The government may owe you money!
Earned Income Tax Credit (EITC)
Do you qualify for the Earned Income Tax Credit or Advance Earned Income Tax Credit?
Thousands of Alaskans qualified last year but did not claim it on their tax return.
Earned Income Tax Credit and Advance Earned Income Tax Credit are tax benefits for people who work but do not earn a high income. Both reward people who find and keep a job by adding to the wages they earn.
What is the difference between the Earned Income Tax Credit and Advance Earned Income Tax Credit?
- The Earned Income Tax Credit is a credit you can claim when you file your federal income tax return. If you qualify, it can mean you will pay less tax, no tax, or even get a refund.
- The Advance Earned Income Tax Credit is the portion of the credit that can be added to your wages throughout the year 2006 instead of all at once. Even if you receive the Advance Earned Income Tax Credit in 2006, you may still claim a larger earned income tax credit when you file your tax return in 2007. Remember, you must file your tax return to claim any additional credit next year.
The actual amount of credit you can get from EITC or Advance EITC depends on the total earnings you have, other income and certain other considerations.
Who may qualify for the EITC and Advance EITC?
Working people with or without children, single or married, who have earned income from employment or self-employment, may be eligible for EITC. However, working people without children are not eligible for Advance Earned Income Tax Credit.
How much Earned Income Tax Credit can you claim for tax year 2006?
- If your earned income is less than $12,120.00 and you do not have a child, your EITC could be as much as $412.00.
- If your earned income is less than $32,001.00 and you have one child, your EITC could be as much as $2,747.00
- If your earned income is less than $36,348.00 and you have more than one child, your EITC could be as much as $4,538.00.
A child must meet certain requirements to qualify for the EITC program.
- A qualifying child is a child who is the taxpayer’s son, daughter, grandchild, adopted child, stepchild or foster child
AND
Under the age of 19, or under 24 and a student at the end of the year 2006, or permanently and totally disabled at any time during the year, regardless of age.
AND
Live with the taxpayer in the United States for more than half of the year 2006.
Visit the IRS website at www.irs-eitc.info or your local DPA office for more information.
Do you need assistance in filing out your tax forms?
For a listing of the site nearest you, please call 1-800-829-1040
If you receive public assistance, your refund will not count against your benefits. Contact your Public Assistance caseworker for more information.
Visit the IRS website for specific information on the EITC Program, including Publication 596. Taxpayers may figure the EITC themselves or have the IRS figure the EITC by following instructions on page 25 of Publication 596. You may also call the IRS at 1-800-829-1040.
How do you get the EITC?
You must file an income tax return to receive the EITC.
- If you have a qualifying child, you must file federal tax return 1040 or 1040A and attach IRS Schedule EIC. (Note that you must list your child's social security number on the Schedule EIC in order to claim that child as a qualifying child.)
- If you do not have a qualifying child, you can file any federal tax return (including the 1040EZ), and you do not need to attach the IRS Schedule EIC.
You can get these tax forms at post offices, libraries, and IRS offices or by calling 1-800-TAX-FORM.
Advance Earned Income Tax Credit
If you have a qualifying child, and you are eligible for the EITC, you may be able to receive part of the tax credit with each paycheck throughout the year. To do so, you must fill out an IRS Form W5 and give it to your employer. You can get the Form W5 at post offices, libraries, and IRS offices or by calling 1-800-TAX-FORM.
Were you eligible for the EITC in the past, but did not receive it?
If you think you may have been eligible for the EITC during any of the past three years, but did not claim it, the IRS may owe you additional money. Please call the IRS at 1-800-829-1040 to find out how to get the EITC for a previous tax year.