The Earned Income and Child Tax credits reduce the amount of income workers owe. Workers who don’t make enough money to owe taxes can still qualify for the credit, but they must file tax returns to claim the credits.
Earned Income Credit
The EIC is a refundable, federal income tax credit for full- and part-time workers who fall below certain income thresholds. It can be worth as much $6,143. Those who raised children and earned less than $48,000 in 2014 can claim the credit, as well as those not raising children who earned less than $14,000 last year.
Some workers with children choose to receive part of their EIC payments in advance as part of their regular paychecks and the rest after they file their annual tax returns. Individual taxpayers who earned less than $38,511 ($43,941 for married taxpayers filing jointly) with at least one qualifying child are eligible.
Child Tax Credit
The Child Tax Credit is worth up to $1,000 for each qualifying child under 17. The tax credits can help employees pay for childcare and cover other day-to-day needs. Families who earned at least $3,000 in taxable income in 2014 are eligible.
The Center for Budget and Policy Priorities offers free posters, fliers and paycheck inserts for employers. Color posters are available in English and Spanish, and fliers are available in 21 languages. Get more information at (202) 408-1080, download the materials and get tips to promote the tax credits.
Free tax help
The IRS offers free electronic filing and assistance through the Volunteer Income Tax Assistance Program, a partnership with community-based organizations. Workers who earned less than $52,000 in 2013 are eligible. Taxpayers should call (800) 906-9887 to find a VITA site near them. The IRS also has a help line to answer taxpayer calls about credits or other tax issues. The number is (800) 829-1040.
Article provided by: The National Restaurant Association