19-01 Federal Tax Credits and No-Cost Tax Filing Assistance

Español
A A

Main Navigation

Issuances By Year

WS 19-01

January 22, 2019

Basic & Expanded Services

Expires: Continuing


To:	Career Offices
From:	Mike Temple Brenda Williams Lucretia Hammond
Subject:	Federal Tax Credits and No-Cost Tax Filing Assistance

Purpose

To promote and provide updated information on federal tax credits and no-cost tax filing assistance for TANF recipients and other low-income workers.

This issuance replaces WS 18-01 Federal Tax Credits and No-Cost Tax Filing Assistance.

Background

The Earned Income Tax Credit (EITC) is a federal income tax credit for low-income working individuals and families.

The Child Tax Credit (CTC) is a federal income tax credit for low-income working families with one or more children.

The EITC and CTC often result in a refund to low-income households who file a return.
To qualify for these credits, taxpayers must file a tax return, even if they did not earn enough money to be obligated to file a tax return. A qualifying taxpayer must file a return and claim applicable credits in order to receive them.
EITC and CTC refund payments do not count as income when applying for or renewing benefits like Supplemental Nutrition Assistance (food stamps), Supplemental Security Income (SSI), Medicaid, Temporary Assistance for Needy Families (TANF) cash assistance, or public housing.

The Volunteer Income Tax Assistance (VITA) program offers free tax help for low-to-moderate income households (generally, those that made $54,000 or less), persons with disabilities, the elderly and limited English speaking taxpayers who need assistance in filing a federal tax return. VITA sites are generally located at community and neighborhood centers, libraries, schools and shopping malls. Most locations also offer free electronic filing. A list of VITA sites is available on the IRS Website at List of VITA Sites or by calling 1-800-906-9887.

Promoting the Credits

Career office contractors and managers will make sure the staff promotes the tax credits to customers who are tagged in TANF/Choices and who are working or have worked during the past year.

The Internal Revenue Service (IRS) has created a flyer that can be share with customers and displayed in the resource room. The flyer, in multiple languages, is available at Earned Income Tax Credit Flyer.

Action

Make sure all offices display the EITC flyer in resource rooms.
Make sure all office managers, supervisors, personal service representatives, employment counselors and other appropriate staff are aware of the EITC and where customers can go for free tax help.
Make sure staff promotes the use of the tax credits, and tax filing, to individuals tagged in TANF/Choices who are working or have worked during the past year.

Questions

Staff should ask questions of their supervisors first. Direct questions for Board staff through the Submit a Question link.

Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) Eligibility Chart
EITC				CTC
Income
Income Limits and EITC Amount
Children	Single	Married	EITC up to:	Must earn more than $2,500 Credit up to $2,000 per child Investment income — no limits
None	$15,270	$20,950	$519
1	$40,320	$46,010	$3,461
2	$45,802	$51,492	$5,716
3 or more	$49,194	$54,884	$6,431
Investment income — $3,500
Sources of Income
Wages, salary, tips, employer-based disability, self-employment earnings, military combat pay, union strike benefits
Taxpayer ID Number
Valid social security number that permits work in the U.S. for tax filer, spouse, and children				Valid social security number (SSN) or Individual Taxpayer Identification Number (ITIN) for tax filer and spouse; children must have a SSN

Filing Status
Cannot be married filing separately				Any
Age Requirement
Must be between 25 and 64 years of age (workers without children)				Any
Child Qualifications (workers with children)
Relationship
Son, daughter, grandchild, stepchild or adopted child Younger sibling, step-sibling, half-sibling, or their descendent Foster child placed with the worker by a government agency
Residency
Must live with the worker in the U.S. for more than half the year				Must live with the worker in the U.S. for more than half the year. Exception: A non-custodial parent who is permitted by a divorce or separation agreement to claim the child as a dependent.
Age of Child
Under 19, under 24 if a full-time student, or any age if totally and permanently disabled				Under 17
Dependency
Not required (except for a claim by a married parent who separated from his or her spouse during the first half of the year)				Children claimed must be considered a dependent for tax filing purposes
Tax Forms
Form 1040 Schedule EIC (workers with children)				Form 1040 Schedule 8812 “Additional Child Tax Credit”

Return To Top