It’s tax time, and the United Way of Shawano County wants you to know about credits available for low and moderate income families.
An important federal credit is the Earned Income Tax Credit. If you have children, you may also be able to receive the WI EITC. This credit is designed to help workers who earn lower wages at a full- or part-time job. Wages vary based on filing status and number of children. To give you an idea, a single person with no children can earn no more than $14,590 to qualify and a married couple with two children would have to make less than $49,186. The maximum amount a single person with no child can receive is $496. Amounts increase with married couples and those with children. The maximum amount is $6,143.
If you would like some help determining how much you are eligible for, check out the IRS interactive EITC Assistant, at www.irs.gov/eitc. People can answer a few questions about income, family size and filing status, among other things. The EITC Assistant will help determine eligibility and will figure an estimated EITC refund. You can even get a printout explaining why you do or do not qualify. Last year, in Shawano County nearly 2,800 eligible workers and families received more than $6,000,000 total in EITC, with an average EITC amount of $2,169.
You have to file a tax return to claim EITC, even if you are not required to file according to tax guidelines. Each year about 20 percent of eligible taxpayers do apply for EITC and miss out on the refund. Unlike most deductions and credits, the EITC is refundable. In other words, those eligible might get a refund from the IRS even if they owe no tax.
A Wisconsin credit worth looking into is the Homestead Credit. The homestead credit program is designed to soften the impact of property taxes and rent on persons with lower incomes. A homestead credit claim may be filed by both home owners and renters. The credit is based on your income and the amount you pay for either rent or property tax. To get the credit, you much file schedule H and provide a copy of your property tax bill for property owners and rent certificate signed by your landlord for renters. The certificate is available in the Schedule H instruction book or online on the Wisconsin Department of Revenue website.
United Way sponsors free help for taxpayers earning up to $53,000 through the VITA tax program. Appointments are available by calling the following local sites: CoVantage Credit Union, 715-524-8200, ext. 3226; Pulaski Senior Center, 920-822-8100; Gillett Public Library, 920-855-6224; and Keshena site, 715-799-5139.
A walk-in service is also available from 8 a.m. to noon Monday, Tuesday and Wednesday at the Keshena site, 559 Library Road.
Another free option for tax preparation assistance is myfreetaxes.com. This site is free for taxpayers with an income less than $60,000. The site is sponsored by United Way, Goodwill, Walmart and the National Disability Institute.
For more information on the VITA program and Myfreetaxes, contact the Shawano County United Way office at 715-526-0238 or unitedwayofshawanocounty@gmail.com.
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