As tax season approaches, U.S. Sen. Sherrod Brown (D-OH) reminded all eligible Ohio workers to maximize their tax returns by filing for the Earned Income Tax Credit (EITC). Last year, more than 950,000 Ohioans saved more than $2.1 billion through this federal credit, but thousands of Ohioans miss out on this credit each year by failing to apply.
“The Earned Income Tax Credit program is an important way for Ohio families to get more of their money back at tax time.” Brown said. “With tax day approaching, I want to ensure that each Ohioan receives the biggest refund possible. It is my hope that all Ohio families who qualify for the Earned Income Tax Credit file for it this year.”
The EITC is a refundable tax credit that encourages work, helps families make ends meet, and improves the health and education of children. In 2013, more than 27 million taxpayers received nearly $62 billion in EITC benefits. In 2011, according to the Internal Revenue Service (IRS), the EITC lifted 6.6 million Americans out of poverty, 3.1 million of whom were children – with the average EITC family claiming an average of $2,200. But in contrast to the EITC for working families with children, the EITC for workers without children remains extremely small — too small even to fully offset federal taxes for workers at the poverty line. Under current law, a childless adult or noncustodial parent working full-time can only receive a minimum benefit. Such an individual would receive the maximum EITC if he or she had children. As a result, low-wage workers not raising minor children are the only Americans taxed into poverty.
Following President Obama’s call for extending tax relief to families during his State of the Union Address, Brown called for passage of his Working Families Tax Relief Act of 2013. The Act would permanently extend expanded EITC provisions, while expand the credit to eligible adult workers without children, resulting in a full-time worker at the minimum wage being eligible for the maximum earned income credit amount. Additionally, it doubles the credit rate for individual taxpayers and married taxpayers without children. The increase is indexed to inflation and includes relief from the so-called “marriage penalty.” Brown introduced the Act in with Sen. Dirk Durban (D-IL) and now has 30 co-sponsors.
With the April 15 federal filing deadline approaching, Brown encourages all eligible Ohioans to take advantage of the EITC, free online filing services, and the free tax preparation services offered throughout the state.
Ohioans who have access to the internet and gross incomes of $58,000 or less can take advantage of free online filing through the IRS’ web site: http://www.freefile.irs.gov/. The IRS Free File Program helps some many Americans each year file their taxes online in a fast, free, and secure fashion. The program gives filers access to tax preparation software that gives them step-by-step assistance toward preparing, completing, and filing their federal tax returns online.
Free tax preparation assistance is available at sites across Ohio. For additional information, interested persons should contact the IRS for Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) site locators. Call the hotline at: 1-800-906-9887 and enter your zip code for the neatest VITA/TCE site location.
More information on eligibility and the filing process for the EITC can be found at http://www.irs.gov/.
