Daily Tax Update - January 27, 2012: IRS Promotes EITC Awareness Day & Free Taxpayer Clinics

IRS PROMOTES EITC AWARENESS DAY & FREE TAXPAYER CLINICS: Today, the IRS launched their annual outreach campaign aimed at helping millions of Americans who earned $49,078 or less take advantage of the Earned Income Tax Credit (EITC).

  • According to the IRS, "The EITC varies by income, family size and filing status. People can see if they qualify by visiting IRS.gov and answering a few questions using the EITC Assistant.  In tax year 2010, almost 26.8 million eligible workers and families received over $59.5 billion total in EITC.  The average EITC amount last year was around $2,200. Workers who earned $49,078 or less from wages, self-employment or farm income last year could receive larger refunds if they qualify for the EITC.  That could mean up to $464 in EITC for people without children, and a maximum credit of up to $5,751 for those with three or more qualifying children.  Unlike most deductions and credits, the EITC is refundable. In other words, eligible people may get a refund from the IRS even if they owe no tax."
  • IRS Commissioner Doug Shulman said, "The EITC provides a financial boost for millions of hard-working Americans.  But people can easily overlook this important credit, especially if their financial situation has changed.  The IRS reminds taxpayers to look into this valuable credit to see if they qualify."
  • The IRS also said today that over 12,000 free tax preparation sites will be open nationwide this year to provide tax preparation services for low- to moderate-income and elderly taxpayers.  According to the IRS, "The IRS Volunteer Income Tax Assistance (VITA) Program offers free tax help generally to people who earn $50,000 and less. The Tax Counseling for the Elderly (TCE) Program offers free tax help to taxpayers who are 60 and older."
  • Taxpayers also can seek free assistance at the 400 IRS Taxpayer Assistance Centers nationwide. Locations nationwide are listed on www.IRS.gov.

As provided for in Treasury regulations, advice (if any) relating to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any plan or arrangement addressed herein.

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