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.
2012 Tax Year
Earned Income and adjusted gross income (AGI) must each be less than:
· $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
Tax Year 2012 maximum credit:
· $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.
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.
The Riverside County EITC program provides year-round free tax preparation assistance through VITA (Volunteer Income Tax Assistance Program) 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. For more information, contact program manager Kgongora@capriverside.org on how you can gain FREE training and certification to prepare taxes for working individuals making less than $49,000.
VITA sites operated throughout the county (East, West, Southwest, Mid-County, Blythe) from January 26th, 2013 to April 27, 2013. Call our office to make an appointment for year-round tax preparation.
You may do your taxes online here: http://myfreetaxes.com/CAPRiverside if your income is less than $57,000.