many thousands Failing to Claim Tax Credit

Many Thousands in Bay State Failing to Claim Tax Credit Officials Say
By MassNews Staff
       State officials reported Tuesday that an estimated 75,000 Massachusetts workers are not taking advantage of a state and federal income tax credit. The Earned Income Tax Credit can save low-income workers an average of $1,500 a year on their federal taxes and $231 on their state wages. Although certain criteria such as income levels and family size must be met in order to qualify, it is estimated that nearly 15 to 25 percent of Massachusetts workers who qualify are failing to claim the credit, say revenue officials.
       "What has seemed extremely disappointing and worrying for us here in Massachusetts is that so many people who are eligible for this tax credit, in fact, aren't taking advantage of it," Lt. Gov. Kerry Healey stated at a press conference with advocates from Action for Boston Community Development. "This is a lot of money that should be in people's pockets who have been working very hard for this money."
       Working families with two children who earned less than $35,000 in 2004 can receive up to $4,900 in federal and state credits. Families who earned less than $30,000 and have one child can receive up to $3,000. Singles or families with no children who earned less than $12,000 can receive a credit of up to $450.
       "As we said, the EITC is very important, but to get it you have to file a tax return," said IRS Territory Manager William Smits. "A lot of low to moderate income families don't understand that. They don't think they're required to file, or because of the complexity of the tax code need help in filing a tax return."
       According to the Department of Revenue, more than $445 million in federal EITC credits was distributed to Massachusetts’ workers last year, while the state gave out an additional $70 million.
       Representatives from the Internal Revenue Service are teaming up with state officials, low-income advocates, and officials from the U.S. Department of Housing and Urban Development to inform more low-income residents and urge them to take advantage of the credit when they file their tax returns. Tax preparation assistance through low-income organizations and volunteers will be offered to low-income residents within the state until April 15.

Copyright 2004 ©All Rights Reserved MassNews.com® P.O. Box 5882 Holliston, MA 01746 781-237-2772