Friday, January 25, 2013

Earned Income Tax Credit – Nearly 20% of Washington Taxpayers Miss Out

Nearly 20 percent of Washington taxpayers eligible for the Earned Income Tax Credit miss out on it each year and the possibility of receiving up to $5,891 from the Internal Revenue Service.

The Earned Income Tax Credit is a refundable federal income tax credit for low to moderate income working individuals and families. Congress originally approved the tax credit legislation in 1975 in part to offset the burden of social security taxes and to provide an incentive to work. When EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.

Last year, 432,000 individuals and families in Washington applied for the credit, bringing about $885 million into the state’s economy. The average EITC refund was more than $2,000. That money is a welcome boost for these taxpayers and to businesses in their communities.


See If You Qualify
To qualify, you must file a 2012 federal income tax return to receive the EITC – even if you owe no tax. To find out if you qualify for the credit, visit the IRS website at http://www.eitc.irs.gov/central/abouteitc/ranges/ .

Free Tax Assistance
Free tax assistance is available to eligible taxpayers by dialing the state information hotline at 2-1-1 or through free, in person tax assistance centers. To find a tax assistance location near you, visit AARP’s website http://www.aarp.org/applications/VMISLocator/searchTaxAideLocations.action

More Information
For more information about the Earned Income Tax Credit, visit the Washington Department of Commerce’s website at http://www.commerce.wa.gov/Programs/services/Pages/AssetBuilding.aspx