Texas Insider Report: AUSTIN, Texas – April 15, the deadline for filing 2013 federal income tax returns, is just around the corner. For Texans trying to wade through their federal income tax returns, it can often be a challenge. Fortunately, the Internal Revenue Service (IRS) and the Texas Workforce Commission (TWC) stand ready to assist taxpayers with information on preparation services.
With Free File, everyone can file Form 1040 series tax returns at no cost. Free File is a complimentary, federal income tax preparation and electronic filing program for eligible taxpayers. Those with a 2013 Adjusted Gross Income of $58,000 or less who meet additional requirements can qualify for Free File. For more information on the program, visit www.irs.gov/uac/Free-File:-Do-Your-Federal-Taxes-for-Free.
TWC also encourages qualifying taxpayers to take advantage of the Earned Income Tax Credit (EITC), which allows lower-income individuals and families to pay less or no federal income tax, or receive cash payments. Local Workforce Solutions offices offer tax preparation help, including how to file for EITC. Individuals can find more information on specific services provided by local Workforce Solutions offices at www.texasworkforce.org/dirs/wdas/directory-offices-services.html
For Tax Year 2012, the IRS reported approximately 2.6 million Texans claimed more than 6.6 billion in EITC credits. This number reflects 36.8 percent of tax returns filed in Texas with EITC. In past years, Texas has ranked first in the nation in the number of EITC dollars claimed by taxpayers.
Under certain limitations for 2013, individuals may qualify if their adjusted gross income is less than:
- $46,227 ($51,567 married filing jointly) with three or more qualifying children
- $43,038 ($48,378 married filing jointly) with two qualifying children
- $37,870 ($43,210 married filing jointly) with one qualifying child
- $14,340 ($19,680 married filing jointly) with no qualifying children
The maximum credit for 2013 is as follows:
- $6,044 with three or more qualifying children
- $5,372 with two qualifying children
- $3,250 with one qualifying child
- $487 with no qualifying children
Investment income must be $3,300 or less for the year to qualify for EITC. The Earned Income Tax Credit has no negative effect on an individual’s eligibility to receive certain public assistance benefits. In most cases, the credit payments will not be used to determine eligibility for Medicaid, Supplemental Security Income (SSI), the Supplemental Nutrition Assistance Program (SNAP), low-income housing or most Temporary Assistance for Needy Families (TANF) payments.
More information on EITC can be found at www.eitc.irs.gov.
