Thursday, January 03, 2008

Do you qualify for the Earned Income Tax Credit?

If you’re like millions of Americans, you work hard but don’t earn a high income. The EITC is a tax credit for low-income workers who meet certain qualifications, which usually means more money in their pockets. If you qualify, you could pay less federal income tax, pay no tax or receive a refund.

The Internal Revenue Service (IRS) and its community partners are working to increase EITC participation among taxpayers who have low incomes and meet EITC eligibility rules. We know the rules can be complicated and we want to help you understand all the eligibility requirements.

The following are income requirements for the Earned Income Tax Credit for 2007:
A taxpayer’s total earned income must be at least $1 and their earned income and must both be less than:
• $12,590 with no qualifying child ($14,590 if married, filing jointly)
• $33,241 with one qualifying child ($35,241 if married, filing jointly)
• $37,783 with more than one qualifying child ($39,783 if married, filing jointly)
• Investment income cannot be more than $2,900.

If you think you might qualify for EITC and would like assistance filing your tax return, the Community Action Duluth Free Tax Prep site opens on Tuesday, Jan. 29. We will have a new site in West Duluth this year to reduce waiting times at the Community Action Duluth site in Lincoln Park.

Community Action Duluth
Tuesdays starting at 5:00 p.m.
Saturdays starting at 9:00 a.m.
19 North 21st Ave, W.
Walk-ins only

Memorial Park
-West Duluth
Wednesdays starting at 3:00 p.m. 5315 Grand Avenue
Avoid the lines. This site is for people with dependents only. Walk-ins also.
Appointments available 2 weeks in advance call (218) 726-1665.

Lutheran Social Service (LSS) Financial Services staff will be at this site to offer coaching on maximizing the tax return by most effectively paying off/down the debts and encouraging the importance of emergency savings. Free credit reports also available with LSS.

Extra services at both sites: savings accounts with Northern Communities Credit Union, benefit screening and information about financial education classes and matched savings accounts.

Community Action Duluth is still looking for volunteers for the tax sites. One hour of your time could put $2,000 in the pocket of a low-income family. Training is provided and we need volunteers to prepare taxes and also to work as assistants at our busy tax site. Some jobs require no prior knowledge about taxes.