United Way of Greater Knoxville has launched the Earned Income Tax Credit (EITC) campaign in order to better serve Knoxville low-wage earners and create lasting change in our community. The EITC is the largest federal anti-poverty program in the country, and it lifts millions of people above the poverty line each year. However, EITC is not welfare: it reduces taxes, supplements wages, and provides an incentive to work.
What is the Earned Income Tax Credit?
Earned Income Tax Credit is a refundable credit for low-income taxpayers who work. The amount of the credit depends on income and family size. Whatever its size, the EITC is money that is often used to pay down debt or for other necessities, but it also can provide an opportunity to begin wealth-building activities, such as opening or contributing to a savings account. The wealth building potential that becomes available with the EITC is a real and tangible move toward self-sufficiency for the hard working people in our community, therefore making it an important project for United Way of Greater Knoxville.
The EITC campaign at United Way strives to make a difference in the lives of low-income community members in three important ways:
- Education and promotion of the economic benefits of EITC both to the individual and community at large
- Endorsement and support of free tax preparation sites; education about predatory lending practices and the costly fees associated with "rapid refund" loans or Refund Anticipation Loans (RALS)
- Promotion of and education about financial literacy opportunities in our community
Who is eligible?
You may qualify for FREE tax preparation and a refund through the EITC. If so, you could save thousands for your family’s future.
• The EITC credit is a refund from the IRS of up to $4,700 for families earning less than
$40,000 annually.
• Applicants must be a U.S. citizen or resident alien for the year 2007.
• The EITC does not affect your eligibility for TANF, Medicaid, Food Stamps, SSI or
subsidized housing.
Current tax year 2007 Income Thresholds:
Single married people who worked full or part-time in 2007 can qualify if they earned less than the income guidelines.
- $37,783 ($39,783 if married filing jointly) with more than one qualifying child (Maximum Credit: $4,716).
- $33,241 ($35,241 if married filing jointly) with one qualifying child (Maximum Credit: $2,853).
- $12,590 ($14,590 if married filing jointly) without a qualifying child & between ages 25 and 64 on 12/31/07 (Maximum Credit: $428).
- Investment Income Limit = less than $2,900
Items to bring with you:
- photo identification
- Social Security cards for the taxpayer(s), their spouse, and dependents on the return
- Birth dates for primary, secondary, and dependents on the return
- A copy of last year’s federal and state returns if available
- Wage and earning statements: Form W-2, W-2G, 1099-R from all employers
- Interest and dividend statements from banks (Form 1099)
- Current year’s tax package (if you received one)
- Other relevant information about income and expenses
- Total amount paid for daycare
- To file taxes electronically on a married filing joint tax return, both spouses must be present to sign the required forms.
- Checking, savings, and IRA account numbers (in your name), along with your bank’s routing numbers, if you wish to have refunds electronically deposited.
Information about free tax preparation sites and hours of operation may be obtained by calling
2-1-1 East Tennessee Information & Referral, the IRS at 800-849-1040, or AARP at 888-227-7669.
If your organization would like promotional materials, to schedule a presentation, or to otherwise get involved, contact Donna Deichert at 523-9131 ext. 225 deichertd@unitedwayknox.org.
For more information, contact:
www.irs.gov
www.tnafi.org
This project is funded under an agreement with the Tennessee Department of Human Services.
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