By
Kenneth Long on January 23, 2012
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You may not know it, but if your income was substantially different last year, you might be eligible for a
refundable tax credit. If you were out of work for a few months or took a major pay cut, you may qualify for extra money in your tax return that you never were eligible for before.
I have personally witnessed it several times in which an individual or family who has never qualified for the Earned Income Tax Credit (EITC) suddenly found that they were eligible for a much higher refund. This refund is much higher when children are involved, but even a single tax filer with no dependents may qualify for a few hundred bucks on top of their normal refund.
The EITC is geared towards lower income families or individuals (those earning less than $49,000 in 2011). It is designed to reward tax filers who worked but did not earn as much as others in the community.
Many tax filers who do their own taxes are not familiar with the EITC and often fail to claim benefits that they qualify for. Fortunately, anyone who fails to claim the EITC has 3 years to file an amended return (Form 1040X) and claim the refund for which they were entitled to.
Several paid tax preparation companies that are very well known offer to take a look at previous years' tax returns. However, the easiest way to claim the EITC for this year or within the last 3 years is to visit your local free Volunteer Income Tax Assistance (VITA) community partner. Their volunteers are trained by IRS and can help you determine if you meet EITC guidelines for a larger refund.
Most VITA partners are associated with a local charity, such as the
Wake EITC Coalition which is organized by
Vision Credit Education and the
Family Resource Center of Raleigh. The Wake EITC Coalition has received funding from IRS, United Way of the Greater Triangle, the City of Raleigh, Republic Bank and this organization.
The easiest way to find your closest VITA site is to call the United Way's community hotline by dialing 211 or by visiting
211.org. Find out what the EITC is and whether you may actually qualify for a higher refund than ever before.