Earned Income Tax Credit "EITC"
You or someone that you know could be missing out on thousands of dollars. Each year, residents of Middlesex and Franklin Township lose millions of dollars by not claiming the EITC on their federal and New Jersey state tax returns. The EITC is a federal and state tax credit available to many low-to-moderate income working families and individuals. This credit is not based on taxes withheld from a person's paycheck, but instead on how much total income a taxpayer earned over the course of a year. A low-income family in New Jersey with three or more children could qualify for as much as $5,657 in federal tax credits for the 2009 tax year. These dollars can be turned into savings or invested in the local economy. It can help build the financial assets of a family and move them forward on their path to self-sufficiency. Even though the EITC has been around for many years, many taxpayers are unaware of the tax credits for which they qualify under federal and state tax codes. When taxpayers do claim the credits, they often lose much of their return to high commercial preparation fees, "rapid refund" loans, and check-cashing operations. The opportunity for asset-building is lost or diminished. United Way of Central Jersey is working with the Internal Revenue Service (IRS) and local community based organizations and businesses to help spread the message about the importance of this tax credit. Goals of the EITC campaign are:
You or Someone You Know Could Be Eligible!
If you or someone you know worked full or part-time in 2009, you might be eligible for the Earned Income Tax Credit. Workers who qualify for the EITC and file a federal (and New Jersey State) tax return can receive some or all of the federal income tax that was taken out of their pay during the year. When the amount of the EITC exceeds the amount of income tax owed, the difference is paid back to the filer in the form of a rebate. |
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| In addition to the income requirements, there are additional rules the taxpayer must meet in order to be eligible. For additional information about EITC, please click here. New Jersey Earned Income Tax Credit (NJEITC) The NJEITC is a credit for certain residents who are eligible for the federal EITC. The credit reduces the amount of New Jersey tax owed and may also provide a refund, even if the taxpayer has no tax liability to New Jersey. In 2009 the NJEITC is calculated as 25% of the Federal Earned Income Credit |
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| For specific tax questions, contact the Internal Revenue Service at 1.800.TAX.1040, or the New Jersey Department of Taxation at 1.888.895.9179, or visit their website at www.state.nj.us/treasury/taxation. | ||||||||||||||||||||||||||||
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