IRS Seeking EIC Families!!!

[blue_zombie]

Important tax information from your friendly local accountant!

http://www.desmoinesregister.com/art.../1029/BUSINESS

The Internal Revenue Service is making special efforts this year to get more lower income taxpayers to claim the Earned Income Tax Credit.

As many as one in four eligible taxpayers typically fails to claim the credit, which amounted to an average of $2,000 last year for claimants, the IRS said last week.

Eligible taxpayers who fail to claim the credit fall into several groups, which include rural residents, childless workers, the homeless, non-traditional families and non-English speakers, the agency said.
Advertisement

As a general rule, eligibility guidelines for the Earned Income Tax Credit require an adjusted gross income of less than:

- $38,646 for an individual with two or more qualifying children, or $41,646 for a married couple with two or more children.

- $33,995 for an individual with one child; $36,995 for a married couple with one child.

- $12,880 for an individual with no children; $15,880 for a married couple with no children.

The maximum credit for a family with two or more children is $4,824; with one child, $2,917; with no children, $438.

People who consistently fail to claim the credit are people whose incomes are so low - below $17,000 - that they are not required to file tax returns. By not filing returns, those people fail to claim the credit, which they could receive as a refund, if they filed, the IRS said.

Two other groups that often fail to claim the credit are people who work but don't have children and older people who are raising grandchildren. People older than age 65 are generally not eligible, but can be eligible if they are raising grandchildren.

The IRS is urging taxpayers to seek help in determining if they are eligible for the Earned Income Tax Credit. They can do that by checking with one of nearly 12,000 volunteer tax preparation sites nationwide. To find a site, go to www.irs.gov or call (800) 906-9887.

In Iowa last year, 185,000 families claimed around $331 million from the credit; nationally, 24 million taxpayers claimed about $48 billion.

[Dakota Valkyrie]

EIC lets you get back more than you paid in. Free money! Gotta love it.

If you are a cranky spoilsport, it's welfare for workers. I don't mind if the working poor take some of my tax dollars. Beats the hell out of handing it out willy-nilly to Jerry Springer guests.

[rebel450]

Yes, this is true, but on the other side of the coin, The EIC triggers the most audits. Gotta love um!

[blue_zombie]

What do you do rebel if you don't mind me asking?

[Peeperann]

Thanks Blue for putting this out here. A lot of people aren't aware that they qualify for this credit and miss out on a lot of money that can help their families!

[rebel450]

What do you do rebel if you don't mind me asking?

I own a metal spinning business and also operate a tax business out of my home for the last 25 years plus and work for a tax firm. In my spare time I am here. Thanks for asking bz!

[blue_zombie]

Awesome-ness Rebel! :) I'm an accountant. I do taxes of all kinds, and audits, mostly not-for-profits, I love it! I'm working on my CPA....I probably will be for the next 4 years! LOL Glad I'm not the only one with the numbers sickness! ;)

[Dakota Valkyrie]

You have spare time?

Most folks that qualify for EIC don't have much to fear from an audit, do they?

I once got a state audit because my daycare expenses were so far out of line with my income. Wasn't hard to verify, though. I was happy to prove that I prefered work to welfare... whatever the cost.

[rebel450]

Awesome-ness Rebel! :) I'm an accountant. I do taxes of all kinds, and audits, mostly not-for-profits, I love it! I'm working on my CPA....I probably will be for the next 4 years! LOL Glad I'm not the only one with the numbers sickness! ;)

That is great blue zombie. It is an addiction (just like DD) Do you have visions of figures dancing in your head all the time? Glad to know, there is someone here, in case I run into one of them unique tax situations. Good for you, going for your CPA. (big bucks to be made there)

[rebel450]

You have spare time?

Most folks that qualify for EIC don't have much to fear from an audit, do they?

I once got a state audit because my daycare expenses were so far out of line with my income. Wasn't hard to verify, though. I was happy to prove that I prefered work to welfare... whatever the cost.

EIC, is a funny little credit. There are some people that try to claim it, if they are not entitled to it. Usually its the one's that are both trying to claim it for the same child. Of course, then it gets into a pissing contest with the 2 and the IRS. Massachusetts( MA overs 15% of the federal EIC) audit rate on EIC, is every other one that I submit.
I could go on and on. It is sad, because there are people that really need it.
Daycare is so expensive, but they normally do the % based on income. Of course they forget, that there is also non taxable that helps people out (child support)
Now, the best of all, is the Due Diligence penalty for tax preparer's. I can be fined 1,000.00 if I knowingly try and give this credit to someone who is not entitled to. I have to fill out a four page worksheet and it has to be signed by the client to cover my butt. Also if the client is found to be not worthy of it, they have to pay it all back and a fine and they are prohibited to take it for 10 years.
Isn't it a great credit though?

[rebel450]

You have spare time?

Most folks that qualify for EIC don't have much to fear from an audit, do they?

I once got a state audit because my daycare expenses were so far out of line with my income. Wasn't hard to verify, though. I was happy to prove that I prefered work to welfare... whatever the cost.

oops, no spare time, but I make it.