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

Prep Early for Next Tax Season posted on May 20

Filing season is finally over and we know the last thing on your mind is next tax season. But did you know that if given more prep time, you could be saving yourself lots of stress and time? Start planning for next tax season now   …Continue Reading Prep Early for Next Tax Season

DOR’s Participation in the Family Court Workshops posted on Apr 22

Once a month, the Department of Revenue’s Child Support Enforcement (CSE) lawyers and staff volunteer to be a part of the Family Court Workshops for Mothers and Fathers at the Suffolk County Probate & Family Court in Boston. The workshops, a joint venture between community   …Continue Reading DOR’s Participation in the Family Court Workshops

DOR Ruling Favorable in First Circuit Judgment posted on Mar 17

The United States Court of Appeals for the First Circuit issued judgments in the Department of Revenue’s (DOR) favor last month, finding that taxpayers in Bankruptcy proceedings cannot discharge late filed tax returns. The court consolidated two similar cases brought before them involving a total   …Continue Reading DOR Ruling Favorable in First Circuit Judgment