Earned income tax credit benefits low-income workers | Biz Beat Blog

Each tax filing season, the Internal Revenue Service sets out to raise awareness of the Earned Income Tax Credit.

It?s worth mentioning because some eligible taxpayers aren?t taking advantage of it.

?One-third of the eligible population changes each year as their financial, marital and parental statuses change,? said Clay Sanford, IRS spokesman in Dallas. ?Although an estimated 4 out of 5 eligible workers and families get the credit, 1 in 5 still miss out on it, either because they don?t claim it when filing, or don?t file a tax return at all.?

The credit is aimed at low- and medium-income individuals and couples, primarily for those who have qualifying children.

When the credit exceeds the amount of taxes owed, it results in a tax refund to those who qualify and claim the credit. This makes the credit refundable.

The EITC varies by income, family size and filing status. People can see if they qualify by visiting IRS.gov and answering a few questions using the EITC Assistant. In tax year 2011, over 27 million eligible workers and families received nearly $62 billion total in EITC, nationwide.

Last year, more than 2.5 million families in Texas received the EITC, with an average amount of $2,576.

Source: http://bizbeatblog.dallasnews.com/2013/01/earned-income-tax-credit-benefits-low-income-workers.html/

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