worked full-time, part-time or anytime in 2013?
you may be eligible for federal tax dollars!
If you have been hit by the economic downturn, knowing that you may qualify for thousands of dollars in federal tax credits is great news! Even if you never qualified before, you could be eligible now!
The Earned Income Credit and Child Tax Credit are tax benefits for people who earn low to moderate incomes. If you worked in 2013, then you may be eligible!
How much is the Earned Income Credit (EIC) worth?
· If you lived with a qualifying child* for more than half the year, and you earned less than $37,870 ($43,210 if married), you can claim up to $3,250 in EIC benefits.
· If you lived with two children and earned less than $43,210 ($48,378 if married), you can claim up to $5,372.
· If you lived with three or more children and earned less than $46,227 ($51,567 if married), you can claim and EIC up to $6,044.
· Workers not raising a family may be eligible for up to $487 if they earned less than $14,340 ($19,680 if married) and are between the ages of 25 and 64.
What about the Child Tax Credit (CTC)?
Workers raising children can maximize their tax credit benefits by claiming the CTC, worth up to $1,000 for each child under the age of 17. To be eligible for the CTC, a worker must have taxable earned income above $3,000 in 2013.
Keep the tax credits you’ve earned in your pocket. Instead of paying to get your tax return filed, you can get free help filing your tax return through the IRS sponsored program VITA (Volunteer Income Tax Assistance). VITA volunteers are trained to help workers claim tax credits for which they are eligible.
Understanding the EIC and CTC
Janet, who was laid off this year from her job as a real estate agent, will get the boost she needs from the EIC and CTC. As a single mother of two children, both under the age of 17, Janet earned $41,500 in 2012 and was ineligible to claim the EIC.
Janet worked for six months before being laid off, and was unable to find another job. Her total income during 2013 was $19,250. When she files her tax return, she will receive an EIC worth $4,977.
Janet will also be eligible for a CTC, worth $2,000. These credits offset any income taxes she owes, and she will be able to use the remaining balance from the refund to keep up with her family’s needs.