Earned Income Tax Credit (EITC): Refunds Available for Low to Moderate Income Individuals and Families
Did you know?
In 2011, 339,075 Coloradan families received Earned Income Tax Credit Refunds.
The average refund was $2,017 and the total amount of EITC refunds was $684 million.
Nationwide in 2011, over 26.8 million people received almost $59.5 billion in EITC for the 2010 Tax Year. (Resource: IRS statistics)
The EITC is available for low to moderate income working individuals and families making less than $49,000. Eligible individuals may receive refunds up to $464 and families may receive refunds up to $5,751 from EITC. Please see table below.
|
2011 Earned Income Credit |
||
|
Number of Qualifying Children |
Earned Income AGI Less Than |
Maximum Credit |
|
0 |
$13,660 ($18,740 MFJ) |
$ 464 |
|
1 |
$36,052 ($41,132 MFJ) |
$3,094 |
|
2 |
$40,964 ($46,044 MFJ) |
$5,112 |
|
3 or more |
$43,998 ($49,078 MFJ) |
$5,751 |
Even though the EITC is available to millions of low-income individuals and working families, there is a significant segment of this population who do not claim it. Individuals with earned income (i.e. salaries, wages, commissions, tips, etc.) may claim this credit in forms 1040 or 1040A and must complete and attach Schedule EIT. Workers without children can file the 1040EZ. In addition, families claiming the EITC must include correct name and social security number for all persons in the household. It is important to mention the EITC is not considered income for other benefits such as cash assistance, food stamps, Medicaid or public housing. In particular, families participating in the Personal Investment Enterprise (PIE) Program can use this refund to make a lump deposit up to $500 in order to reach their savings goal.
There are several programs that offer FREE tax services to families qualifying for the EITC:
*The IRS provides online Free File to claim EITC. Visit http://www.irs.gov/efile/index.html Additional information about EITC may be found at http://www.irs.gov/individuals/article/0,,id=96406,00.html.
*The Piton Foundation has conducted the Tax Credits for Working Families Campaign for over 20 years. The primary goal is to increase the number of eligible families in Colorado receiving the Earned Income Tax Credit, as well as other tax credits aimed at helping lower-income families. Visit http://www.piton.org/eitc for additional information on EITC. The Piton Foundation provides tax preparation assistance throughout Colorado at Tax Help Colorado locations. Please visit http://www.piton.org/TaxSites for a location near you.
*The Boulder County Volunteer Income Tax Assistance (VITA) Program offers free tax preparation (http://www.coloradovita.org) and IRS e-file in the following locations:
- Longmont Senior Center, Longmont
910 Longs Peak Avenue
February 2 through April 12
Tuesday and Thursdays, 9 am to 1 pm
By appointments only. Call 303-651-8442. If you are filing only a City of Longmont rebate of state 104 PTC, no appointment is necessary
- St. Vrain Valley Credit Union Training Center, Longmont
2050 Terry Street, Suite 101
February 1 through April 14
Wednesdays and Thursdays, 6 to 8:30 pm
Saturdays, 9 am to 1 pm
Walk-ins only
- Front Range Community College, Longmont
2121 Miller Drive, Building C
February 4 through April 14
Saturdays, 10 am to 2 pm
Closed March 17 and March 24
Walk-ins only
- Boulder County, Boulder
North Broadway Complex
Sundquist Building
Tuesdays, 9 am to 4:30 pm
Walk-ins only
- Boulder County Human Services, Longmont
529 Coffman Street, Suite 190
Wednesdays, 9 am to 4:30 pm
Walk-ins only
Federal, State and Local governments also encourage claiming this refund since it helps the economy. Families receiving this credit use the money to increase savings, purchase assets of high value or simply purchase clothes or groceries, which increases the sales tax revenue to fund other programs. If you or you know persons who qualify for the Earned Income Tax Credit (EITC) please encourage them to include Schedule EIT with their 2011 Income Tax Return.
Submitted by Nino Gallo, PIE Program Coordinator
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