Texans Get Help Filing for Earned Income Tax Credit

AUSTIN - Qualifying Texans can benefit from the Earned Income Tax Credit
(EITC), which allows lower-income individuals and families to pay less or no
federal income tax, or receive cash payments. The Texas Workforce Commission
(TWC), through Workforce Solutions Upper Rio Grande, offers tax preparation
assistance to help qualified taxpayers benefit from EITC. The deadline to
file income tax returns is April 15.

The Internal Revenue Service (IRS) estimates that in Tax Year 2007, more
than 2.2 million Texans claimed more than $5.1 billion in EITC funds
statewide; the average refund was $2,260. In recent years, Texas has ranked
first in the nation in the number of EITC dollars that taxpayers claimed.
However, the IRS estimates that up to 25 percent of Americans who qualify
for the credit fail to claim it on their tax returns, despite the credit's
availability.

Claimants receiving Unemployment Insurance in Calendar Year 2008 will
receive an EITC insert, along with their 1099 tax form from TWC. Many
workforce boards have placed links to the IRS EITC Web site on computers in
workforce center resource rooms, along with links to the Texas Comptroller's
Web site, http://www.window.state.tx.us/taxinfo/eitc/, which provides
information on EITC and local Volunteer Income Tax Assistance sites across
Texas.

Under certain limitations for 2008, individuals may qualify if their
adjusted gross income is less than:
. $38,646 ($41,646 married filing jointly) with more than one
qualifying child;
. $33,995 ($36,995 married filing jointly) with one qualifying child;
. $12,880 ($15,880 married filing jointly) with no qualifying
children.

The maximum credit for 2008 is as follows:
. $4,824 with two or more qualifying children;
. $2,917 with one qualifying child;
. $438 with no qualifying children.

Investment income must be less than $2,950 for the year.

EITC has no effect on certain public assistance benefits. In most cases, the
credit payments will not be used to determine eligibility for Medicaid,
Supplemental Security Income, food stamps, low-income housing or most
Temporary Assistance for Needy Families payments.

"The Earned Income Tax Credit is a relief strategy designed for low-income
families," said Luis Rivera, board chair for Workforce Solutions Upper Rio
Grande. "The only way to benefit from this opportunity is for those who are
eligible to file."

Congress originally approved the tax credit legislation in 1975 to provide
an incentive to work and to offset Social Security taxes.

More information on EITC can be found by contacting local workforce board
representatives at www.texasworkforce.org or at www.irs.gov.