Fostering Self-Sufficiency
Earned Income Tax Credit :: Information About EITC

You or someone that you know could be missing out on thousands of dollars.
Each year, Morris County residents miss out on millions of dollars by not claiming the EITC on their federal and New Jersey state tax returns.  The EITC is a federal and state tax credit available to many low-to-moderate income working families and individuals.  This credit is not based on taxes withheld from a person's paycheck, but instead on how much total income a taxpayer earned over the course of a year.  A low-income family in New Jersey with two or more children could qualify for as much as $5,659 in federal and state tax credits for the 2007 tax year.  These dollars can be turned into savings or invested in the local economy.  It can help build the financial assets of a family and move them forward on their path to self-sufficiency. 

Even though the EITC has been around for many years, many taxpayers are unaware of the tax credits for which they qualify under federal and state tax codes.  When taxpayers do claim the credits, they often lose much of their return to high commercial preparation fees, "rapid refund" loans, and check-cashing operations. The opportunity for asset-building is lost or diminished.

United Way of Morris County is working with the Internal Revenue Service (IRS), First Call for Help, NORWESCAP, the State of New Jersey Department of Human Services, and local community based organizations and businesses to help spread the message about the importance of this tax credit. 

Goals of the EITC campaign are:

• to ensure that more families are aware of the tax credits they are due
• link low-income families to free or low cost tax assistance avoiding high priced tax preparation services
• encourage more families to use their tax credits to build assets and financial stability.

You or Someone You Know Could Be Eligible!
If you or someone you know worked full or part-time in 2007, you might be eligible for the Earned Income Tax Credit. Workers who qualify for the EITC and file a federal (and New Jersey State) tax return can receive some or all of the federal income tax that was taken out of their pay during the year.  When the amount of the EITC exceeds the amount of income tax owed, the difference is paid back to the filer in the form of a rebate.

Additionally, taxpayers can file a return and claim the EITC for three prior years if not claimed previously.  There is no late filing penalty unless the worker owed income tax in the prior year (the amount owed to the IRS would be deducted from the EITC).

2007 FEDERAL EITC
Number of Children	Income Limit		Maximum Credit
	Single	Married
No Children (Age 25-64)	$12,590	$14,950	$428
1 Child	$33,241	$35,241	$2,853
2+ Children	$37,783	$39,783	$5,659

In addition to the income requirements, there are additional rules the taxpayer must meet in order to be eligible. For additional information about EITC, please click here.

New Jersey Earned Income Tax Credit (NJEITC)
The NJEITC is a credit for certain residents whose earned income does not exceed $20,000, has at least one "qualifying" child and is eligible for the federal EITC.  The credit reduces the amount of New Jersey tax owed and may also provide a refund, even if the taxpayer has no tax liability to New Jersey.  The NJEITC is calculated as 20% of the Federal earned income credit.

For specific tax questions, contact the Internal Revenue Service at 1.800.TAX.1040, or the New Jersey Department of Taxation at 1.888.895.9179, or visit their website at www.state.nj.us/treasury/taxation.

Free Tax Help is Available!
NORWESCAP, a non-profit community action agency, provides free tax help to community members through Volunteer Income Tax Assistance (VITA) sites. VITA sites are located throughout the county at various community and government organizations.

Please visit our free tax help section or call 2-1-1 for a list of VITA sites in Morris County.

How Can You Be Involved?
If you are not eligible for the tax credit, you can still be involved in the campaign. Offer your talents and service by becoming a VITA volunteer. No experience is necessary and the IRS provides free training. Volunteers help people with basic tax returns and can also assist with intake, quality review, and site management. To become a VITA volunteer, please contact NORWESCAP at 973.784.4902.

For more information about United Way of Morris County's EITC Awareness Campaign, please email Melissa Wankmuller or phone 973.993.1160, x.122.