Don't Leave Tax Credits Unclaimed This Tax Season! (1/10/12)

 Working families who earn below a certain amount, or have children, may be able to receive tax breaks from the government. The Earned Income Tax Credit (EIC) is intended to lessen the burden on low-income families struggling to make ends meet. Families qualifying for tax credits will receive a rebate check from the IRS after taxes are paid. Even if taxes aren’t owed, the benefit check can still be received, as long as taxes are filed.

“Working people give their all to support themselves and their families, and now is the time to make sure you are getting every tax break you deserve,” said RWDSU President Stuart Appelbaum. “Union members need to look into these valuable tax credits and make sure they are taking full advantage of them.”

Earned Income Tax Credit Aids Low-Income Families

Thanks to the Earned Income Tax Credit (EIC), working families earning up to $46,000 can qualify for tax credits as high as $5,751. Single or married people who worked full or part-time at some point in 2010 can qualify for the EIC, depending on their income.
A worker who supported two or more children in 2010 and earned up to $40,964 can claim up to $5,112.
Single workers between the ages of 25 and 64 without children, who earned less than $13,660 can get an EIC of up to $457. Workers who were raising one child in their home and had a family income of less than $36,052 in 2009 can get an EIC of up to $3,094.
For the EIC, “qualifying children” include sons, daughters, stepchildren, grandchildren and adopted children, as long as they lived with the taxpayer for more than half of 2010. Nieces, nephews, children of a friend or foster children can qualify if they lived with the taxpayer all year and were cared for as members of the family.
Children must be under the age of 19, or under 24 if they are full-time students. Totally and permanently disabled children of any age are also considered “qualifying children.” A valid Social Security number is required for any child born before December 31, 2010.

Child Tax Credit an Additional Help

The Child Tax Credit (CTC), passed in 1998, is also in place to aid working families. The credit is worth up to $1,000 per child under the age of 17. Unlike the EIC, credit is only received if needed for taxes, not if the amount of the credit surpasses the total income tax of the family.   

Single or married parents may claim the CTC. Qualifying children must be under the age of 17 at the end of 2010 must be a U.S. citizen or resident alien, and must be claimed as a dependant on the taxpayer’s 2010 federal tax return. The dependant must be a son, daughter, adopted child, grandchild or stepchild. Foster children count if they are dependants and lived with the taxpayer the entire year.

Claim Your Tax Breaks

Despite the availability of these benefits, millions of dollars worth of tax credits go unclaimed because families don’t file for them – estimates say up to 25 percent of eligible workers aren’t claiming them. To receive the EIC, taxpayers must file either form 1040 or 1040A and attach schedule EIC. Married workers must file jointly, and workers without children can file any tax form. Just make sure to write “EIC” on the EIC line on the form.

The CTC can be obtained using the same 1040 and 1040A forms. To receive information from the IRS, call (800) 829-1040.  This number can also be used to obtain information on the Volunteer Income Tax Assistance program. VITA is a program run by the IRS, and it can help clear up tax form confusion.

The CTC and EIC do not interfere with any other food stamp, welfare, Social Security, Medicaid or federal housing assistance programs.