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Make Less Than $50K And Have 3 Kids? You May Qualify For A Big Tax Credit…

eitc moneybagIowa — Iowa families could get thousands of dollars by taking advantage of a federal tax credit. Christopher Miller, the Iowa spokesman for the Internal Revenue Service, says the agency is trying to raise awareness about the Earned Income Tax Credit.

(As above) “The EITC is a huge credit for working families, generally low to moderate-income families, that may not make a lot of money,” Miller says. “Depending on their income, for a family with three or more children, it can be a credit of up to $5,891.”

To find out if you may be due some dough, Miller says to visit the agency’s website, i-r-s-dot-gov.

(As above) “We have an EITC assistant and it will allow you to plug in all of your information and find out if you qualify,” Miller says. “You can also go to a Volunteer Income Tax Assistance site, or a VITA site in your community and they will help you prepare your tax return for free and electronically file it.”

Miller says Iowans who work and earn less than roughly 50-thousand dollars from wages, self-employment or farming may be eligible for the EITC, as well as free help preparing their return.

(As above) “Last year, around 207,000 families in Iowa received around $425-million in EITC and the average check was around $2,062,” Miller says. “This is certainly money that can make a real difference to families trying to make ends meet.”

Although an estimated four out of five eligible workers and families get the credit, Miller says one in five still miss out, either because they don’t claim it when filing, or don’t file a tax return.

Also, the EITC is what’s called a “refundable” tax credit. That means it can produce a federal tax refund that is larger than the amount of money a person actually paid in during the year. In fact, even if you are in an income situation where you owe NO tax, you could still get money from the IRS if you qualify for the EITC and file a return claiming it. Most other tax credits can reduce the amount you have to pay to zero, but that’s all. Refundable credits like the EITC actually pay YOU after the amount you have to pay reaches zero.

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