Tax time is here and as you prepare your return or plan for your tax whithholdings for 2010, we've provided a couple of resources that would be a great benefit for those that qualify.
IRS FREE TAX FILING
If possible, take advantage of the IRS free tax filing. The IRS and its private-sector partners are again making Free File available for the 2010 tax season (for 2009 income). Eligible taxpayers receive free use of helpful tax preparation software and free electronic filing of their federal tax returns. Free File can make it easier for employees to find all the credits and deductions they are due. Taxpayers go through www.IRS.gov/freefile to access the free options.
EARNED INCOME TAX CREDIT
Some taxpayers are overlooking a valuable tax credit that could make their lives a little easier. The IRS estimates that up to one in four taxpayers who qualify for the Earned Income Tax Credit – or EITC – fail to claim the credit.
You may qualify if your income was under $41,646 last year and you, or your spouse, had income from wages, self-employment, farming, or, if under the minimum retirement age, from disability retirement benefits paid under an employer plan. The amount of your EITC could be as much as $4,824 or as little as $1 and depends on several factors, such as how much you earned, your filing status, whether you have children, etc.
To get the EITC you earned, you must 1) file a federal income tax return and 2) claim the EITC.
You may prefer to get some of next year’s EITC throughout the year, rather than wait and get EITC after you file your tax return. To get EITC, complete Form W-5 and give the lower part of the form to us. Keep the top part for your records. For more information, see Advance EITC Questions and Answers.
Some taxpayers are overlooking a valuable tax credit that could make their lives a little easier. The IRS estimates that up to one in four taxpayers who qualify for the Earned Income Tax Credit – or EITC – fail to claim the credit.
You may qualify if your income was under $41,646 last year and you, or your spouse, had income from wages, self-employment, farming, or, if under the minimum retirement age, from disability retirement benefits paid under an employer plan. The amount of your EITC could be as much as $4,824 or as little as $1 and depends on several factors, such as how much you earned, your filing status, whether you have children, etc.
To get the EITC you earned, you must 1) file a federal income tax return and 2) claim the EITC.
You may prefer to get some of next year’s EITC throughout the year, rather than wait and get EITC after you file your tax return. To get EITC, complete Form W-5 and give the lower part of the form to us. Keep the top part for your records. For more information, see Advance EITC Questions and Answers.
Many communities have volunteer income tax assistance sites or local IRS Taxpayer Assistance Centers, which will compute your EITC and prepare your return without charge. To locate a volunteer site, call your community’s 211 or 311 number for local services or call the IRS at 1-800-906-9887. Locate an IRS Taxpayer Assistance Center in the blue pages of your telephone directory.
Find more information at www.irs.gov/EITC . The online EITC Assistant can help you determine your eligibility and the amount of your credit.
Find more information at www.irs.gov/EITC . The online EITC Assistant can help you determine your eligibility and the amount of your credit.
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