Earned Income Tax Credit

 

 

 

 

The Earned Income Tax Credit (EITC) is a refundable federal income tax credit for low-income working individuals and families.  Data taken from United Way’s recent community assessment has illustrated that more than one third of those eligible for EITC in our community are not claiming it.  This translates into hundreds of thousands of dollars of potential income for these hard working individuals and families.

United Way and the CASH Coalition (Creating Assets Savings and Hope) are hosting free tax preparation sites in Poughkeepsie, Fishkill and Millerton to help residents complete their tax returns and all the necessary forms to claim their EITC. Working families making less than $39,783 ($12,590 for individuals) can simply dial 2-1-1 to be connected to one of these tax preparation sites. Residents can call 24 hours per day, seven days per week for EITC information, to find out if they qualify and also to schedule an appointment with a qualified tax preparer.

Do I Qualify for EITC?

To qualify, you must meet certain requirements.
Dial 2-1-1 for a free screening of eligibility.

General requirements for individuals and families:

- You must be a U.S. citizen or resident alien all year

- You must have earned taxable income in 2007

- You must have a valid Social Security Number for yourself, your spouse (if married and filing jointly) and your qualifying children

- Investment income is less than $2,900

- Filing status cannot be “married filing separately”

- You cannot be a qualifying child of another person

- You cannot file Form 2555 or Form 2555-EZ (which is related to foreign income)

For 2007, you must have an adjusted gross income of
less than:

- $37,783 (39,783 if married filing jointly) with two or more qualifying children

- $33,241 (35,241 if married filing jointly) with one qualifying child.

- $12,590 ($14,590) if married filing jointly) with no qualifying children.

Requirements for those with children:

Not all children are considered qualifying dependents. A qualifying dependent must have a valid social security number and meet the following three requirements:

- The child must have lived with you in the U.S. for more than half of 2007.

- The child must be your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of these individuals.

- At the end of 2007, the child must have been under 19, a full-time student under 24, or any age if permanently and totally disabled

Qualifying adopted children and adopted children include:

- A foster child who was placed with you by an authorized government or private agency.

- A legally adopted child or a child lawfully placed with you for legal adoption.

Requirements for those without children:

At the end of 2007, you must have been at least 25, but under 65. You cannot qualify as the dependent of another person. You must have lived in the U.S. for more than half of 2007.

Click here to read the News Release from the 2008 EITC Kick Off event.

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