Monday, November 8, 2010

Do you want money in your pocket this tax season?

 Check out the Earned Income Tax Credit (EITC) to see if you qualify. Both the EITC and Child Tax Credit are refundable tax credits for eligible working individuals and families. You must file for the credits with your tax return! As an example, a family with three or more qualifying children who earn less than $48,362 (married filing jointly) may be eligible for a refund of up to $5,666. These tax credits do not count as income in determining eligibility for public benefits like food stamps, SSI, Medicaid, TANF, and public housing.

HOW TO APPLY

• You must have a valid SSN, worked full- or part-time, earned at least one dollar, and have investment income of less than $3,100.

• To file for the Earned Income Tax Credit with dependents, file federal tax return Form 1040 or 1040A. For those with no dependents (single or married), use Form 1040EZ, if you’re eligible to use this form. Include Schedule EITC with tax return.

• To file for the Child Tax Credit, follow the same requirements stated above but include Form 8812 with tax return.

No-cost tax preparation services are available in Idaho. The AARP Tax-Aide trains volunteers to prepare federal and state tax returns, at no cost, for low-to-moderate income taxpayers. Sites are open throughout eastern Idaho starting in February. For information on the Tax Credits and AARP Tax-Aide, contact Idaho CareLine by calling 2-1-1, the call is free statewide, or visit www.p4peid.org/cash

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