Categorized | Business

Many may overlook valuable tax credit

MEDIA RELEASE

More workers could be eligible for a special tax credit this year and not know it. As a result, they may overlook claiming the Earned Income Tax Credit, or EITC, which can put anywhere from $2 to more than $5,600 into their pockets.

People move into and out of EITC eligibility based on changes in their earnings, their parental status or their marital status, according to Frecia Basilio, county Department of Research and Development.

“Many people will qualify this year for the first time due to economic changes in their incomes,” she said.

Basilio encourages anyone who earned $48,362 or less from wages, self-employment or farming in 2010 to see if they qualify. Eligible workers can get their EITC only if they file federal income tax returns – even if they are not otherwise required to file – and specifically claim the credit.

Taxpayers have several choices for free help determining their EITC eligibility and claiming the credit. Many communities have volunteer income tax assistance sites.

There are several volunteer income tax assistance sites on Hawaii Island:

Hilo
* Alu Like (Kulia Like Department), 9 a.m.-1 p.m. Feb. 11-12, 32 Kinoole Street, Suite 102. Call: 961-2625
* Goodwill Industries of Hawaii, Inc., 4-7 p.m., Wednesdays through April 6, 200 Kanoelehue Avenue, Suite 101. Call: 895-7422
* Hawaii Community Assets Office, Appointments available Monday-Wednesday, 8 a.m.-5 p.m., Feb. 3-April 9,
260 Kamehameha Avenue, Suite 212. Call: 808-596-8155

Waimea Shopping Center
* Hawaii First Community Resource Center, By appointment only, 65-1158 Mamalahoa Highway, Suite 2D. Call: 885-6600

Puna
* Pahoa Neighborhood Center, 9 a.m.-1 p.m., Saturdays, Feb. 12-April 9, 15-2710 Kauhale Street. Call: 808-596-8155

Kona
* Goodwill Industries of Hawaii, Inc., 4-7 p.m., Wednesdays through April 6, 74-5599 Luhia Street, E-4. Call: 895-7422

Kohala
* Kohala Intergenerational Center, 11 a.m.-4 p.m., Feb. 12, 54-3853 Akoni Pule Highway, Kapaau. Call: 884-5838

Help also is available at IRS Taxpayer Assistance Centers. Locations are online at www.irs.gov.

To help accurately determine their EITC eligibility and prepare their returns, individuals should bring:

* Photo proof of identification
* Social Security cards for themselves, their spouse and dependents or Social Security number verification letters issued by the Social Security Administration
* Birth dates for all persons listed on the tax return
* Wage and earning statement(s) Forms W-2, W-2G, and 1099-R, from all employers
* Interest and dividend statements from banks (Forms 1099)
* Copies of last year’s federal and state returns, if available
* Bank routing and account numbers for direct deposit of their refunds
* Other relevant information about income and expenses
* Amounts paid for day care, if applicable and the day care provider’s identifying number.

To electronically file their returns and get the fastest refunds, both spouses must be present to sign joint returns.

“EITC is a financial boost for working people hit by hard economic times. This is money that can make their lives a little easier, especially families with three or more children who get an extra boost with a larger credit this year,” Mayor Billy Kenoi said.

One Response to “Many may overlook valuable tax credit”

  1. Lisa says:

    nice, thanks for the numbers. I think I may qualify this year for the first time ever.

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