Underutilized Cash Assistance:
the Earned Income Tax Credit &
Free Tax Preparation Sites
Did you know that the Earned Income Tax Credit (EITC) lifts more low-income families out of poverty than any other benefit program? The EITC is a “refundable tax credit” for working, low-income individuals and families. Even workers whose earnings are too small to owe income tax can get the EITC. But many don’t know about it and miss out. One must file a tax return to qualify, but those with low income may not file a return and may be unaware that by doing so they are forfeiting this additional income. Not only can one get a tax credit for this year, but applicants may even get tax credits for the previous two years.
Massachusetts also has an Earned Income tax credit (EIC). To get the credit, one needs to file a state tax return. The amount of the credit is based on the amount received on the federal EITC; it gives an extra 15% of the EITC check.
To qualify:
- One must have worked and earned income
- One must have a valid Social Security number
- One cannot be counted as a “child” by someone else
The amount of the EITC depends mainly on family size and income. For tax year 2010:
If your family has
And you earned less than
You can get UP TO
Individual
Married
Federal
Mass.
No “qualifying children*”
$13,460
$18,470
$457
$68.55
One qualifying child
$33,535
$40,545
$3,050
$457.50
Two qualifying children
$40,363
$45,373
$5,036
$755.40
Three or more qualifying children
$43,352
$48,362
$5,666
$849.90
Note: Alimony and child support payments do not count towards income.
*A “qualifying child” can be the applicant’s…
- Biological or adopted child
- Stepchild
- Foster child
- Brother or sister
- Stepbrother or stepsister
…or the children of any of these people
And a “child” must be
- younger than the person claiming the child,
- not have filed a joint return other than to claim a refund AND
- be under 19 unless they are a full-time student under 24 or permanently and totally disabled.
Will getting the EITC affect other benefits?
In Massachusetts getting the EITC and the state tax credit EIC will not affect eligibility for Medicaid, SSI, food benefits, low-income housing or TAFDC. It does not count as “income” in determining eligibility for these benefits.
Free Tax Assistance Sites
Free tax preparation assistance is available for those with low-income. Find a local site on the DTA MassCashBack website: http://masscashback.ehs.state.ma.us/.
For More Information
- Mass. Department of Revenue EIC page
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