PARSIPPANY, N.J., Jan. 29 /PRNewswire-FirstCall/ -- Jackson Hewitt Tax Service(R) alerts taxpayers that the Earned Income Tax Credit (EITC) can substantially increase a refund for qualifying workers. One of the most commonly overlooked tax credits, the EITC is a special tax benefit for working families and individuals earning less than $41,646 a year.
For example, in 2008 a single parent raising two children and earning $12,200 could qualify for EITC of $4,824, a 39 percent increase in family income. In tax year 2007, approximately 24 million taxpayers received more than $47 billion dollars in EITC*.
"The EITC is a significant refundable credit that can help millions of hard-working taxpayers keep more money in their pockets and boost their annual income," said Mark Steber, vice president of tax resources at Jackson Hewitt Tax Service. "Taxpayers that qualify for this credit and do not file for it may miss out on potentially thousands of dollars. We encourage working families and individuals to visit a knowledgeable tax preparer to learn more about the EITC and how to accurately apply for the benefit if they qualify."
According to the IRS, 20 to 25 percent of taxpayers who qualify for the EITC do not apply for it.* Further, there are millions who claim the credit in error, many of whom may not understand the criteria.
Jackson Hewitt Tax Service offers some guidelines to help taxpayers determine if they qualify for this substantial tax credit. There are several requirements for claiming the EITC, and each is very specific. The maximum refundable credit available for the 2008 tax year depends upon the number of qualifying children in a household.
-- Families with two or more qualifying children can claim up to $4,824 -- Families with one qualifying child can claim up to $2,917
-- Individuals without qualifying children are eligible to claim up to $438
Individuals or married couples who worked during 2008 are eligible for the EITC if their adjusted gross income (AGI) and earned income does not exceed the following amounts:
-- More than one qualifying child claimed: $38,646 ($41,646 if married filing jointly)
-- One qualifying child claimed: $33,995 ($36,995 if married filing jointly)
-- A taxpayer claiming no children: $12,880 ($15,880 if married filing jointly)
Taxpayers with children must ensure that each child:
-- Is a son, daughter, stepson, stepdaughter, eligible foster child of the taxpayer; or a child of one of these relatives
-- Was less than 19 years of age in 2008 (born after 1989) or is a full-time student under 24 years of age
-- Lived with the taxpayer for at least half the year
Taxpayers without children may also be eligible, provided that the taxpayer is:
-- Between the ages of 25 and 65 -- A resident of the United States for more than half of the year
The IRS has declared Friday, January 30, as EITC Awareness Day to help inform taxpayers - especially those who may qualify and do not know it - become more aware of this credit. Jackson Hewitt tax preparers are available nationwide to provide more information and to help qualified taxpayers claim the Earned Income Tax Credit when filing their 2008 income tax return. More information on the EITC, as well as the most commonly overlooked deductions and credits, is available online at http://www.jacksonhewitt.com/DeductionsCredits.
About Jackson Hewitt Tax Service Inc.
Jackson Hewitt Tax Service Inc. , with approximately 6,800 franchised and company-owned offices throughout the United States during the 2008 tax season, is an industry leader providing full service individual federal and state income tax return preparation. Most offices are independently owned and operated. The Company is based in Parsippany, New Jersey. More information may be obtained at http://www.jacksonhewitt.com/. To locate the Jackson Hewitt Tax Service(R) office nearest to you, call 1-800-234-1040.
*According to the IRS, http://www.irs-eitc.info/
Contact:
Ally Gellert
Ketchum (Public Relations)
646-935-3924
