New Earned Income Credit

The Earned Income Tax Credit (EITC) is an important tool that gives working families who are barely getting by the opportunity to build assets for themselves and the next generation. With the EITC, low-income tax filers can buy textbooks for their children, make repairs to their home or car, and build a cushion of savings for future emergencies. In 2011, the average EITC recipient in Illinois received $2,250 from the federal government and even more from the state—a substantial boost to working families’ assets. Unfortunately, one in five eligible tax filers do not claim the EITC, missing a chance to invest in their future. Today is Earned Income Tax Credit Awareness Day, organized by the IRS to encourage workers to file for the EITC and let them know about free tax preparation options available to them.

EITC eligibility is based on several factors, including the amount income and number of dependents you have. Workers without children may also qualify. The online EITC Assistant can help determine your eligibility and estimate the amount of your credit. Free help preparing your return and claiming EITC is available at volunteer income tax assistance sites. To locate a volunteer site, call 311 or call the IRS at 1-800-906-9887.

If you know or work with individuals who may be eligible for the Earned Income Tax Credit, please let them know about the opportunities available. The IRS has compiled a toolkit to help people spread the word.

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