Did you know you could be eligible to get more money back — as much as $5,666 — from the Internal Revenue Service (IRS) this tax season? That is money you can use to boost your savings, build your assets, and help you pay for other important household and medical expenses.
The Earned Income Tax Credit is a refundable federal income tax credit for working individuals and families who earn low to moderate incomes. In these hard economic times, the EITC can be a financial boost for many workers who saw their incomes drop in 2010 and now qualify for the first time. Still, the IRS estimates only 20 percent of eligible workers claim and receive their EITC refund.
Are You Eligible for the Earned Income Tax Credit?
If you earned less than $48,362 in income last year and have a valid Social Security number, you may qualify for the EITC. The online EITC Assistant on IRS.gov can help determine your eligibility and estimate the amount of your credit. You can file for the 2010 tax year and up to three years prior if you are just learning about the EITC. But don’t forget – if you are eligible and wish to receive the credit, you must file a federal income tax return even if you are not otherwise required to file this tax season.
Get Free Tax Assistance at Your Local VITA Site
Each year, Goodwill partners with the IRS to provide Volunteer Income Tax Assistance (VITA) sites nationwide. VITA sites provide free tax preparation to workers who earn low or moderate incomes and individuals with disabilities, among others. IRS-certified VITA volunteers are ready to help taxpayers like you prepare your tax return and claim the EITC.
Rather than paying for costly tax preparation fees or refund anticipation loans, contact your local Goodwill or call the IRS at (800) 906-9887 to find a VITA site near you. We want to make sure you get quality tax assistance and claim your EITC refund – for free.
Make the Most of Your Tax Refund
What would you do with an extra $5,666? Once you have filed your tax return, take advantage of these opportunities to spend or save your cash wisely:
- Contribute to your savings account. Whether you are opening a new account or adding to your savings, use this extra money to achieve your long-term financial goals.
- Invest in U.S. Savings Bonds. Give a gift to yourself or a loved one that can be cashed in as early as a year.
- Improve your credit and take care of any lingering bills or loans.
- Match your funds with an Individual Development Account (IDA). If you want to reach your savings goals, put your refund into an IDA and watch the amount double over time.
- Put aside money for retirement. Use the extra cash from your tax refund to help you save for your future.
For more information on Goodwill VITA sites and financial services available in your community: