Post Content

The federal Earned Income Tax Credit (EITC) delivers up to $5,666 in federal tax credit and $849.90 in state tax credit — a combined $6,515.90 — for eligible taxpayers.

Simply put, the EITC delivers big bucks to low- and moderate-income working families and individuals through a combined federal and state income tax credit.

In a statement issued Jan. 28, Lt. Gov. Timothy P. Murray said that "During these difficult economic times, it is even more important to inform residents about this tax benefit as well as the assistance available to acces the benefits." The Lt. Gov also has a video explainer on the credit at DOR's homepage at www.mass.gov/dor.

It is estimated that 20 to 25 percent of eligible families failed to apply for the tax credit in tax year 2009. Depending on family income and size, individuals and their families may be eligible for thousands of dollars in tax refunds even if they owe no income tax.

Here are some examples of the EITC. An individual with a maximum federal adjusted gross income of $13,460 and no children is eligible for $457 in federal credit and $68.55 in state credit. An individual with adjusted gross income of $35,535 and one child is eligible for $3,050 in federal credit and another $457.50 in state credit. An individual with adjusted gross income of $45,352 and three children is eligible for a federal tax credit of $5,666 and a state credit of $849.50, the maximum credit.

For married couples filing jointly, the adjusted gross income thresholds are about $5,000 higher. Thus, a couple with one child and an adjusted gross income of $40,545 is eligible for $3,050 in federal credit and $457.40 in state credit, while a couple with three children and an adjusted gross income of $48,362 is eligible for the maximum credit.

To assist taxpayers in filing for the EITC, the Massachusetts EITC Coordinated Campaign provides a host of locations at which taxpayers may complete and file their tax return, at no cost. Just click on the link to find the site closest to you.

DOR's website maintains a complete listing of EITC information. So far this filing season, the Commonwealth has paid $39.6 million in EITC to eligible taxpayers.

 

Written By:

Recent Posts

VIDEO: Introducing MassTaxConnect! posted on Aug 24

Take a look at our newest video introducing you to MassTaxConnect, our new, modernized online tax system. Hear from Commissioner Mark Nunnelly and several DOR employees about what to expect come November 30th when we launch MassTaxConnect for business taxpayers, practitioners, and professionals. Get an   …Continue Reading VIDEO: Introducing MassTaxConnect!

What’s New with MassTaxConnect? posted on Aug 13

MassTaxConnect for Massachusetts Business Taxpayers  Available November 30, 2015!   Things are about to get easier and faster for Massachusetts business taxpayers.  MassTaxConnect will replace WebFile for Business later this year and will feature the best of what WFB offers plus state-of-the-art enhancements to make tax   …Continue Reading What’s New with MassTaxConnect?

F.A.Q. Everything you Need to Know about the Sales Tax Holiday posted on Aug 10

Last week the state legislature passed and Governor Charlie Baker signed into law the Sales Tax Holiday that will officially suspend the state’s 6.25% sales tax for the upcoming weekend of August 15th and 16th. State policymakers have passed an annual summer’s sales tax holiday   …Continue Reading F.A.Q. Everything you Need to Know about the Sales Tax Holiday