Qualified Taxpayers Can Receive up to $5,751 by Filing with the IRS
ALEXANDRIA, Va. (Jan. 27, 2012) – The National Credit Union Administration (NCUA) is joining the Internal Revenue Service and other federal agencies to once again alert qualified tax payers and remind credit unions providing tax assistance services of the Earned Income Tax Credit (EITC). Taxpayers who qualify and claim the credit could pay less federal tax, pay no tax, or even get a substantial tax refund.
“The EITC is a federal income tax credit specifically for low-income working families,” said NCUA Board Chairman Debbie Matz. “The tax credit goes directly to families who may use it for living expenses or to offset depleted savings.”
Congress originally approved the tax credit legislation in 1975 to offset, in part, the burden of social security taxes and to provide an incentive to work. Income and family size usually determine the amount of the EITC, but individuals without children may also quality.
“We hope the thousands of credit unions who have members that qualify for the credit will also carry this message, especially those credit unions that participate in the Volunteer Income Tax Assistance Initiative,” added Chairman Matz.
NCUA’s Office of Small Credit Union Initiatives (OSCUI) awards technical assistance grants to low-income designated credit unions that operate or participate in Volunteer Income Tax Assistance (VITA) sites. The credit unions receiving funds under this initiative for the 2010 tax year reported more than 16,055 tax returns prepared and $5.6 million Earned Income Tax Credits returned to the members in the low-income communities. OSCUI awarded more than $100,000 to credit unions for operating or participating in VITA sites for the 2010 tax year, with individual credit union awards up to $6,500.
EITC can put up to $5,751 into the pockets of eligible taxpayers. There are many resources for finding out about EITC including NCUA’s consumer website www.mycreditunion.gov
where you will find many helpful links including:
NCUA is the independent federal agency created by
the U.S. Congress to regulate, charter and supervise
federal credit unions. With the backing of the full
faith and credit of the United States, NCUA operates
and manages the National Credit Union Share
Insurance Fund, insuring the deposits of nearly 100
million account holders in all federal credit
unions and the overwhelming majority of
state-chartered credit unions. At
Pocket Cents, NCUA also educates the public on consumer protection and financial literacy issues.