The federal Earned Income Tax Credit (EITC) is the nation’s most effective poverty reduction program.  It promotes work, helps lower-wage families build assets, and boosts the local economy.

The EITC is a special tax benefit for people who worked full- or part-time in 2005.  If you had children living with you, and earned about $35,000, you could qualify.  You could get a smaller Earned Income Credit if you earned about $12,000 in 2005, are between 25 and 64 years old and do not have children living with you.  Income limits for married couples, with or without children, are slightly higher.  Eligible taxpayers who take advantage of the tax credit could end up paying less money on their federal taxes, this year, or they may even get money back from the government!

The credit is now worth more money than ever before — more than $4,400 for some families. But residents must file for it on their tax return in order to receive it.  And it’s easy to do!

The Earned Income Tax Credit can make a real difference in the lives of many workers. Many families who are trying to make ends meet can use the extra money that the EITC provides. Plus, many EITC-eligible families can also receive the Child Tax Credit.   In addition, EITC-eligible families may also qualify for the Child and Dependent Care Credit to help pay child care or dependent care costs.

Dayton area community agencies, in partnership with the IRS, are offering free assistance to people who need help preparing and filing their tax forms.  Click here to find out where to go for help.