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Earned Income Tax Credit (EITC)
is a refundable federal income tax credit for
low-and moderate-income working individuals and
families. Congress, with strong bipartisan
support, originally approved the tax credit
legislation in 1975. When EITC exceeds the
amount of taxes owed, it results in a tax refund
to those who claim and qualify for the credit.
To qualify,
taxpayers must meet certain requirements and
file a tax return, even if they did not earn
enough money to be obligated to file a tax
return. EITC has no effect on certain welfare
benefits. In most cases, EITC payments will not
be used to determine eligibility for Medicaid,
Supplemental Security Income (SSI), food stamps,
low-income housing or most Temporary Assistance
for Needy Families (TANF) payments.
Fast Facts
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Earned Income
Tax Credit (EITC) is an amount that has been
set aside by the federal government and is
designed to aid low-to-moderate income
workers.
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EITC
is a refundable credit that can potentially be
larger than the amount of taxes withheld from
a qualifying worker’s paycheck.
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Amended returns
can be filed for up to three years back to
receive a potential refund of up to over
$13,000.
Eligible
residents of Hillsborough and Pinellas Counties
can have their taxes prepared free by certified
tax preparers who will also ensure that eligible
recipients receive their full, earned share of
EITC. Recipients may invest their EITC money for
needs such as reliable transportation, safe
housing, payment of bills, college funds, and
savings accounts to buy a home or other future
needs. |
