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IRS designates a day to remember income tax credit

IRS: One in five eligible taxpayers fail to capitalize on $2.2K tax credit

Posted: February 1, 2012 - 1:09am

The Earned Income Tax Credit means a great deal to working families, IRS Director Verlinda Paul said on a teleconference Friday. However, one in five eligible workers fail to claim their credit, she said.

Almost 46,000 Alaskan taxpayers claimed the credit for tax year 2010 returns filed in 2011. The credits totaled $86.6 million with an average credit of $1,890.

Paul admitted to some complexity to determining one’s eligibility. She offered the EITC assessment at www.irs.gov as a tool to help, and also recommended seeking out help from local volunteer tax preparers.

In Juneau a free tax service is provided by the Internal Revenue Service’s Volunteer Income Tax Assistance and Tax Counseling for the Elderly Programs and the Association for the Advancement of Retired Person’s Tax-Aide program.

To contact a tax aide in Juneau email janwatson2000@yahoo.com. Those interested in volunteering can find more information and register at aarp.us/dS7kpd.

Paul also said standard tax-filing software, used by individuals in their homes or by accounting firms can be helpful.

“Most of these services will determine eligibility and compute the amount of the credit,” Paul said.

However, before a taxpayer starts computing anything, there’s one important first step to take.

“Workers must file a tax return to receive the credit,” Paul said. Many of the taxpayers who fail to claim their credit do so by not filing a tax return, she said.

Other people miss out because they do not know they qualify. “Single workers or workers without children often do not know they may qualify,” Paul said.

But there is some good news for those who may have qualified in the past but missed their opportunity. Taxpayers who miss the credit in the past can claim it retroactive for up to three years by filing returns for those years.

• Contact reporter Russell Stigall at 523-2276 or at russell.stigall@juneauempire.com.

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Jo MacNamara
132
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Jo MacNamara 02/01/12 - 07:49 am
0
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beats Bush's massive tax cuts for the rich

At least this tax cut targets those who NEED it. Bush's massive tax cuts for the rich targeted those who LEAST needed it.

madison89
9
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madison89 02/01/12 - 08:45 am
0
0

Jeremia is right, EITC is

Jeremia is right, EITC is nothing more than welfare.
As for the foolishness from the gerbil abuser, W simply gave people back what was rightfully theirs. As opposed to BO who wants to steal what a person has earned, & pass it on to his political allies.

Sync
6
Points
Sync 02/01/12 - 08:49 am
0
0

Double post

Double post

Latitude58
336
Points
Latitude58 02/01/12 - 09:03 am
0
0

Obama wealth distribution scheme?

Let's see... enacted in 1975 under Gerald Ford (R). Significantly expanded in the early 90's under George H. W. Bush (R).

And this is Obama's fault? Do tell.

droog9000
0
Points
droog9000 02/01/12 - 10:19 am
0
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Obama Sucks

I hate that he traveled in a time machine back to 1975 and came up with the Earned Income Tax Credit. Go back to Kenya job-uncreater.

droog9000
0
Points
droog9000 02/01/12 - 10:39 am
0
0

America's Teenage President

Washington 1975 (AP)- Yesterday, President Barry Obama, age 14, enacted the Earned Income Tax Credit. Meanwhile, demonstrators protested that a 14 year old is not eligible to be president.

droog9000
0
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droog9000 02/01/12 - 10:40 am
0
0

double down

double down

akbrdguru
4
Points
akbrdguru 02/01/12 - 11:16 am
0
0

I've heard from a local

I've heard from a local friend who said one of her adult children (single parent going to school) received a refund that nearly equaled their total income for the year. How does that make sense?

Calypso
192
Points
Calypso 02/01/12 - 11:54 am
0
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@guru - because 47% of

@guru - because 47% of Americans don't pay any federal income tax.

kpawsuh
-9
Points
kpawsuh 02/01/12 - 01:21 pm
0
0

Guru, because they dont get

Guru, because they dont get paid jack spit.

madison89
9
Points
madison89 02/01/12 - 07:45 pm
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0

Bill Clinton did not invent

Bill Clinton did not invent lying under oath, but he was guilty just the same.
BO did not invent the EITC, but he is just as guilty of a crime against liberty as Ford.

Latitude58
336
Points
Latitude58 02/01/12 - 08:19 pm
0
0

So that would go for...

...Reagan and GWB as well by that logic, Maddy. Damned socialists!

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