Life’s a little easier with EITC: Earned Income Tax Credit

Earned Income Tax Credit is for people who work for someone else or own or run a business. To qualify, you must have low to mid income. If you qualify, you must file a federal tax return to get EITC even if you owe no tax and are not required to file. With EITC (sometimes called EIC), you could pay less federal tax, pay no tax, or receive money back.

The amount of EITC changes based on:

• if you are single or married; and,
• if you have no children or the number of children living with you.

All people eligible for EITC have seven things in common:

1. Have earned income
2. Have a valid Social Security number
3. Do not file as married filing separately
4. Generally are not a nonresident alien
5. Are not a qualifying child of another person
6. Are not filing Form 2555 or Form 2555-EZ
7. Have limited investment income

Four most common EITC filing errors:

1. Claiming a child who does not meet the qualifying tests for age, relationship and residency.
2. Filing as single or head of household when married.
3. Under or over reporting income or expenses.
4. Social Security number and last name mismatches .

Want to file your taxes for free?

Anyone who makes under 79,000 can get their taxes done at no cost. Contact our VITA (Volunteer Income Tax Assistance) program at 435-893-0728 or 435-893-0722 to make an appointment or to find out more information.

Your preparer, whether paid or volunteer, needs to ask many questions to file your return correctly.

Going for tax help or return preparation? Go prepared with:

• Valid driver’s license or other photo id card for you and your spouse if filing a joint return.
• Social security cards or a Social Security number (SSN) verification letter for all persons listed on the return.
• Birth dates for all persons listed on return.
• All income statements: Forms W-2 and 1099, Social Security, unemployment, and other statements, such as pensions, stocks, interest and any documents showing taxes withheld. If self-employed or you own or run a business, bring records of all your income.
• All records of expenses, such as tuition, mortgage interest, or real estate taxes. If self-employed or you own or run a business, bring records of all your expenses.
• Copies of last year’s state and federal tax returns, if you have them.
• Bank routing numbers and account numbers to direct deposit any refund.
• Dependent child care information: name and address of who you paid and either the caretaker’s SSN or other tax identification number.
• Both spouses to sign forms to e-file your joint tax return.

Learn more about the EITC at IRS.gov.