Earned Income Tax Credit Could Put Up to $5,800 in Many Taxpayers’ Pockets
An estimated 25 percent of qualified workers fail to claim the Earned
Income Tax Credit each year, according to the Internal Revenue
Service. The credit, which could be worth up to $5,800 for a family of
four, is among the most commonly overlooked tax credits.
Designed for lower and middle-income taxpayers who can access the
Internet on their smart phones, the EITC Finder asks a few simple
questions, such as “Are you married or single?” and “How many children
do you support?” to determine eligibility. If the individual qualifies
for the EITC, the app estimates the possible state and federal refund.
The majority of taxpayers claiming the EITC are eligible for free tax
preparation. Taxpayers can prepare and file their return online at
no cost through the Free File program at www.irs.gov.
TurboTax Freedom Edition
is available to anyone with adjusted gross income of $31,000 or less or
those on active military duty with adjusted gross income of $57,000 or
less and those who qualify for the EITC. In addition, taxpayers who
choose the TurboTax Freedom Edition can also prepare and file state
returns in 23 states at no additional costs.
National EITC Awareness Day is Jan. 25
National Earned Income Tax Credit Awareness Day, recognized on January
25, is an initiative that educates eligible taxpayers about the EITC and
reminds them that they must file a tax year 2012 return to claim the
is for people who work, but have low wages. Anyone with earnings under
$50,000 should see if they qualify. In addition to reducing the amount
of taxes owed, the EITC may also produce a tax refund. More than
27 million taxpayers received nearly $62 billion in earned income tax
credits for the 2011 tax year.
“The EITC puts money back where it’s needed the most, in the hands of
hardworking people,” said Bernie McKay, director of the American
Tax & Financial Center at TurboTax. “We urge eligible taxpayers
to claim this credit. Taxpayers of all income levels benefit when they
are fully engaged in preparing their own returns and learn how to claim
the credits and deductions they are entitled to, especially the EITC.
It’s a cornerstone of financial empowerment.”
About The American Tax & Financial Center at TurboTax
Established in November 2012, The American
Tax & Financial Center at TurboTax provides objective and
independent data and insights on tax and personal finance trends. The
Tax Center is now available to provide taxpayers, policymakers and media
with resources and expert commentary on the impact of taxes on U.S.
The center’s primary goal is to help Americans in understanding
financial matters so they can make informed financial decisions. The
center educates and advocates for individuals by helping them take
ownership of their financial future. For more information, visit The
American Tax & Financial Center at TurboTax at www.americantaxandfinancialcenter.com.
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