Texans Get Help Filing for Earned Income Tax Credit

AUSTIN – Qualifying Texans can continue to benefit from the Earned Income Tax Credit (EITC) which allows lower-income individuals and families to pay less or no federal tax or receive cash payments. The Texas Workforce Commission (TWC) and the 28 local workforce boards are offering services to help qualified taxpayers take advantage of EITC including free tax preparation assistance by Volunteer Income Tax Assistance (VITA) volunteers.

EITC inserts have been included in the mailings of 1099 tax forms to all Calendar Year (CY) 2007 Unemployment Insurance (UI) recipients. Many workforce boards are placing links to the Internal Revenue Service (IRS) EITC site on computers in workforce center resource rooms along with links to the Texas Comptroller’s Web site http://www.window.state.tx.us/taxinfo/eitc/ which provides information on EITC and local VITA sites across Texas.

The IRS estimates that in 2006 more than 2 million Texans claimed more than $4.8 billion in EITC credits statewide; the average refund was $2208. In recent years Texas has ranked first in the nation in the number of EITC dollars that taxpayers claimed. However the IRS estimates that more than 20 percent of Americans who qualify for the credit fail to claim it on their tax returns despite the credit’s availability.

Under certain limitations for 2007 individuals may qualify if their adjusted gross income is less than:

• $37783 ($39783 married filing jointly) with two or more qualifying children;
• $33241 ($35241 married filing jointly) with one qualifying child;
• $12590 ($14590 married filing jointly) with no qualifying children.

The maximum credit for 2007 is as follows:

• $4716 with two or more qualifying children;
• $2853 with one qualifying child;
• $428 with no qualifying children.
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Investment income must be less than $2900 for the year.