As an organization dedicated to reducing poverty in eastern Idaho, Partners for Prosperity recently began its third year of promoting the Earned Income Tax Credit (EITC) as a critical tool for increasing financial prosperity for working people. As a refundable federal tax credit, statistics show that many people in eastern Idaho who qualify for the EITC do not apply. This means thousands of dollars lost to working individuals and families and less money that will benefit the regional economy. To address the problem, Partners for Prosperity has developed the C.A.S.H. (Creating Assets Savings and Hope) campaign. The goal of the campaign is to promote the use of the Earned Income Tax Credit and the Child Tax Credit during tax season, increase financial literacy and awareness, and link working individuals and families to wealth-building programs and opportunities. This year, over 18 individuals representing various organizations have volunteered to assist in helping spread the message and inform the public about EITC as well as other important financial resources available to the community.

Partners for Prosperity is also working to increase public awareness and utilization of no-cost tax services provided to low-income individuals, families and seniors by the American Association of Retired People (AARP). For dates, times, and locations of AARP tax preparation sites, call the Idaho Careline by dialing 211 or visit www.idahocareline.org In addition, filers should consider having their refunds directly deposited into their bank accounts to receive refunds more quickly. Avoid the use of “superfast” or “advance” refund services; these are short-term loans that typically charge very high interest rates, meaning less money to the tax filer. To learn more about the C.A.S.H. Campaign, contact Delverne Seaman with Partners for Prosperity at 785-0059 or delvernes@p4peid.org

What Tax Credits Can You Claim?

Earned Income Tax Credit (EITC) & Child Tax Credit

The Earned Income Tax Credit (EITC) and Child Tax Credit are refundable tax credits for people who work. If you qualify, you’ll owe less in taxes and may even qualify for a cash refund. Even if you don’t owe income tax you can get the EITC. But you must file a tax return. Note: These tax credits do not count as income in determining eligibility for public benefits like food stamps, SSI, Medicaid, TANF, and public housing.

To learn more about EITC and the Child Tax Credit, dialing 2-1-1 to speak to an Idaho Careline representative. The call is free statewide.

Who is Eligible for Tax Credits?

· Families with two or more qualifying children who earn less than $37,783 (or less than $39,783 for married filing jointly) may be eligible for an EITC refund of up to $4,716.

Families with one child who earn less than $33,241 (or less than $35,241 for married filing jointly) may be eligible for an EITC refund of up to $2,853.
Workers without children who earn less than $12,590 (or less than $14,590 for married filing jointly) may be eligible for an EITC refund of up to $428.

· Families that earn more than $11,750 also may be eligible for the Child Tax Credit, up to $1,000 for each child.

To claim the EITC, you must have a valid Social Security number. To claim the Child Tax Credit, you may have a Social Security number or Individual Taxpayer Identification Number (ITIN).

How to File

· To file for the Earned Income Tax Credit with dependents, file federal tax return Form 1040 or 1040A. For those with no dependents (single or married), use Form 1040EZ, if you are eligible to use this form. Attach Schedule Earned Income Tax Credit with your tax return.

· To file for the Child Tax Credit, follow the same requirement stated above but attach Form 8812 with your tax return.

To learn more about EITC and the Child Tax Credit, call an Idaho Careline representative by dialing 2-1-1. The call is free statewide or visit www.idahocareline.org

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Need Help Filing Your Taxes?

AARP Tax-Aid and VITA Sites

If you use a paid preparer, on average you can expect to pay between $100 and $200. A great way to save money is to go to a free tax assistance site (open from early February through April 15), where trained tax preparers will file your taxes electronically at no cost, if you earned less than $50,000. For the location of a free tax site near you, dial 2-1-1 or go to www.p4peid.org/cash/taxaid to locate a site nearest to you (website information available after February 1^st).

Important Notice

After you've located an AARP Tax-Aide site or scheduled an appointment, you will need to bring the following documents with you:

· Copy of previous year tax return. If necessary, contact the IRS for a copy of last year's return.

· W-2 forms from each employer

· All 1099 forms (1099-INT, 1099-DIV, 1099-misc., etc.) showing interest and/or dividends as well as documentation showing the original purchase price of your sold assets

· If you were paid Social Security benefits, bring your SSA-1099

· If you received a pension or annuity, bring your 1099R

· All forms indicating federal income tax paid

· If applicable, unemployment compensation statements

· Child care provider information (name, employer ID, SSN)

· If itemizing deductions, bring all receipts or canceled checks for items such as medical expenses, taxes paid, mortgage interest paid, and charitable contributions

· Social Security numbers for all dependents

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Additional Tax Assistance

· Lower-Income workers can electronically file free online. If you have access to a computer and the Internet and want to prepare your own tax return, go to www.irs.gov/efile. Be aware that some companies may charge to file your state tax return but you can file your Idaho return at no cost online at http://tax.idaho.gov

· And, it costs even more to get a Refund Anticipation Loan (RAL) or “rapid refund.” But be aware, these are really high-cost loans! If you don’t need the refund immediately, save money by not taking a loan. You speed up the refund just by filing electronically, which is what most paid preparers do. And, if you have a bank account, your refund can be deposited directly into your account, and that only takes 7-10 days!

For more information, call an Idaho Careline representative by dialing 2-1-1. The call is free statewide or visit www.idahocareline.org

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Tax Related Information Contact List

AARP Tax-Aid

For more information on no-cost tax preparation services in eastern Idaho and the Fort Hall Indian Reservation:

Call 1-888-AARPNOW (888-227-7669)

www.aarp.org/money/taxaide

Listing of AARP Tax-Aid and VITA tax preparation sites

Internal Revenue Service

For more information on the Earned Income Tax Credit and Child Tax Credit:

Call the IRS at 1-800-829-1040

www.irs.gov/eitc

Idaho Careline 211

For more information on the Earned Income Tax Credit, Child Tax Credit, and no cost tax preparation services:

Dial 2-1-1 to reach an Idaho Careline representative. The call is free statewide.

www.idahocareline.org

Partners for Prosperity

For more information on the CASH Campaign:

Delverne Seaman, CASH Campaign Coordinator

Cell: (208) 251-5076

delvernes@p4peid.org

Partners for Prosperity Blackfoot office

625 W. Pacific, Suite 1

Blackfoot, Idaho 83221

Office: (208) 785-0059

Fax: (208) 785-5866

www.p4peid.org

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2007 Campaign Partners

AARP Tax-Aid

Bank of Commerce

Catholic Charities of Idaho

City of Rexburg

Eastern Idaho Community Action Partnership

Idaho Department of Labor

Idaho Falls Power

Idaho Health and Welfare

Idaho Housing Finance Association

Idaho State University Credit Union

Internal Revenue Service (IRS) Boise Office

Portneuf Valley Interfaith Council

Shoshone-Bannock Temporary Assistance for Needy Families (TANF) Program

Shoshone-Bannock Tribal Credit

Southeastern Idaho Community Action Agency

U.S. Bank

United Way of Southeastern Idaho

University Financial Group

University of Idaho Extension – Madison County

Zions Bank

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