Helping Working Families With The Earned Income Tax Credit

Helping Working Families With The Earned Income Tax Credit



Helping Working Families with the​ Earned Income Tax Credit
In the​ past,​ clients of​ NORWESCAP's Family Self-Sufficiency program in​ Morris County,​ NJ have used the​ tax return they received through the​ Earned Income Tax Credit (EITC) for a​ down payment on​ a​ car,​ a​ security deposit on​ an​ apartment or​ to​ pay debts,​ said Penny Olson,​ the​ program's director .​
For clients of​ Homeless Solutions,​ which provides affordable and transitional housing,​ the​ prospect of​ a​ large tax return can make a​ significant difference,​ executive director Elizabeth Hall said.
Those agencies are part of​ an​ effort to​ encourage low-income working residents to​ ask about the​ EITC when they file their 2018 taxes .​
The earned income tax credit is​ supposed to​ help low-income working families,​ but over the​ years it​ has been clear many eligible workers don't apply for it.
The Earned Income Tax Credit is​ for working families with incomes less than $37,​263 .​
If eligible,​ they may receive money back from the​ Internal Revenue Service (IRS) even if​ they don't owe taxes - but they must file a​ tax return .​
The EITC is​ above and beyond any amount the​ families get from the​ child tax credit,​ which is​ a​ maximum of​ $1,​000 per child and is​ aimed mainly at​ middle income households .​
Across the​ nation,​ about 21 million people claimed the​ credit last year,​ pulling in​ $39 billion,​ according to​ the​ IRS .​
Although only about 75 percent of​ eligible filers claimed their due,​ the​ federal program - which was created in​ 1975 under President Ford and later expanded under Presidents Reagan and Clinton - has eclipsed welfare as​ the​ main source of​ cash assistance for low-income families.
To help out,​ the​ IRS has set up something called the​ EITC Assistant on​ its Web site to​ provide information,​ eligibility worksheets and explanations of​ the​ credit .​
A variety of​ organizations sponsor Volunteer Income Tax Assistance (VITA) sites in​ their communities to​ prepare tax returns for those who cannot prepare their own yet cannot afford professional help .​
In concert with the​ IRS e-file program,​ whose goal it​ is​ to​ receive 80% of​ all tax returns electronically by 2018,​ www.Taxhead.com is​ encouraging low-income and first-time tax filers to​ try eFile in​ 2018 (filing 2018 tax returns).
An executive from Taxhead.com said,​ We are trying to​ reach those persons that qualify for the​ earned income tax credit .​
Our tax software has always been free to​ use .​
In other words you​ can prepare your taxes for free and mail them to​ the​ IRS .​
But if​ you​ want to​ gain the​ benefits of​ eFile,​ or​ electronic filing,​ we charge a​ small fee of​ less than ten dollars.




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