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 Volume 10, Fall 2002 |
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Protecting California CILS Partners on Tax Assistance Project Court Upholds CA Board Member Profile: Home Ownership: Indian Housing Law Practice at CILS CILS Fights to Preserve Indian Organizations Working for You: Indian Child and Family Services CILS Domestic Violence Initiative Tribal TANF Making Great Strides in CA |
CILS Partners on Tax Assistance Project The Earned Income Tax Credit (EITC) can give as much as $4000 to low-income families and individuals with earned income. Every year, however, many qualifying individuals and families fail to file the necessary forms to apply for this federal tax credit, either because they do not know about the EITC or do not know how to ask for the EITC when completing their tax forms. What is the Earned Income Tax Credit (EITC)? The EITC is a federal tax credit for low-income working individuals. The credit lowers the amount of federal taxes an individual owes – and the result is usually a tax refund. The amount of the credit is determined by income and family size. According to the IRS, the EITC generally does not affect eligibility for Medicaid, Supplemental Security Income, food stamps, or low-income housing. Its impact on eligibility for Tribal TANF is determined by the local Tribal TANF program’s rules. Most exclude it from income. How does an individual or family qualify for the EITC? Both your earned income and modified adjusted gross income must be less than a set amount. In 2001, this amount was $28,281 for a taxpayer with one child; $32,121 for a taxpayer with more than one child, and $10,710 for a taxpayer who supports themselves and has no children. See Figure 1 for more information about qualifying for the EITC. What services are available to assist individuals who may qualify for the EITC? CILS’ partner, the Legal Aid Society of Orange County (LASOC), has developed innovative, on-line programs that can help low-income individuals with a variety of issues. With funding from the Internal Revenue Service, LASOC has developed an easy-to use EITC program available on computer that can:
Although most taxpayers will be able to use this new program, not everyone can. If you’ve made mortgage payments, had significant medical expenses, or have incurred other expenses that would require you to file a longer tax return, then you will need additional assistance filling out the EITC form. In these situations, the taxpayer will need to see a licensed tax preparer or call a low-income tax clinic for tax help. Voluntary Income Tax Assistance (VITA) programs are offered by most universities and some government agencies. VITA programs can help middle- and low-income individuals fill out tax forms. CILS is partnering with the LASOC, tribes, and tribal and private social service agencies to ensure that low-income Native Americans have access to this system, and to provide help to those who cannot complete the forms themselves. Other resources: Legal Aid Society of Orange
County: http://www.legal-aid.com |
