Earned Income Tax Credit (EITC): Refunds Available for Low to Moderate Income Individuals and Families
Did you know?
Free tax help is available to ensure working families get the refunds they deserve.
In 2012, 345,000 Colorado families received Earned Income Tax Credit Refunds. The average refund was $2,083 and the total amount of EITC refunds was $719 million.
Nationwide in 2012, over 26.5 million people received almost $60.7 billion in EITC for the 2011 Tax Year. (Resource: IRS statistics)
The EITC is available for low to moderate income working individuals and families making less than $50,000. Eligible individuals may receive refunds up to $475 and families may receive refunds up to $5,891 from EITC. Please see table below.
|
2012 Earned Income Credit |
||
|
Number of Qualifying Children |
Earned Income AGI Less Than |
Maximum Credit |
|
0 |
$13,980 ($19,190 MFJ) |
$ 475 |
|
1 |
$36,920 ($42,130 MFJ) |
$3,169 |
|
2 |
$41,952 ($47,162 MFJ) |
$5,236 |
|
3 or more |
$45,160 ($50,270 MFJ) |
$5,891 |
|
|
|
|
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. Families claiming the EITC must include correct names and social security numbers 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: IRS e-file website. Additional information about EITC may be found at: IRS EITC Homepage.
*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 Piton Foundation for additional information on EITC. The Piton Foundation provides tax preparation assistance throughout Colorado at Tax Help Colorado locations. Please visit Piton's tax sites website for a location near you or see the listing below.
Free tax preparation and IRS e-file at the following locations:
- AARP Longmont
Senior Center, Longmont
910 Longs Peak Avenue
February 5 through April 11
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.
- Longmont VITA
St. Vrain Valley Credit Union Training Center, Longmont
2050 Terry Street, Suite 101
February 2 through April 13
Wednesdays and Thursdays, 6 to 8:30 pm
Saturdays, 9 am to 1 pm
Walk-ins only
- CU Boulder VITA
CU Boulder LEEDS School of Business
995 Regent Drive
419 UCB
January 30 through March 20
Wednesdays, 5 pm to 7:30 pm
Saturdays, 9 am to 2 pm
Walk-ins only
- AARP Boulder
East Senior Center
5660 Sioux Drive
February 7 through April 11
Thursdays, 8:30 am to 12:00 pm
By appointment
303-441-4150
- AARP Boulder
West Senior Center
909 Arapahoe Avenue
February 5 through April 9
Tuesdays, 9 am to 12:00 pm
By appointment
303-441-3148
- AARP Louisville
Rec Center
900 Via Appia Way
February 1 through April 12
Tuesdays and Fridays, 1 pm to 5 pm
By appointment
303-666-7400
- AARP Lafayette
Library
775 W Baseline Rd
February 5 through April 2
Tuesdays, 1 pm to 4 pm
By appointment
303-665-5200
- AARP Broomfield
Senior Center
280 Lamar Street
February 1 through April 12
Fridays, 9:30 am to 2:30 pm
By appointment
303-464-5526
When filing taxes, be sure to also ask about…
- The Child Tax Credit, which also helps working families with children. This credit is worth up to $1,000 per child. File form 8812 with your tax return.
- Special tax credits for those who are saving for retirement or paying for college.
Additional tax tips can be found here Download Tax Check-List-2013
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 increase the sales tax revenue to fund other programs. If you know of anyone who qualifies for the Earned Income Tax Credit (EITC), please encourage him/her to include Schedule EIT with their 2012 Income Tax Return.
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