TAX CREDIT

Earned Income Credit Program For Tax Year 2007

Each year, from the first Monday in February until tax forms are due (April 15), Samaritan Center makes available a tax assistance program aimed at helping low income persons procure tax credits that will increase their actual income. The earned income credit (EIC) is for people between the ages of 25 and 65 whose income is in one of the following ranges.

No qualifying children                        Single                                      < $12,500 in 2007

                                                            Married filing jointly               < $14,590

One qualifying child                           Single                                      < $32,241

                                                            Married filing jointly               < $35,241

Two or more qualifying children        Single                                      < $37,783

                                                            Married filing jointly               < $39,783

The maximum credit for a single person is $428.00

See IRS Table for details. (Publication 596, p42-47.)

Samaritan Center publicizes and promotes the program through flyers to clients, PowerPoint slides, inquiry of potentially eligible clients when they go through intake. Also newsletter articles, press releases, etc. are addressed to the public. Also a mailing is made to all pastors in the community.



If a client is eligible for the federal Earned Income Tax Credit or the state Property (& Renters) Tax Credit, they must apply for these credits or else they will not be eligible for cash type assistance (for example, utility assistance) from the Samaritan Center. They will be eligible for food, clothing, medical and other non-cash assistance. This policy became effective February 15, 2004.

Volunteer aides are recruited to work with clients in the preparation of their claims. During the intake process clients are scheduled for an appointment with an aide and given written instructions as to what to bring to the appointment.

Note: Persons may receive their EIC with each pay check by filing a W-5 form with their employer. EIC may be claimed for past years (up to three) by filing a form 1040X.

            Resources:

·         IRS forms

·         IRS EITC information site. (http://www.irs.gov/individuals/article/0,,id=96406,00.html)

·         IRS instructions. Publication 596

·         IRS student Tutorial on EITC (http://www.irs.gov/app/understandingTaxes/servlet/IM09rp)

·         IRS teacher lesson plan on EITC. (http://www.irs.gov/app/understandingTaxes/jsp/hows/lp/IM09lp.jsp)

·         Your Federal Income Tax for Individuals, Publication 17 (333pp). (www.irs.gov/pub/irs-pdf/P17.pdf)