FAQ

What is the EITC?
The Earned Income Tax Credit (EITC) sometimes called the Earned Income Credit (EIC), is a refundable federal income tax credit for low-income working individuals and families. Congress originally approved the tax credit legislation in 1975 in part to offset the burden of social security taxes and to provide an incentive to work. When the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.

To qualify, taxpayers must meet certain requirements and file a tax return, even if they did not earn enough money to be obligated to file a tax return.

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.

How do I know if I qualify for the EITC?
For the 2008 tax year, the thresholds for earned and adjusted gross income (AGI) must be less than:
  • $38,646 ($41,646 married filing jointly) with two or more qualifying children
  • $33,995 ($36,995 married filing jointly) with one qualifying child
  • $12,880 ($15,880 married filing jointly) with no qualifying children.
  • Investment income must be $2,950 or less for the year

Tax Year 2008 maximum credit:
  • $4,824 with two or more qualifying children
  • $2,917 with one qualifying child
  • $438 with no qualifying children.
For more information, visit www.irs.gov/eitc

What is the average EITC return?
The average EITC refund in Central Oregon is $1,700. In total, the EITC brings over $20 million to the tri-county area. Our goal is to reach the 25% of the population who qualify for the EITC but do not file for it. Click here for free filing locations and times in Central Oregon.

What if I don't qualify for the EITC, should I still file taxes?
Yes. You might be due a refund because you had too much taken out of your paycheck last year. OR if you were qualified for the EITC within the last THREE years and didn't claim the credit, you can file an amended tax return for those years. Also, you might qualify for other federal and state credits or deductions.

 Federal Tax Benefits   State of Oregon Benefits
 Child Tax Credit  Oregon EITC
 Child & Dependent Care Credit  Working Family Child Care Credit
 Education Credits & Deductions   College Savings Plans Credit
 First-Time Homebuyers Credit  Elderly or Disabled Credit
 Retirement Savings Credits  

What document do I need to bring with me to the TAKE CREDIT tax site?
Whether taxpayers are seeking assistance at an IRS Taxpayer Assistance Center, a
free income tax preparation site or from a professional tax return preparer, they should
bring certain documents to substantiate their income, deductions/credits, dependents,
etc. These documents include:
  • Valid driver's license or photo identification (self & spouse, if applicable)
  • Social Security cards for all persons listed on the return
  • Dates of birth for all persons listed on the return
  • All income statements: Forms W-2, 1099, Social Security, Unemployment, or other benefits statements, self-employment records and any documents showing taxes withheld
  • Dependent child care information: payee’s name, address and SSN or TIN
  • Proof of account at financial institution for direct debit or deposit (i.e. cancelled/
  • Voided check or bank statement)
  • Prior year tax return (if available)
  • Any other pertinent documents or papers

What is the Advanced EITC?

What about Refund Anticipation Loans?

Will the EITC affect my other government subsidies?



 
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