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Are you eligible for credit on taxes?

4 min read
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Jan. 29 does not stand out as a red-letter date on most calendars, but it’s important to the Internal Revenue Service, and they want taxpayers to take note, too.

In tax circles, the date is the 10th anniversary of Earned-Income Tax Credit Awareness Day, and the IRS gave Southwestern Pennsylvania Legal Services a $43,000 grant to let those who are eligible in four counties know they must file a tax return to claim the tax credit.

The earned-income tax filing deadline this year is Monday, April 18, because of the Emancipation Day holiday Friday, April 15, in Washington, D.C.

Last year, there were 927,000 earned-income tax credit claims worth $2.1 billion filed by Pennsylvanians. The average earned-income tax credit in Pennsylvania was $2,227, slightly less than the national average of $2,400.

According to a news release from the IRS, “One-third of the earned-income tax credit population changes each year. The IRS estimates only four out of five workers claim the credit they earned. This leaves billions of dollars on the table each year.

“We want to get the word out to those who are eligible to file a tax return, even if they don’t owe any tax, to claim the earned-income tax credit. It’s money workers can use for groceries, rent, utilities and other bills.”

The IRS acknowledges that the earned-income tax credit is a complex matter that varies by income, family size and filing status, so it has enlisted the aid of Southwestern Pennsylvania Legal Services and similar organizations “to make sure everyone who is qualified for this credit gets this credit,” said Kristie Horrell, staff attorney.

“It’s a refundable credit. You’re getting money back from the government. First, you have to have earned income, which means wages. You can be self-employed or employed by another.”

The irs.gov website also says that having “certain disability income” also qualifies an applicant.

“How you get this credit is by filing your tax return,” Horrell continued, and gave some examples of income requirements.

A single person under age 65 who has no children had to have earned no more than $14,820 in 2015. For a married couple, filing jointly with no children, the maximum earnings would be $20,330.

For a person who has one qualifying child, either claimed by a single person, the head of a household or a surviving spouse, the maximum is $39,131.

The term “child” has its own definition with the IRS. The child must be a son, daughter, stepchild or adopted child. It can be a brother, sister, niece, nephew or foster child if the person or persons filing the tax return have cared for specified relatives or a foster child who has lived in the home of the person filing for more than six months. The child must have been younger than 19 on Dec. 31, 2015, or younger than age 24 on the same date and attending college full time. Or, the filer can claim a child of any age if the child is permanently disabled.

The IRS booklet on eligibility for the earned-income tax credit and related information spans 37 pages.

Legal aid became involved in this matter because it provides answers to low-income people who have tax questions, who face IRS audits or who have received letters from the IRS requesting additional information, making sure the IRS calculated a person’s tax burden correctly, or if the IRS was correct in taking away an earned-income tax credit.

“We represent people in tax court,” Horrell said. “We can help them with their tax problem, but we do not prepare taxes. For income tax preparation, they would have to go to a Volunteer Income Tax Assistance site.” Information about finding VITA is available by calling the free 211 information hub.

Legal aid also warns people to beware of tax scams. Callers using the 229 area code, which is Albany, Americus and Bainbridge, Ga., have threatened people here with jail for unpaid taxes.

“The IRS never calls you,” Horrell said. “Everything is done by letter. Every year there’s a weeklong training with the IRS. We actually talked about those things. This scam has been hitting a lot of people, even at higher levels of authority at the IRS, and they know how everything works there.”

Horrell travels to the legal aid organization’s four offices, and if the person filing the tax return is not available during the day, she can meet with him or her during the evening or on weekends. “We prefer appointments,” she said.

Southwestern Pennsylvania Legal Services, formerly known as the legal aid society, has offices at 10 W. Cherry Ave., Washington, 724-225-6170; 63 S. Washington St., Waynesburg, 724-627-3127; 45 E. Main St., Suite 200, Uniontown, 724-439-3591; and 218 N. Kimberly Ave., Suite 101, Somerset, 814-443-4615.

The organization’s toll-free phone number is 1-800-846-0871.

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