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EITC is a federal income tax credit that is refunded to qualified taxpayers after their taxes have been paid. Even if you don't have to pay any taxes on your income, you may still qualify for a refund. EITC is based on the amount of your earned income; it is set up on a sliding scale and is claimed by filing a federal income tax return. Click Here to learn more about the EITC or call the IRS at 800-829-1040.
| EITC Income Eligibility Guidelines for 2009 |
| Household Size |
Annual income |
Families with three or more qualifying children |
less than $43,279 in 2009 ($48,279 if married and filing jointly) |
| Families with two qualifying children |
less than $40,295 in 2009 ($45,295 if married and filing jointly) |
| Families with one qualifying child |
less than $35,463 in 2009 ($40,463 if married filing jointly) |
| Families or an individual with no qualifying children |
less than $13,440
(you must be between the ages of 25 and 64) |
The maximum amount of investment income you can have in 2009
and still be eligible for this credit is $3,100. |
State Credit May Also be Available
If you are eligible for the federal EITC you may also qualify for a similar credit from the state of NJ. The New Jersey Earned Income Tax Credit (NJEITC) for the 2009 tax season was 25% of the applicant’s federal EITC. That means, if you were eligible for a $3,000 federal EITC, the amount of the NJEITC will be $750 (25% of $3,000). To learn more call 1-866-698-9065 or visit the NJ Department of Taxation Web site.
If you get Earned Income Tax Credit advance payments from your employer, the maximum you can get for tax year 2009 is $1,826.
If you were eligible for EITC, but did not know it, you can still claim the EITC for up to three previous years.
The EITC has no affect 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.
How to Apply
To receive federal or state tax credits you must file federal and state tax return, even if you are not required to file a return because your income is below the minimum filing threshold.
If You Need Help Filing - Click Here for Tax Assistance Locations (VITA Sites)
Free assistance in the preparation of federal and state Income Tax Returns is available for taxpayers at local VITA sites (Volunteer Income Tax Assistance)*. Here, individuals of low to moderate income, individuals with disabilities, and non-English speaking taxpayers can find direct assistance in filing their returns. We are in the process of updating our VITA listing. Here is a listing of sites from the 2009 tax season. This listing will be updated daily for the 2010 tax season as information becomes available.
If you are 60 years or older, you can get free assistance through TCE (Tax Counseling for the Elderly). The listing of AARP TCE sites can be found by Clicking Here or calling 1-888-227-7669.
VITA sites and AARP TCE sites are staffed by volunteers who are trained to prepare both federal and state returns. Many of these sites prepare tax returns on computers and utilize electronic filing. Electronic filing, or e-filing, is quick and accurate and provides taxpayers with a much quicker refund.
The importance of EITC and VITA as seen on NBC
Sources
http://www.state.nj.us/humanservices/dfd/EITC.html
http://www.state.nj.us/treasury/taxation/
http://www.state.nj.us/treasury/taxation/pdf/eitcstatement.pdf
http://www.irs.gov/individuals/article/0,,id=96406,00.html
http://www.aarp.org/money/taxaide/
http://www.irs.gov/individuals/article/0,,id=177866,00.html
*Updated VITA listing for the 2010 tax season in progress. Check back often for continually updated information.
Page last modified on 2.2.10
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