Earned Income Tax Credit (EITC)

Earned Income Tax Credit (EITC) sometimes called the Earned Income Credit (EIC), is a refundable federal income tax credit for low-income working individuals and families. Congress originally approved the tax credit legislation in 1975 in part to offset the burden of social security taxes and to provide an incentive to work. When the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.

To qualify, taxpayers must meet certain requirements and file a tax return, even if they did not earn enough money to be obligated to file a tax return.

The EITC has no effect on certain welfare benefits. In most cases, EITC payments will not be used to determine eligibility for Medicaid, Supplemental Security Income (SSI), food stamps, low-income housing or most Temporary Assistance for Needy Families (TANF) payments.

 As the 2011 tax season approaches, CAP Riverside is seeking dedicated volunteers to provide free tax preparation for low-to-moderate income residents, enabling them to take advantage of EITC.

The Riverside County EITC program provides year round free tax preparation assistance to residents and encourages asset-development to help families move out of poverty. The only requirements are a willingness to learn something new and a desire to help others.