2010 Income Tax and the Earned Income Tax Credit

January 26, 2011                                                                                             NEWS RELEASE



FROM South Carolina Legal Services Low Income Taxpayer Clinic




JANUARY 28, 2011

            The IRS has established January 28, 2011 as EITC Awareness Day.  Many South Carolina citizens eligible to receive the EITC do not.  For tax year 2010, a working family with three or more qualified children earning can receive up to a maximum of $5,666 in their tax refund.  A single person can receive up to $457 in EITC.  A family with earned income and two children may receive up to $5,036 and a family with one child may receive up to $3,050.  This credit phases out when the Taxpayers have earned income of $35,535 when filing single ($40,545, married filing jointly) for one Qualifying Child; $40,363 filing single ($45,373 married filing jointly) with two Qualifying Children; and $43,352 filing single ($48,362 married filing jointly) with three or more Qualifying Children. 

The requirements for receiving the EITC are understandable and easy to verify.  A Taxpayer must file a Tax Return showing earned income.  A “married filing separate” Tax Return DOES NOT QUALIFY.  A Qualifying Child , on December 31, 2010, must be under the age of 19 or under the age of 24 if a full time college student, must have a valid Social Security Number, must be related to the Taxpayer or placed by an agency, and have lived in the Taxpayer’s home for more than one-half of the tax year.  Neither the Taxpayer nor the Qualifying Child can be a Qualifying Child for another person’s Tax Return. 

To get more information to see if you qualify, go to www.irs.gov and type in “EITC” in the search engine to obtain information and an EITC calculation tool.

For tax year 2008, the most recent year for which data are published, South Carolina residents filed 2,047,201 Tax Returns of which 477,905 were filed with claims for EITC.  The average EITC added to the Taxpayer’s refund was $2,147.  Still, it is estimated that each year as much as $2 million EITC dollars are not claimed by South Carolina residents, often because no Tax Return is filed and sometimes because the Taxpayer does not apply for the EITC.

If you think you might be eligible to receive the EITC, or if you have been denied in the past but want to file to receive the 2010 EITC, or if you have a tax controversy with the IRS, call the South Carolina Legal Services intake number 1-888-346-5592.  South Carolina Legal Services has ten offices across South Carolina, and a Low Income Taxpayer Clinic to help you understand your tax rights and responsibilities, and when there is a federal tax problem to help you talk with the IRS to reach a solution.

Another resource for information is the Taxpayer Advocate Service.  Call 1-877-777-4778 or TTY/TTD: 1-800-829-4059.


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