The Earned Income Tax Credit (EITC) Coalition is a United Way-led coalition that educates low income workers about their eligibility for the Earned Income Tax Credit (EITC) and provides low-income families with free tax return preparation and asset building information. During the 2006 tax season, the Coalition and volunteers returned more than $112,000 in tax refunds to 62 local hardworking families and to the local economy. Read more about the Earned Income Tax Credit and free tax preparation sites below.
- About the Earned Income Tax Credit
- Do I Qualify?
- Free Tax Help
- Volunteers Needed
- Frequently Asked Questions
Did you know that in the Fredericksburg region, the IRS estimates that over 3 million dollars in Earned Income Tax Credits (EITC) go unclaimed each year? A family earning less than $38,000 in 2006, may be eligible for an EITC refund of up to $4,536.
The Earned Income Tax Credit Coalition, led by United Way, educates workers that they may be eligible for the EITC and other tax credits. The Coalition also provides free tax preparation assistance to help local, hard working families claim these credits and build financial security. Tax sites open in late January and remain open until April 15 each year. To learn more click here.
More than just free tax help!
The EITC Coalition provides more than just free tax help. The Coalition connects taxpayers to financial education classes and other resources so taxpayers make the most of their tax refund. Click here for resources for education about budgeting, buying your first home, money management, etc.
The Earned Income Tax Credit is a refundable tax credit available to individuals and families earning less than a certain income per year. The Earned Income Tax Credit reduces or eliminates the amount of income taxes an individual owes. If the credit is greater than the income taxes owed, an individual can get the rest of the EITC back as a refund. Depending on family size and income, families earning $38,000 or less could get an EITC refund of up to $4,536.
To qualify for the Earned Income Tax Credit you must:
- Be a US Citizen or Resident Alien with a valid Social Security Number (SSN).
- Have earned some income, full or part time. Individuals who were unemployed for part of the year may qualify.
- Earn no more then the amounts listed here.
- Have investment income of $2,800 or less.
- Not be a qualifying child of another person.
- If married, file as �married filing jointly�.
| Status | Maximum Earnings | Maximum EITC Refund |
| Single, No Children | $12,120 | $412 |
| Unmarried, 1 child in home | $32,001 | $2,747 |
| Unmarried, 2+ children in home | $36,348 | $4,536 |
| Married, No Children | $14,120 | $412 |
| Married, 1 child in home | $34,001 | $2,747 |
| Maried, 2+ children in home | $38,348 | $4,536 |
To qualify for free tax help you must have a family income of $38,000 or less and bring the necessary documents with you to the tax site. Taxpayers should be eligible for the EITC to request help at the tax sites.
When seeking assistance at free tax preparation sites, please make sure to bring the following items. Taxpayers will not recieve assistance at tax sites until bringing all necessary documentation.
- Driver�s License or Photo Identification Card
- Social Security card for taxpayer and all dependents
- Documentation of the ITIN for all dependents not eligible for a Social Security Card. Individuals with ITIN numbers are not eligible for the EITC, but may be eligible for the Child Tax Credit.
- All W-2 Forms.
- 1099 Forms reflecting other income you may have received
- If you paid for childcare, bring the providers name, address, and tax identification number.
- Your spouse in person, if filing jointly.
- Proof of account for direct deposit of refund (voided check)
Free tax preparation sites open in late January and remain open until April 15. Taxpayers are assisted on a walk in basis. There are no appointments.
Days and times of operation of tax sites will be announced in January. Call First Call for Help at Rappahannock United Way for more information, 540/371-5268.
| Location | S | M | Tu | W | Th | F | Sa |
| Garrison Woods Apartment Complex | |||||||
| Thurman Brisben Center | |||||||
| Virginia Employment Comission | |||||||
| Stafford Head Start |
The Earned Income Tax Credit Coalition is in need of tax preparation volunteers. These volunteers assist individuals in preparing and filing their returns at tax sites from late January to April 15.
There is no prior experience required to volunteer. However, all returns are prepared and filed on the web, so comfort with computers is necessary.
Tax law training is provided free of charge. All volunteers must pass a test that certifies they are able to help prepare taxes. Classroom training is typically offered in December and January. Online training, Link and Learn, is also available through the IRS website. Volunteers only need to study and pass the Basic section.
