Have You Heard About A Tax Break for Low Income Workers

With a Grant from the United Way of RI and The RI Community Action Association, Comprehensive Community Action has partnered with the Cranston Department of Senior Services to help promote the Earned Income Tax Credit (EITC) program so that more eligible people receive it, bringing more dollars into our community.

The Earned Income Tax Credit (EITC) is a federal income tax credit for low-income workers who are eligible for and claim the credit. A tax credit is a dollar-for-dollar reduction of taxes owed. Some credits are refundable – taxes could be reduced to the point that an individual would receive a refund rather than owing any taxes. The EITC is money for people who work but don't earn high enough income, and could use the EITC to put food on the table, move into better housing, invest in education, transportation, or save for the future.

Do You Qualify?

The maximum amount of income you can earn and still get the credit has increased in 2006. To claim the EITC, taxpayers must meet the following rules:

• Must have earned income
• Must have a valid Social Security number
• Filing status can’t be "married filing separately"
• Generally must be a U.S. citizen or resident alien all year
• Cannot be qualifying child of another person
• Cannot file Form 2555 or 2555-EZ (related to foreign earned income)

Did you meet the rules? If so, your earned income must be less than:

• $12,120 ($14,120 if married filing jointly) with no qualifying child
• $32,001 ($34,001 if married filing jointly) with one qualifying child
• $36,348 ($38,348 if married filing jointly) with more than one qualifying child
• Special rules may apply for members of the U.S. Armed Forces and taxpayers in designated disaster areas

Do you have children? To be a qualifying child for the credit:

• The child must meet the relationship, age and residency tests described at www.irs/gov/eitc or in Publication 596, Earned Income Tax Credit.
  
  

Need More Information?

The Cranston Senior Center located at 1070 Cranston Street is a Volunteer Income Tax Assistance (VITA) site. Volunteer Income Tax preparers have been trained to help people who qualify for the EITC program to receive the tax credits they deserve. This is a free service.

For more information about the EITC program contact Anne Dorsi at CCAP at 467-9610 ext 167 or the Cranston Senior Services at 780-6000 to schedule an appointment.

For more information about the City of Cranston's Department of Senior Services click here.

To visit the IRS EITC web site click here for English or click here for Spanish.

For more information about any of CCAP's programs and services visit our web site: http://www.comcap. org