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.
The EITC Finder, created by Intuit Inc. (Nasdaq: INTU), maker of TurboTax®, is a free smartphone app that makes determining eligibility easy. The EITC Finder is available in both English and Spanish on the App Store, Android Market and Amazon App Store.
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 credit.
The EITC 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. consumers.
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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