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February 2004 News News page Archive

Earned Income Credit: Extra Money for People Who Work

The EIC is a special tax benefit for working people who earn low or moderate incomes in 2003. Workers who qualify for the EIC and file a federal tax return can get back some or all of the federal income tax that was taken out of their pay during the year.

Who qualifies for the Earned Income Credit (EIC)?
Workers who were raising one child in their home and had family income of less than $29,666 (or $30,666 for married workers) in 2003 can get an EIC of up to $2,547.

Workers who were raising more than one child in their home and earned less than $33,692 (or $34,692 for married workers) in 2003 can get an EIC up to $4,204.

Workers who were not raising children in their home, were between ages 25 and 64 on December 31, 2003, and had income below $11,230 (or $12,230 for married workers) can get an EIC up to $382.

Workers who did not claim the EIC in past years but would have been eligible for the credit can still file for the last three years.

Which children qualify for the EIC?

Sons, daughters, stepchildren, grandchildren and adopted children

Brothers, sisters, stepbrothers, or stepsisters--as well as descendants of such relatives--if they were cared for as members of the family.

Foster children who are placed with the worker by an authorized government or private placement agency "Qualified children" must live with the worker for more than half of the year. They must be under age 19 or under age 24 if they are full-time students. Totally and permanently disable children of any age.

Child Tax Credit:

Up to $1,000 for each child.

Many working families qualify

File Form 8812

Federal Tax forms:

Washington-Morgan Community Action
218 Putnam Street
Marietta (Internet available)

Washington County Public Library
615 5th Street
Marietta, 373-1057 (Internet available)

1-800-829-1040 IRS customer service
1-800-TAX-FORM (1-800-829-3676) for order forms for tax forms, booklets, information, free filing

Free Tax Assistance:
Seniors served first (sponsored by AARP)
O'Neil Senior Center
333 4th St., Marietta, 373-3914
February 1st to April 15,
Tuesdays and Thursdays 12:30pm - 3:30pm

Guide to Key IRS Forms and Instructions on the Earned Income Credit and Child Tax Credit
Below is information about the IRS forms and instructions taxpayers may need in order to obtain more information about eligibility requirements. They may be ordered at no charge by calling the IRS toll-free at 1-800-829-3676.

IRS Instruction Booklets
IRS instruction booklets for completing an individual tax return include step-by-step directions for taxpayers to determine if they qualify for the EIC or the CTC.

Schedule EIC, workers raising children must attach to their tax return.

Form 8812, “Additional Child Tax Credit”, which workers must attach to their tax return to claim the CTC refund.

IRS Publication 596, “Earned Income Credit”, presents the EIC eligibility rules in great detail and provides many examples of how the rules apply in different family circumstances. Most workers do not need to obtain Publication 596 to figure out if they are eligible.

IRS Publication 972, “Child Tax Credit”, is needed only if the taxpayer is referred to it by the 1040 or 1040A instructions. This will be the case mainly for self-employed workers, church employees or “statutory employees.”

Form W-5; contains eligibility rules for the Advance EIC payment option.

Form 8862, “Information of Claim Earned Income Credit After Disallowance” Workers who are now eligible for the EIC, but who claimed the EIC erroneously in a previous year and were denied the credit by the IRS, may still claim the credit. They must submit this form with their tax return.

Washington-Morgan Community Action Washington and Morgan Counties, Ohio

218 Putnam Street, Marietta, OH 45750 (740) 373-3745
50 W. Third Street, PO Box 398, Malta, OH 43758
(740) 962-3827