A Refundable Federal Income Tax Credit for Low-Income Working Individuals and Families

The Office of Child Support Enforcement, in partnership with the Internal Revenue Service, encourages eligible taxpayers to file for the Earned Income Tax Credit.

What is it?
• The Earned Income Tax Credit (EITC) is a refundable federal income tax credit for low-income working individuals and families.
• The EITC has no effect on certain welfare benefits. In most cases, EITC payments will not be used to determine eligibility for Medicaid, Supplemental Security Income (SSI), food stamps, low-income housing or most Temporary Assistance for Needy Families (TANF) payments.

Pennsylvania and EITC:
In 2012, over 27 million received nearly $62 billion in EITC for the 2011 tax year.
In Pennsylvania, 905,000 received $1.87 billion with an average payment of $2,070.

How do I qualify?
To qualify, taxpayers must meet certain requirements and file a federal tax return, even if they are not obligated to file.
The threshold amounts for 2012 tax returns follow:
• $13,980 ($19,190 married filing jointly) if you do not have a qualifying child
• $36,920 ($42,130 married filing jointly) if you have one qualifying child
• $41,952 ($47,162 married filing jointly) if you have two qualifying children
• $45,060 ($50,270 married filing jointly) if you have three or more qualifying children
The maximum EITC for the 2012 tax year:
• $5,891 with three or more qualifying children
• $5,236 with two qualifying children
• $3,169 with one qualifying child
• $475 with no qualifying children

It is easy to see if you qualify for EITC benefits. The site listed below will answer questions about eligibility, qualifying children and the amount of the EITC payment. http://apps.irs.gov/app/eitc2012/SetLanguage.do?lang=en

Where can I get more information?
If your office is interested in receiving EITC publications or partnering with IRS, please contact partner@irs.gov. Any external questions about partnering will be directed to the proper person in the appropriate territory and the response will be sent to you.
For more information about the Earned Income Tax Credit, including outreach materials and State statistics: http://www.eitc.irs.gov/central/main/

Brochures that you may find particularly helpful include:
• Publication 3211-M: Earned Income Tax Credit (EITC) Qs & As (Multi-lingual) http://www.irs.gov/pub/irs-pdf/p3211en.pdf
• Publication 4156: Life Cycle Series: Birth through Childhood: This brochure covers topics that impact parents of children from birth through the teen years. http://www.irs.gov/pub/irs-pdf/p4156.pdf
• Publication 4449: Tax Information for Non-Custodial Parents: This brochure informs non-custodial parents who are paying child support of special rules which apply to their eligibility to claim dependents and EITC. http://www.irs.gov/pub/irs-pdf/p4449.pdf

There are volunteer sites that help low- to moderate-income (generally, $50,000 and below) people who cannot prepare their own tax returns. IRS-certified volunteers, sponsored by various organizations, receive training to help prepare basic tax returns in communities across the country. These sites are generally located at community and neighborhood centers, libraries, schools, shopping malls, and other convenient locations. Most locations also offer free electronic filing.
http://www.irs.gov/Individuals/IRS-Free-Tax-Return-Preparation-Programs