Credit Guide

Helping Working Families with the Earned Income Tax Credit
Written by: Michael Saunders
Feb 19, 2006

Card Consolidation Credit Debt In the past, clients of NORWESCAP's Family Self-Sufficiency program in Morris County, NJ have used the tax return they received through the Earned Income Tax Credit (EITC) for a down payment on a car, a security deposit on an apartment or to pay debts, said Penny Olson, the program's director.

Credit Union For clients of Homeless Solutions, which provides affordable and transitional housing, the prospect of a large tax return can make a significant difference, executive director Elizabeth Hall said.

Income earned by working for it. Interest, dividends and other kinds of profits are examples of unearned income. Earned income credit. A tax credit available to individuals with low earned income. An individual is entitled to the full amount of this credit even if it exceeds the amount of tax otherwise due. Employee stock ownership plan (ESOP). sharing plan in which benefits come in the form of stock in the employer.

Merchant Credit Guide Co Those agencies are part of an effort to encourage low-income working residents to ask about the EITC when they file their 2005 taxes. The earned income tax credit is supposed to help low-income working families, but over the years it has been clear many eligible workers don't apply for it.

Unfortunately, working can affect your benefits. But you may be better off financially if you work, and ita s also a great way to get out and socialise with other adults. If you work more than 16 hours a week and are on a low income, you can claim the Working Families Tax Credit. This tax credit is available to working families who are responsible for at least one child aged under 16 years old ( time education). You can pick up a claim pack from your nearest Jobcentre Plus office.

Apply Online For Credit Card The Earned Income Tax Credit is for working families with incomes less than $37,263. If eligible, they may receive money back from the Internal Revenue Service (IRS) even if they don't owe taxes - but they must file a tax return. The EITC is above and beyond any amount the families get from the child tax credit, which is a maximum of $1,000 per child and is aimed mainly at middle income households.

Schedule EIC (Form 1040A or 1040), Earned Income Credit A special tax credit, known as the earned income credit or EIC, income taxpayers who have at least some earnings from personal services during the year. In order to be eligible for the EIC, you must earn at least $ employment, and meet other income requirements.

By Card Credit Debt Debt Guide Across the nation, about 21 million people claimed the credit last year, pulling in $39 billion, according to the IRS. Although only about 75 percent of eligible filers claimed their due, the federal program - which was created in 1975 under President Ford and later expanded under Presidents Reagan and Clinton - has eclipsed welfare as the main source of cash assistance for low-income families.

Read the family finance guide from Moneynet.co.uk, providing information on family finance issues such as child trust funds (CTF's) and child tax credits.

Credit Repair To help out, the IRS has set up something called the EITC Assistant on its Web site to provide information, eligibility worksheets and explanations of the credit.

Active Credit Credit Guide A variety of organizations sponsor Volunteer Income Tax Assistance (VITA) sites in their communities to prepare tax returns for those who cannot prepare their own yet cannot afford professional help.

Credit Score In concert with the IRS e-file program, whose goal it is to receive 80% of all tax returns electronically by 2007, www.Taxhead.com is encouraging low-income and first-time tax filers to try eFile in 2006 (filing 2005 tax returns).

Bad Car Credit Guide Loan An executive from Taxhead.com said, "We are trying to reach those persons that qualify for the earned income tax credit. Our tax software has always been free to use. In other words you can prepare your taxes for free and mail them to the IRS. But if you want to gain the benefits of eFile, or electronic filing, we charge a small fee of less than ten dollars."

Bad Credit Loan Michael Saunders is the editor of HandsNet - a Human Services News Website. Get more EITC Resources on HandsNet.

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Michael
Saunders is the editor of HandsNet - a
Human Services News Website.  Get more EITC
Resources on HandsNet.

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