Earned Income Tax Credit (EITC)
Tax Proz is an expert with the EITC and is standing by to assist anyone who qualifies. Simply contact us at info@taxproz.com. We should note however that because we are experts, we are also able to easily identify those who do not qualify. If there is any doubt about your ability to qualify for the EITC, you will be turned away! To determine if you qualify for the EITC, click here. For those who are not familiar with the EITC, the following information may be interesting. The Earned Income Tax Credit is often called simply the Earned Income Credit (EIC). This is a government anti-poverty program originally approved by Congress in 1975. It is a “refundable credit” targeted towards low income working individuals. What this means is that if the EITC exceeds the amount of taxes owed on income, the difference results in a tax refund to those who qualify. As this is targeted towards low income individuals, the final result is often a large refund which may include most or all of the federal income tax withheld during the year on wages, plus the EIC. With the maximum 2007 EITC for a taxpayer or family with two children approaching $5000, the EITC is a major target for fraud. For the 2006 tax year, there were 22.4 million returns filed which claimed the EITC, and $43.7 billion was refunded for those returns. This averages out to be $1950 per EITC claim, so you can imagine the potential for fraud. In fact, it is estimated there is a 23% - 28% error rate in EITC claims, and somewhere between $10 billion and $12 billon was refunded in improper payments. As a result, there has been an ongoing tightening of the rules and definitions on who is eligible and can qualify for this credit. At Tax Proz there is nothing we enjoy more than moving money from the governments pocket to someone far more deserving. In fact in this case the IRS agrees, and estimates that only 75% to 80% of those taxpayers who qualify for the credit actually claim it. As approximately 70% of the returns claiming the EITC are prepared by paid preparers, the IRS is asking tax professionals such as Tax Proz
to assist them with getting the word out and improving the participation by qualified taxpayers in claiming the EITC. It is almost unheard of when Congress and the IRS want to assist taxpayers to increase their refunds so everyone who qualifies should take advantage of it. Tax Proz wants to help! Contact us at info@taxproz.com.