Capacity Building

1
Keep More of Your Money
With Free Tax Preparation and the Earned Income
Tax Credit
A Presentation for DHR Employees for the 2004 Tax
Year
2

• Dont Give Your Money to ...
• 1. Rapid refund shops
• Its not a refund, its a high-interest loan
• It can cost you thousands of dollars
• 2. Professional tax preparers
• Charge high service fees
• HR Block, etc.
• You dont need them, because ...

A BsRapid Refunds
3
VITA Sites and Some Online Sites... 1. Do your
taxes for free 2. Are at schools, churches,
libraries, etc. near you 3. Do fast electronic
filing at many sites 4. Are staffed by volunteers
trained by the IRS 5. Specialize in working
families taxes, including Earned Income Tax
Credit ...
4

• The Earned Income Tax Credit (EITC)
• A tax refund or credit for working families
• Lets you keep more of your paycheck at tax time
  and throughout the year

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• How Much Is the Credit Worth?
• 1. If you
• Are single
• Have one child
• Had a family income below 30,338 in 2004
• You can get up to
• 2,604
• Or ...

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• 2. If you
• Are married
• Have one child
• Had a family income below 31,338 in 2004
• You can get up to
• 2,604
• Or ...

7

• 3. If you
• Are single
• Have two or more children
• Had a family income below 34,458 in 2004
• You can get up to
• 4,300
• Or ...

8

• 4. If you
• Are married
• Have two or more children
• Had a family income below 35,458 in 2004
• You can get up to
• 4,300
• Or ...

9

• 5. If you
• Are single
• Have no children (or none who qualify)
• Were aged 25 to 64 in 2004
• Had a family income below 11,490 in 2004
• You can get up to
• 390
• Or ...

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• 6. If you
• Are married
• Have no children (or none who qualify)
• Were (or your spouse was) aged 25 to 64 in 2004
• Had a family income below 12,490 in 2004
• You can get up to
• 390

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• Other Benefits for Working Families
• Child Tax Credit
• Up to 1,000 for each child under 17 claimed as a
  dependent
• If you earned more than 10,750, you may be
  eligible even if you owe little or no tax
• Child and Dependent Care Credit
• Helps you recover some expenses paid for child or
  other dependent care

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• What Tax Forms Do I Need?
• NONE! VITA sites have them all. Just bring
• Your W2s
• Any other income statements you have
• Childrens Social Security cards
• Amount you spent on child or dependent care plus
  providers Employer ID or Social Security
• Statement(s) showing public benefits or child
  support received (not taxableused only to show
  you provided at least 1/2 support for dependents)

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• What If I Do My Own Taxes?
• If you have children, you will need
• Form 1040 or 1040A
• Schedule EIC (Earned Income Tax Credit)
• Form 8812 (Child Tax Credit)
• If you dont have children, youll need
• Form 1040 or 1040EZ
• Get forms from www.irs.gov or call (800)TAX-FORM
  and..

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• What If I Want to File Online?
• Visit one of these helpful free website
  resources
• Free Online Filing (IRS) -
• http//www.irs.gov/efile/article/0,,id118986,
  00.html
• AARP Tax Aide Sites - https//wpp.aarp.org/vmis/si
  tes/tax_aide_locator.jsp
• EITC Assistant (IRS-SPEC) -www.irs-eitc.info/SPEC
• Georgia Free File Alliance - http//www2.state.ga.
  us/departments/dor/inctax/efile/freefile.shtml
• EIC Poster for Display in your office -
• http//www.cbpp.org/eic2005/eic05-poster.pdf