- TO:
- ALL COUNTY OFFICES
- FROM:
- ALYSON CAMPBELL, DIRECTOR
- SUBJECT:
- EARNED INCOME TAX CREDIT
DISCUSSION:
The Earned Income Tax Credit (EITC or EIC) is a refundable federal income tax credit for low to moderate income working individuals and families. It's important to provide information about the EITC to program participants that may be eligible.
To qualify, taxpayers must meet certain requirements and file a tax return, even if they do not have a filing requirement.
The income limits for the 2012 tax year are:
- $45,060 ($50,270 married filing jointly) with three or more qualifying children
- $41,952 ($47,162 married filing jointly) with two qualifying children
- $36,920 ($42,130 married filing jointly) with one qualifying child
- $13,980 ($19,190 married filing jointly) with no qualifying children
The maximum credit received for the 2012 Tax Year is:
- $5,891 with three or more qualifying children
- $5,236 with two qualifying children
- $3,169 with one qualifying child
- $475 with no qualifying children
Investment income must be $3,200 or less for the year.
Program participants may receive help filing tax returns free of charge from a number of Volunteer Income Tax Assistance (VITA) sites. Trained community volunteers can assist by preparing tax returns and determining if participants qualify for the EIC and other tax credits. The Internal Revenue Service (IRS) can assist participants in finding the nearest VITA site by calling 1-800-906-9887.
A number of Community Action Agencies around the state are among those sites providing VITA services. A list of Community Action Agencies participating is attached to this memorandum.
Discuss the EITC with everyone who had earned income during 2012 and refer them to the VITA sites for assistance.
Also attached is printed information on EITC in both English and Spanish. Please copy and post both versions of this brochure in public areas of your office.
NECESSARY ACTION:
- Review this information with all staff.
- Refer program participants to the local Volunteer Income Tax Assistance (VITA) program providers.
- Post the attachments and provide copies as needed.
ATTACHMENT:
AC/dbh