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Many Eligible Long Beach Workers Don't Get Tax Credit

The earned income tax credit is available to millions of taxpayers, but 20 percent of them don’t claim it.

The IRS is encouraging low- and moderate-income workers to find out if they qualify for the earned income tax credit - available to those making about $50,000 or less.

One in five tax filers that are eligible for the credit fail to take advantage of it, costing them a potentially greater refund. People can find out if they qualify online with the EITC assistant on the IRS website.   

“A large part of the nation sees major changes every year with their tax situation,” said IRS Acting Commissioner Steven T. Miller. “This year, millions of workers could qualify for EITC for the first time, and the IRS urges them not to overlook this valuable credit.”

California taxpayers received $6.8 billion from the EITC in 2012, with 897 workers in Los Alamitos getting $1,557,134. In Seal Beach, 617 workers received $792,187. Qualifying for the credit could mean up to $475 for people without children, and a maximum credit of up to $5,891 for those with three or more qualifying children.

Unlike most deductions and credits, the EITC is refundable. In other words, those eligible may get a refund from the IRS even if they owe no tax. Workers must file a tax return, even if they are not required to file, and specifically claim the credit.

More information on EITC and detailed eligibility rules are available on the IRS web site.

Shore Resident February 20, 2013 at 04:53 AM
"Unlike most deductions and credits, the EITC is refundable. In other words, those eligible may get a refund from the IRS even if they owe no tax." Which means that they are taking money from my pocket. Why should one receive a refund if they owe no tax (which is a rhetorical question)?
John B. Greet February 20, 2013 at 05:18 AM
Aww, come on, Shore. You know very well that one no longer has to have any skin in the game to get government goodies. Why should anyone be required to pay into a tax system to be able to get money back out of it? That's not how it's supposed to work...is it? ;-)

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