Contact: Gigi Thompson Jarvis, CAE
202.822.6232 x119
gjarvis@naea.org
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For Immediate Release
The Substantial Tax Credit that Often Goes Unclaimed
WASHINGTON, DC (February 9, 2011) Can you name one of the federal government's largest and most overlooked benefit programs for working families and individuals? If you aren't aware of the Earned Income Tax Credit, or EITC, you're not alone: only four out of five eligible taxpayers claimed this credit last year. The EITC is a helping hand for workers who are not earning high incomes.
Paradoxically, one reason why the EITC is often overlooked is that in the past few years more Americans became eligible to claim it. The American Recovery and Reinvestment Act of 2009 created a new category of families with three or more children and increased the maximum benefit of EITC for tax years 2009 and 2010. The Tax Relief and Job Creation Act of 2010 extended this benefit through 2012.
"If you, or someone you know, are struggling financially during these tough economic times, the EITC can really make a difference," said Diana Molina, EA, an enrolled agent with M & M Financial Advisors in Plantation, Florida. "A number of factors can change eligibility for this credit, such as a change in earnings, the birth of a child, or a change in filing status. If you were ineligible to take advantage of this credit last year, that does not mean you are not eligible for tax year 2010."
The EITC enables workers with three or more children to qualify for a maximum tax credit of $5,666 for tax year 2010. Workers without children may also be eligible, but for a smaller dollar amount. In order to qualify, workers must have earned $48,362 or less last year. Those claiming the EITC in tax year 2009 on average received a $2,200 tax credit. Please note: even if you are not otherwise required by law to file a tax return, you must do so if you want to claim this credit. .
Moderate to low income families or individuals can find out whether or not they qualify for the EITC by answering a few simple questions on the EITC Assistant page on the IRS website. They can file for free on www.irs.gov, or receive free assistance in one of the 400 IRS Tax Assistance Centers located around the country.
About Enrolled Agents
Enrolled agents ("EAs") are federally licensed tax practitioners who have proven their competency through testing and must complete annual continuing education that is reported to the IRS. If you are looking for a paid tax return preparer to make certain you take advantage of all the deductions and credits you're entitled to, you can find an EA in your area by going to the "Find an Enrolled Agent" directory on the NAEA website, www.neae.org.
The National Association of Enrolled Agents (NAEA) is the professional society that supports its members with resources, education and networking and by representing their interests to government, business and the general public. Find out more about NAEA and becoming an enrolled agent at www.naea.org