If you are interested in volunteering please complete the volunteer form and return it to Melissa Terry via email or mail–PO Box 398, Fredericksburg, VA 22404.
If you have any questions please email Melissa Terry or call 540/373-0041 x 19.
About the EITC
Who is a qualifying child?
Basically, a qualifying child is a child who:
- Is your son, daughter, adopted child, grandchild, great-grandchild, stepchild, or eligible foster child, and;
- Was (at the end of the tax year) under age 19 or under age 24 and a full-time student, or; permanently and totally disabled at any age during the year; and
- Lived with you in the United States for more than half of the tax year.
Who is an eligible foster child?
A child is your eligible foster child for the earned income tax credit if all the following apply.
- The child is placed with you by an authorized placement agency. (An authorized placement agency includes a state or local government agency or court. It also includes a tax-exempt organization licensed by a state.)
- You care for that child as you would your own child.
- The child lived with you for more than half of the tax year, except for temporary absences.
What is Earned Income?
Earned income includes all the taxable income and wages you get from working.
There are two ways to get earned income:
- You work for someone who pays you, or;
- You work in a business you own.
Taxable earned income includes:
- Wages, salaries, and tips;
- Union strike benefits;
- Long-term disability benefits received prior to minimum retirement age;
- Net earnings from self-employment.
How can I get EITC in my paycheck?
You may prefer to get some of next year�s EITC throughout the year, rather than wait and get EITC after you file your tax return. To get the EITC in advance complete Form W-5 and give the lower part of the form to your employer. Keep the top part for your records.
How do I claim my credit?
You must file taxes to claim your credit. Free tax preparation sites have been set up to help you file your taxes and claim the Earned Income Tax Credit (EITC). To find out specific locations and times call First Call for Help at Rappahannock United Way, 540/371-5268.
Where can I get more information?
If you want to claim the EITC you should make sure you are eligible for the credit before sending in your tax return. Don’t guess. Know if you are qualified.
To find out if you qualify,
- Call the IRS at 1-800-TAX-1040
- Visit the IRS website and use the EITC Assistant
- Or call First Call for Help at Rappahannock United Way , 540/371-5268.
From Volunteers
What is certification?
Certification ensures that you are qualified to assist others in preparing their tax returns. The IRS certifies volunteers by asking them to answer questions using reference materials and to fill out an example tax return. It is an open book test.
I volunteered last year or already have relevant training. Do I have to re-certify?
Yes. You must re-certify each year. You may want to take a Refresher Tax Law course. You may also be interested in developing your skills in Advanced Tax Law.
What if I want to help as a Tax Preparer but can’t go to classes?
You do not have to take classes if you are confident that you can study on your own to pass the certification. You can use the IRS�s online study module called Link and Learn. Volunteers only need to study and pass the Basic section. After completing the course you can take the certification test online.
From Employers and Community Agencies
Do you have fliers that I can distribute to my employees or clients?
Yes. Download a copy of our local flier to distribute to employees or clients, to hang in break rooms or lobbies, to distribute to customers, etc. Speakers are also available to give EITC presentations to a group of employees or clients. For a presentation, contact Melissa Terry at 540/373-0041 x19.
What is the Advanced EITC?
The advance 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 advance EITC can register in January. The credit will appear in each paycheck, equally dispersed throughout the year. Taxpayers who expect to qualify for advance EITC must expect:
- Their 2006 income will be below $32,001 ($34,001 if you expect to file a joint return for 2006)
- To have at least one qualifying child; and
- To qualify for the EITC.
Taxpayers who want to receive advance EITC payments must complete Form W-5, Earned Income Credit Advance Payment Certificate, give the bottom part to their employer and keep the top part for their records. With this authorization, employers will include the designated amount in the taxpayer’s paychecks.
When participating taxpayers no longer expect to qualify for the EITC, they must fill out a new Form W-5 and give it to their employer to stop the advance payments.
Taxpayers whose only income is from self-employment are not eligible to receive advance EITC payments.
Where can I get more information about Advanced EITC?
Employers can refer to Publication 15, Circular E, Employer’s Tax Guide, or click here to find more information on the IRS�s website.
