For Immediate Release
January 16, 2012
|CONTACT: Martha O’Gorman
Liberty Tax Chief Marketing Officer
(800) 790-3863 ext. 8022
Liberty Tax Examines the Latest Earned Income Credit Changes
More Eligible Taxpayers Are Now Claiming EITC
(Virginia Beach, VA) The Earned Income Credit makes a major
economic difference in the lives of over 26 million low and moderate income
Americans workers. Although 4 out of 5 of those eligible for EIC are now
claiming it, millions of others who suddenly experience lower wages may find
themselves eligible to claim the EIC credit for the first time. Liberty
Tax encourages low and moderate income wage earners to familiarize
themselves with the latest qualifying conditions for the EIC. Because the EIC is a refundable credit, it can
reduce or eliminate tax liabilities for eligible wage earners with and without
children. Claiming the EIC has no effect
on welfare benefits, food stamps and low income housing eligibility.
“Recipients of the Earned Income Credit no
longer have the option of taking advance earned income tax credit payments on
their paychecks as they have in the past,” reminded John Hewitt, CEO of Liberty
Tax Service. The Earned Income Credit amounts will be
temporarily increased for working families with three or more children through
2012. The adjusted gross income (AGI) limits
for the earned income credit and maximum available refund amounts for 2011 are
for taxpayers with three or
more qualifying children, ($49,078 for Married Filing Jointly): $5,751 maximum.
for taxpayers with two or more
qualifying children ($46,044 if Married Filing Jointly): $5,112 maximum.
for taxpayers with one
qualifying child, ($41,132 for Married Filing Jointly): $3,094 maximum.
for taxpayers with no
qualifying children, ($18,740 for Married Filing Jointly): $464 maximum amount.
maximum amount of investment income for eligibility is $3,150 in 2011.
Active duty military who served in a combat zone may elect
to include nontaxable combat pay in earned income to figure the earned income
credit, if this increases their benefits.
In order to claim the EIC, the taxpayer must be working, not
claimed as a dependent, at least 25 years old but under 65, and have lived in
the United States over half of the year to claim the EIC. Filing status cannot be married filing
separately. They must file a tax return.
Grandparents as well as parents may be eligible to claim
dependents for EIC if they meet the criteria. For dependent children to be claimed for EIC
purposes, the child must be under 18, but can be under 24 if they are a
full-time student. The dependent must be
related to the taxpayer as a child, stepchild, grandchild, eligible foster
child, adopted child, brother, sister, half brother, half sister, stepbrother,
stepsister, or a descendant of any of them (for example, a niece or nephew) who
has lived with the eligible taxpayer for over half of the year. A
totally disabled person may be claimed as a dependent for EIC regardless of
About Liberty Tax Service
Tax Service is the fastest-growing retail tax
preparation company in the industry’s history.
Founded in 1997 by CEO John T. Hewitt, a pioneer in the tax industry,
Liberty Tax Service has prepared over 9,000,000 individual income tax
returns. With 42 years of tax industry
experience, Hewitt stands as the most experienced CEO in the tax preparation
business, having also founded Jackson Hewitt Tax Service. Each office provides computerized income tax preparation, electronic
filing, and online filing through eSmart Tax.
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O’Gorman, (800) 790-3863 ext. 8022, firstname.lastname@example.org. Representatives of Liberty Tax Service are
available to discuss the Earned Income Credit, and to make presentations to
local groups who might be interested in learning more.