Earned Income Tax Credit

Finance
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The IRS is raising awareness about a tax credit to help low and moderate income families save money this filing season.

This is the 10th annual EITC Awareness Day, and although this tax credit has been around for 40- years, the IRS says it’s a credit that tends to get overlooked. Fox 25/48’s Abigail Hantke has more on how the earned income tax credit can help put extra money back into your pockets.

Its tax filing season and every dollar back can count. The IRS is raising awareness about the earned income tax credit, which helped around 384,000 Wisconsin families last year, who make less than
$54,000.

“A lot of times it’s overlooked. Four out of five claim the EITC credit, we want 5 out of 5 people to claim the EITC credit.”

It’s a credit for both individuals and families.

“The highest credit that you can get is if you have three kids or more. However if you two kids, a kid or no kids at all, you can still qualify for the credit if you meet the requirements.”

The average EITC credit claimed in Wisconsin last year was more than $2000 dollars.

Last year, in Eau Claire and Chippewa counties, around 108,000 families took advantage of the credit, bringing back $22,000,000 to the community.

“Anytime individuals receive money, then they’re able to go out and spend it on the items from the local stores, purchase the food, purchase their family needs, so it really does have a domino effect.”

The EITC credit also offers people the ability to get their taxes done for free with the Volunteer Income Tax Assistance program, which UW-Eau Claire has offered for more than 20 years.

“We have quite a large clientele base. We see many tax payers every year and then each year we also pick up additional tax payers.”

Thalacker says in the last couple years, they’ve prepared more than 1200 returns.

There are several requirements for the EITC credit and each year the eligible population changes by 30 percent.

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