Iowa families could get thousands of dollars by taking advantage of a federal tax credit. Christopher Miller, the Iowa spokesman for the Internal Revenue Service, says the agency is trying to raise awareness about the Earned Income Tax Credit.
“The EITC is a huge credit for working families, generally low to moderate-income families, that may not make a lot of money,” Miller says. “Depending on their income, for a family with three or more children, it can be a credit of up to $5,891.”
To find out if you may be due some dough, Miller says to visit the agency’s website, IRS.gov. “We have an EITC assistant and it will allow you to plug in all of your information and find out if you qualify,” Miller says.
“You can also go to a Volunteer Income Tax Assistance site, or a VITA site in your community and they will help you prepare your tax return for free and electronically file it.” Miller says Iowans who work and earn less than roughly $50,000 from wages, self-employment or farming may be eligible for the EITC, as well as free help preparing their return.
“Last year, around 207,000 families in Iowa received around $425-million in EITC and the average check was around $2,062,” Miller says. “This is certainly money that can make a real difference to families trying to make ends meet.”
Although an estimated four out of five eligible workers and families get the credit, Miller says one in five still miss out, either because they don’t claim it when filing, or don’t file a tax return.