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Thousands of Illinois workers could 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 (EITC). On average, the credit boosted refunds for eligible Illinois workers by $2,250.
AmeriCorps VISTA members created the Southern Illinois Tax Awareness Campaign specifically to increase knowledge of this credit, which can provide a financial boost to working people in a recovering economy.
Anyone earning $49,078 or less from wages, self-employment, or farming in 2011 should see if they qualify for the EITC. Eligible workers must file federal income tax returns-even if they are not required to file-and specifically must claim the credit to get it.
Unlike other tax credits, both EITC eligibility and the amount of tax credit you are eligible for is based on several factors. These include the amount of your income, or combined incomes if married, whether you have qualifying children and how many. Workers without children also may qualify. According to the IRS, many people will qualify for the first time this year due to changes in their economic, marital, or parental statuses. The agency estimates four out of five eligible workers currently claim their EITC.
The EITC is complex, but worth exploring. Because Illinois has a corresponding State EITC, Illinois residents who claim the federal EITC may also receive an additional credit worth up to $288! State EITC is worth 5 percent of the federal EITC and is fully refundable.
Workers can get free help determining their EITC eligibility and claiming the credit. Many communities have volunteer income tax assistance(VITA) sites. Residents can locate a site by calling the IRS at 1-800-906-9887. Free File, available at www.IRS.gov, lets individuals electronically file their federal returns and claim their EITC using brand name software products.
Thousands of Illinois workers could 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 (EITC). On average, the credit boosted refunds for eligible Illinois workers by $2,250.
AmeriCorps VISTA members created the Southern Illinois Tax Awareness Campaign specifically to increase knowledge of this credit, which can provide a financial boost to working people in a recovering economy.
Anyone earning $49,078 or less from wages, self-employment, or farming in 2011 should see if they qualify for the EITC. Eligible workers must file federal income tax returns-even if they are not required to file-and specifically must claim the credit to get it.
Unlike other tax credits, both EITC eligibility and the amount of tax credit you are eligible for is based on several factors. These include the amount of your income, or combined incomes if married, whether you have qualifying children and how many. Workers without children also may qualify. According to the IRS, many people will qualify for the first time this year due to changes in their economic, marital, or parental statuses. The agency estimates four out of five eligible workers currently claim their EITC.
The EITC is complex, but worth exploring. Because Illinois has a corresponding State EITC, Illinois residents who claim the federal EITC may also receive an additional credit worth up to $288! State EITC is worth 5 percent of the federal EITC and is fully refundable.
Workers can get free help determining their EITC eligibility and claiming the credit. Many communities have volunteer income tax assistance(VITA) sites. Residents can locate a site by calling the IRS at 1-800-906-9887. Free File, available at www.IRS.gov, lets individuals electronically file their federal returns and claim their EITC using brand name software products.
