NH Earned Income Tax Credit

If you worked in 2007 and you are eligible, you may receive:

● up to $4,716 if you have two or more children and earned less than $37,783 (or less than $39,783 for married workers); or

● up to $2,853 if you have one child and earned less than $33,241 (or less than $35,241 for married workers); or

● up to $428 if you have no children, earned less than $12,590 (or less than $14,590 for married workers) and are between the ages of 25 and 65.

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What children can be counted?

An eligible child includes a son, daughter, adopted child, stepchild, grandchild, great-grandchild, or eligible foster child who is less then 19 years of age; a full-time student who is less than 24 years of age; or a child who is permanently and totally disabled. The eligible child must have lived with you in the U.S. for more than six months during the year, or for fewer than six months if a full-time student.

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What tax forms do I need to file?

If children were raised in your home in 2007, file IRS Form 1040 or 1040A, and complete and attach Schedule EIC. If children were not raised in your home in 2007, file IRS Form 1040 or 1040EZ.

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How can I get help filling out these forms?

The IRS sponsors trained Volunteer Income Tax Assistance (VITA) volunteers and Tax Counseling for the Elderly (TCE) volunteers at various sites.

The IRS certifies volunteers to provide free tax help through the Tax-Aide Program of an organization called the AARP.

To find the Tax-Aide Program nearest you, go to the Tax-Aide Locator or call 1-888- 227-7669.

Volunteer Income Tax Assistance (VITA) volunteers prepare basic income tax returns for individuals who have low to moderate incomes, disabilities, or who do not speak English; TCE sites assist elderly and low-income taxpayers.

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How can I find the nearest VITA or TCE location?

Low-income workers can get free help with tax preparation through local offices throughout New Hampshire. For the nearest locations, call 1-866-982-3482 or check our list of Free Tax Prep Sites. Please call the VITA site ahead of time to find out the hours and days of operations.

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What if I haven’t filed a tax return for the past few years?

You could still qualify for EITC. If you are eligible, you can claim EITC for three years back. If you owe back taxes, EITC may reduce your tax debt.

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Who can receive advance payments of EITC?

Most employees who have at least one child living with them can file to receive advance EITC payments in their paychecks. You must complete a W-5 form, the Earned Income Tax Credit Advance Payments Certificate, which is available from your employer. You can file a W-5 anytime during the year, but you must file a new W-5 at the beginning of each year to continue receiving EITC in your paycheck. If you get advance payments, you also must file an annual tax return and a Schedule EIC. Learn more about it from the IRS Advanced Earned Income Credit Questions and Answers page at:

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Where can I get the necessary tax forms?

You can often pick up tax forms at your local U.S. Post Office or public library. Tax forms can also be downloaded from the IRS website at www.irs.gov.

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Can I receive the Earned Income Credit if I receive public assistance?

EITC is not considered as income in determining you eligibility for benefits like welfare or TANF, food stamps, SSI, Medicaid, the Women, Infants and Children (WIC) program, CHIP, foster care, adoption assistance, or public or subsidized housing.

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Can I receive the Earned Income Credit if I am homeless?

Yes, you can claim EITC if you qualify. You should use the address of a shelter or another facility.

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Can I receive the Earned Income Credit if I am not a U.S. citizen?

Most employed legal immigrants are eligible for EITC, including green card holders, refugees, and others legally authorized to work. Receiving this credit does not affect you immigration status.

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What should I take with me to a Volunteer Income Tax Assistance Site?

● Your Social Security Card or the current Social Security number of you, your spouse, and children.

● Your Federal IRS tax forms for 2007.

● Your wage and earnings statement (W-2 forms) from each employer.

● Other tax forms or receipts of income, interest, and dividends.

● Child and dependent care information.

● Copy of last year’s tax returns, if available.

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Can I get EITC and not have Children?

Workers who were not raising children in their home, were between the ages of 25 and 64 on December 31, 2007 and had income below $12,590 (or $14,590 for married workers) can get EITC up to $428.

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How do I get Advanced EITC?

See if you qualify for Advanced EITC payments by completing the five questions on the back of Form W-5, Earned Income Advance Payment Certificate, available through your employer. If you qualify, complete the bottom part and give it to your employer.

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When do I get Advanced EITC?

The Advanced EITC allows certain taxpayers to receive their EITC in installments throughout the year, instead of a lump sum during the following filing season. Those who expect to qualify for Advanced EITC can register in January. The credit will appear in each paycheck, equally dispersed throughout the year.

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Do I lose my lump sum if I get the Advanced EITC

Most workers get the EITC in one large check from the IRS after they file a tax return. But there is another choice: employers can add part of a worker's EITC to every paycheck and the worker gets the rest of the credit after filing a tax return.

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Are free tax preparation sites qualified to prepare taxes?

IRS sponsors trained Volunteer Income Tax Assistance (VITA) volunteers and trained tax counseling for the elderly (TCE) at various sites. VITA volunteers prepare basic income tax returns for individuals who have low to moderate income, disabilities, or who do not speak English; TCE sites assist elderly and low-income taxpayers.

For more information:

IRS Earned Income Tax Credit Questions and Answers

http://www.irs.gov/individuals/article/0,,id=96466,00.html

IRS Tax Topics about Earned Income Tax Credit

http://www.irs.gov/taxtopics/tc601.html

IRS Frequently Asked Questions about "Qualifying Child" rules
http://www.irs.gov/faqs/faq8-1.html
Information en espanol: Crédito por Ingreso del Trabajo(EITC)

http://www.irs.gov/espano;/article/0,,id=119799,00.html

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