February 26, 2013

State of Alabama
Press Release: Human Resources, Department of

Qualified Individuals and Families Encouraged to File for Earned Income Tax Credit

The Department of Human Resources is making every effort to notify as many qualified people as possible of the Earned Income Tax Credit.  The Earned Income Tax Credit, sometimes called EITC, is a tax credit to help you keep more of what you earned. It is a refundable federal income tax credit for low to moderate income working individuals and families. Congress originally approved the tax credit legislation in 1975 in part to offset the burden of social security taxes and to provide an incentive to work. When EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.

To qualify, you must meet certain requirements and file a tax return, even if you do not owe any tax or are not required to file.

Earned income and adjusted gross income must each be less than:
·    $45,060 ($50,270 married filing jointly) with three or more qualifying children
·    $41,952 ($47,162 married filing jointly) with two qualifying children
·    $36,920 ($42,130 married filing jointly) with one qualifying child
·    $13,980 ($19,190 married filing jointly) with no qualifying children

Tax Year 2012 maximum credit:
·    $5,891 with three or more qualifying children
·    $5,236 with two qualifying children
·    $3,169 with one qualifying child
·    $475 with no qualifying children

Posters and pamphlets have been mailed to counties and should be available in waiting rooms in county offices along with flyers, information on how to get free tax filing assistance, and detailed information on who is potentially eligible for this tax credit.  These materials are available in English and Spanish. It is important to know that the EITC will not affect eligibility for Family Assistance, Medicaid, Food Assistance, SSI, and public or subsidized housing.

To learn more about whether you qualify and how to file, please visit www.irs.gov/eitc or call 1-800-828-1040.

  • For more information, visit http://dhr.alabama.gov
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