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Earned Income Tax Credit (EITC)

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Frequently Asked Questions

EARNED INCOME TAX CREDIT (EITC) PROGRAM

Each year more than 15,000 residents of Santa Cruz County receive over $25 million in EITC refunds. Yet, more than 3,000 eligible families and individuals do not take advantage of the EITC, leaving $6 million in EITC refunds on the table. The EITC makes a tremendous impact in the lives of the workers who receive it and who use it to pay off debt, cover basic living expenses, and build savings.

The goals of the EITC program are to:

• Increase the number of working families who claim the EITC through outreach and education
• Provide free tax preparation to working families who earn less than $49,000 annually
• Build economic security and wealth among working families by helping them build assets

CONTACT US
If you would like information about how to get free tax assistance, please call 831-460-2359. The 2010 free tax assistance schedule is available here.

What is the Earned Income Tax Credit?
The Earned Income Tax Credit (EITC) is a special tax benefit for working people who earn low to moderate incomes. Workers who qualify for the EITC and file a federal income tax return can get back some or all of the federal income tax that was taken out of their pay during the year. They may also get extra cash back from the IRS. Even workers whose earnings are too small to owe income tax can get the EITC. The EITC is worth up to $5,657 in 2009.

Will you qualify for EITC this year?
Find out if you are eligible for the Earned Income Tax Credit (EITC) by answering some questions and providing basic income information using the EITC Assistant. Available in English and Spanish.

Depending on their income and family size, single or married people who work full-time or part-time at some point during 2010 can qualify for the EITC, depending on their income and family size.

Here are some basic eligibility rules:

• You must have a valid Social Security number for yourself, your spouse, and your qualifying child for the EITC
• You must have earned income (salaries, tips, or wages) from a job or self-employment
• If you are not raising children, you must be age 25-64
• You investment income cannot exceed $2,950
• Your filing status cannot be "Married Filing Separate"
• Cannot file Form 2555 or 2555-EZ (related to foreign earned income)
• You must meet the income guidelines below

What is a qualifying child for the EITC?

• Sons, daughters, stepchildren, grandchildren, and adopted children
• Brothers, sisters, stepbrothers, or stepsisters - as well as descendants of such relatives
• Foster children who are placed in the home by an authorized government or private placement agency

"Qualifying children" must live with you for more than half the year. They must be under age 19, or under age 24 if they are full-time students. Children of any age who have total and permanent disabilities may also be qualifying children. Valid Social Security numbers are required for qualifying children.

What if I don't qualify for the EITC?
You should still consider filing a federal income tax return, because you may be entitled to a tax refund based on the amount of income tax withheld from your paycheck. Also, there are other valuable tax credits that you may qualify for, such as, the Child Tax Credit, the Child Care Credit, or the Retirement Savings Contribution Credit. Be sure to ask your tax preparer about these credits or visit www.irs.gov for more information. Or, if you qualify, visit one of our free tax assistance sites and we'll do your tax return for free.

FREE TAX ASSISTANCE -
To make an appointment, please call 831-460-2359. SCCCU operates two free tax assistance sites. One site is at our main branch at 324 Front St., Santa Cruz in the Community Room on Thursdays from 1- 6 pm. SCCCU's second free tax site is at Workforce Santa Cruz County, 18 W Beach St. Watsonville, Mondays from 9 am - 4 pm (by appointment only). For more dates, times and locations call Project Scout toll-free at (877) 373-8297.

REQUIRED DOCUMENTS

• Original Social Security Cards or Individual Tax Identification Number (ITIN) letters (for yourself, your spouse, and all dependents.)
• Photo ID
• All W-2s or 1099s from employers
• Copy of last year’s tax returns ( not required but very helpful)
• 1099s or 1098 for interest, mortgage interest, or property tax, if applicable
• Information on higher education expenses (tuition, fees, etc.)if applicable
• Information on expenses for itemization, if applicable
• If you paid for childcare, bring the provider’s name, address, tax id number, and the amount paid.
• Blank Check or savings deposit slip with bank account and routing number for Direct Deposit.

Get your refund faster -- Tell IRS to Direct Deposit Your Refund to One, Two or Three Accounts
You have several options for receiving your 2009 federal income tax refund. You can:

• Split your refund with direct deposits into two or three checking or savings accounts
• Direct deposit your refund into one checking or savings account
• Receive your refund as a paper check in the mail, although this option takes a little longer

Start Building Savings This Tax Season
Open a Savings account with Santa Cruz Community Credit Union.
Variety of Savings Programs

• Regular Savings Accounts
• Community Certificates ("certificates of deposit") with a variety of rates and terms
• Roth and Standard Individual Retirement Accounts (IRAs) with no maintenance fees

SPONSORS AND SUPPORTERS
Trader Joes, Beckman's Bakery, The Buttery and the National Credit Union Administration.

If you would like to become a volunteer or if you seek additional information about the program, please contact Elisa Ramirez at (831) 460-2346 or email elisa.ramirez@scruzccu.org.