SHAMOKIN - Millions of workers could possibly overlook a special federal tax credit because they don't know about it. As a result, they could miss out on up to $5,751 extra in their federal income tax refunds through the Earned Income Tax Credit, or EITC. Last year, on average, the credit boosted refunds for eligible workers by $2,100.
Central Susquehanna Opportunities, Inc. (CSO) wants to make those eligible aware of this money that can make a real difference to workers struggling in this recovering economy.
Anyone earning $49,078 or less from wages, self-employment or farming in 2011 should see if they qualify. Eligible worker must file federal income tax returns-even if they are not required to file-and specifically must claim the credit to get it.
According to the IRS, many people will qualify for the first time this year due to economic changes in their income or changes in their marital or parental statuses. The agency estimates four out of five eligible workers currently claim their EITC.
Workers can get free help determining their EITC eligibility and claiming the credit. Many communities have volunteer income tax assistance sites. CSO can help you locate the volunteer income tax sites, call 644-6575 for more information.
To help preparers, either volunteer or paid, accurately determine EITC eligibility and prepare returns, individuals should bring:
- Photo proof of identification;
- Social Security cards for themselves, their spouse and all dependents or Social Security number verification letters issued by the Social Security Administration;
- Birth dates for all persons listed on the tax return;
- Wage and earning statement(s) Forms W-2, W-2G, and 1099-R, from all employers;
- Interest and dividend statements from banks (Forms 1099),
- Copies of their prior year federal and state returns, if available.