Earned Income Tax Credit
Many disabled taxpayers and parents of disabled children may be overlooking a valuable tax credit that could boost their tax refunds by up to $5,600 or more – even if they are not required to file federal income tax returns. The IRS says one in four eligible taxpayers miss out on the Earned Income Tax Credit – or EITC – because they don't check it out.
The credit has been making the lives of working people a little easier for 35 years. Yet it remains little known, possibly because people move into and out of eligibility as their income, marital statuses and parental statuses change.
You may qualify if your income was under $48,000 last year and you, or your spouse, worked or received disability retirement benefits under an employer plan and were under the minimum retirement age, or if you worked and care for a disabled child. The amount of your EITC depends on several factors, such as the amount of your earned or disability income, your filing status, whether you have children and how many, etc.
To get the credit, you must 1) file a federal income tax return and 2) claim the credit. Many communities have volunteer income tax assistance sites or local IRS Taxpayer Assistance Centers, which will compute your EITC and prepare your return without charge. To locate a volunteer site, call your community’s 211 or 311 number for local services or call the IRS at 1-800-906-9887.
Some states have a similar tax credit, increasing the dollars due eligible EITC recipients.
EITC information is available in alternative formats for people with print disabilities at www.irs.gov. Follow the homepage link to “Accessibility”, then the link to “Accessible IRS Tax Products” and select the appropriate link to download accessible forms or Publication 596, Earned Income Credit. The IRS web site provides accessible electronic files in formats including: ASCII Text (.txt), Braille Ready Format (.BRF), and Talking Tax forms in PDF that work with MSAA compliant screen reading software and Braille display devices.