Montgomery citizens who work but don't earn a lot of money may be eligible for the Earned Income Tax Credit (EITC), as well as free help preparing their tax return.
The EITC is the federal government's largest program benefiting working families.
January 31 is EITC Awareness Day, a nationwide effort to increase public awareness about EITC and free tax preparation sites.
The new maximum credit is $4,716 for a family with two or more children; $2,853 for a family with one child and $428 if there are no children.
The new income limits are:
-$37,783 ($39,783 if married filing jointly) for families with two or more children
-$33,241 ($35,241 if married filing jointly) for families with one child
-$12,590 ($14,590 if married filing jointly) if there are no children
Investment income must be $2,900 or less. Children must meet certain age, relationship and residency requirements.
The EITC is a valuable but complex tax break for lower income workers. Workers who qualify for EITC also may qualify for free tax preparation assistance.
Free tax help is available at the following location for those whose 2007 income was under $40,000 or who file a fairly simple tax return.
Lilly Baptist Church
820 Hill Street
Montgomery, AL 36108
Kickoff: Saturday, February 2, 2008 9:00 a.m. to 1:00 p.m.
Weekly Hours: Saturdays, 9:00 a.m. to 1:00 p.m.
Please call (334) 269-2592 for an appointment.
People should come to the site prepared with the following items:
-Proof of identification
-Social Security Cards (or Individual Taxpayer Identification Number, ITIN) for you, your spouse and dependents and/or a Social Security Number verification letter issued by the Social Security Administration.
-Birth dates for you, your spouse and dependents on the tax return
-Current year's tax package if you received one
-Wage and earning statement(s) Form W-2, W-2G, 1099-R, from all employers
-Interest and dividend statements from banks (Forms 1099)
-A copy of last year's Federal and State returns if available
-Bank Routing Numbers and Account Numbers for Direct Deposit
-Total paid for day care provider and the day care provider's tax identifying number (the provider's Social Security Number or the provider's business Employer Identification Number)-Information for other income
-Information for deductions/credits
-To file taxes electronically on a married filing joint tax return, both spouses must be present to sign the required forms.
For other free tax help site locations, Dial 2-1-1 in Alabama or call the IRS at 1-800-829-1040 toll-free.
Free tax is available for those whose 2007 income was under $40,000 or who file a fairly simple tax return.
Sites are staffed by local volunteers who have been trained and tested by the IRS.