Don’t forget about the earned income tax credit! Tax time is just getting under way. You should be receiving your tax documents in the mail. If your household earns less than $56,000 you may qualify for a tax credit and free tax filing assistance.
Earned Income Tax credits
The largest tax credit is still the Earned Income Tax Credit (EITC) – so if you have child(ren) check this out. The EITC amounts change each year. For the 2019 tax year, the maximum you can get back is $6,557 for three or more children, $5,828 with two qualifying children, $3,526 with one child. Eligibility depends on several factors such as filing status, income level, and number of qualifying children, and citizenship. Some states offer a match to the federal EITC.
- Earned Income Tax Credits for Families:
- Low income wage earners with no children can get $529
- The Child Tax Credit is also available and this year it is up to $2,000 for each child under the age of 17 claimed on the return.
- The Child and Dependent Care Tax Credit is a federal tax credit to help families pay for childcare while working or looking for employment. This also includes care of a spouse or adult dependent who is incapable of caring for themselves.
- Education Tax Credits:
- American Opportunity Tax Credit is a credit worth $2,500 per eligible student per year, to assist students and families with expenses incurred during the first four years of post-secondary education.
- Lifetime Learning Credit is a credit worth up to $2,000 per eligible student per year, to help students pay for expenses such as tuition, books, and supplies during post-high school education.
- Retirement Tax Credit:
- Savers Tax Credit is a credit for employees who make contributions to a retirement plan or Individual Retirement Account (IRA). This can be worth 10 to 50 percent of a maximum $2,000 contribution.
- Other Tax Credit:
- PTC Rebate – this is a state tax credit that provides property, rent, heat credits for low-income seniors and disabled individuals.
Filing Assistance for Earned Income Tax Credits
- VITA site (Volunteer Income Tax Assistance) or contact 2-1-1 for referral
- Vita sites vary depending on location, some are walk in and others take appointments, you can search for a VITA site by zip code, each listing will have location information including hours and if appointments are needed.
- If you make $66,000 or less you may file through this partnership with United Way and H & R Block.
- Prepare and file federal income tax using tax preparation and filing software through the IRS.
- If you make $69,000 or less you are eligible to file your taxes for free through the IRS site.