Missouri Ag Connection - EITC Awareness: Get it Right with Tax Help

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EITC Awareness: Get it Right with Tax Help
Missouri Ag Connection - 02/12/2016

Workers may get a larger tax refund this year because of the EITC or Earned Income Tax Credit. However, to get it, you must file a tax return and claim it according to Nellie Lamers, family financial education specialist with University of Missouri Extension.

This year, the IRS is promoting EITC by providing information on other refundable tax credits including the Premium Tax Credit, American Opportunity Tax Credit and the Child Tax Credit.

In 2015, about 509 thousand workers in Missouri received more than $1.2 billion in EITC refunds.

Any person that worked during 2015 and had income of less than $53,267 should check on their eligibility for EITC. EITC can mean up to a $6,242 refund when you file a return and have qualifying children. Workers without a qualifying child could be eligible for a smaller credit up to $503. On average, EITC adds $2,400 to refunds.

"One-third of the EITC population changes each year. The IRS estimates that four out of five workers claim the EITC they earned. This leaves billions of dollars on the table. We want to get the word out to those who are eligible to file a tax return even if they do not owe any tax to claim the EITC. It is money workers can use for groceries, rent, utilities and other bills," said Lamers.

EITC is complex. It varies by income, family size and filing status. To be eligible, a person must have earned income (from working for someone or yourself) or have certain disability income.

Volunteers - trained by the Internal Revenue Service - can help a person learn if they qualify for the EITC and other refundable tax credits. Volunteers at VITA, Volunteer Income Tax Assistance sites, also prepare and e-file (electronically file) a tax return at no cost to you.

"Our community volunteers help you get EITC and the maximum refund you are due. Our goal is to help you get it right. This is money you can save or use to pay off bills, buy that car to get to work or make a down payment on a home," said Lamers.

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