Each year, thousands of hardworking families in the 34th Congressional District and throughout the Los Angeles area lose money they're entitled to because they fail to take advantage of two important tax credits  - the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC).  Could you be one of them?  As the April 17 deadline approaches for filing your taxes, I encourage you to find out whether you qualify for one or both of these credits.  The answer could mean more money in your pocket, even if you don't owe taxes.
 
If your family earned less than $37,263 in 2005, you may be eligible for the Earned Income Tax Credit.  Eligibility for the credit depends on factors such as your total income and family size.  For some families, the Earned Income Tax Credit is worth up to $4,400.  The funds are first used to pay any federal taxes owed by an eligible worker.  After any tax liability is paid off, tax filers receive all of their remaining Earned Income Tax Credit dollars in the form of a check from the IRS. 

The Child Tax Credit allows families to claim a credit worth up to $1,000 for each qualifying child under 17.  Similar to the Earned Income Tax Credit, the Child Tax Credit is first used to reduce or pay off any taxes owed by the family.  After that, depending upon a family's income, some filers might also qualify to receive a refund of all or part of any leftover Child Tax Credit funds.   

In 2004, I was pleased to support measures passed by Congress to permit more military families earning combat pay to qualify for both the Child Tax Credit and the Earned Income Tax Credit.  These tax credits provide a welcomed financial boost to our deserving men and women in uniform. 

Survivors of the Katrina, Rita and Wilma hurricanes in 2005 also need to be aware of tax changes passed by Congress last fall to help them receive the maximum refund possible for the 2005 tax year.  Under new legislation, which I supported, individuals living in a county designated a federal disaster area or who were evacuated before the hurricane struck, may qualify for greater tax relief.  For hurricane victims who need help with tax matters, the IRS has a dedicated toll free number to call, 1-866-562-5227.

Free tax preparation services from trained community volunteers are also available through the "Volunteer Income Tax Assistance (VITA)" program.  To find out if you qualify or for the Los Angeles locations nearest you, please visit www.eitc-la.com or call the 211 hotline or 1-877 348-2422.  Seniors can also locate free AARP tax-aide counseling sites in their area by calling 1-888 227-7669.

By taking advantage of the Child Tax Credit, the Earned Income Tax Credit and the free tax preparation services, eligible families can keep more of their hard earned dollars.  Additional eligibility information about both programs appears below.  Your questions can also be answered by calling the IRS at 1-800-829-1040 or by visiting the federal agency's web site at www.irs.gov.

Here are the highlights of the 2005 EITC eligibility requirements:

• A taxpayer must provide valid Social Security numbers for everyone listed on the tax return.  Social Security numbers issued to non-citizens who have permission to work legally in the United States are also accepted.
• Workers who were raising one child in their home and who earned less than $31,030 in 2005 (or less than $33,030 for married workers) are eligible for a federal EITC of up to $2,662.
• Workers who were raising two or more children in their home and who earned less than $35,263 in 2005 (or less than $37,263 for married workers) are eligible for a federal EITC of up to $4,400.
• Workers who were not raising children in their home, were between 25 and 64 on December 31, 2005, and who earned less than $11,750 in 2005 (or less than $13,750 for married workers) are eligible for a federal EITC of up to $399.
• Eligible EITC taxpayers who failed to file previously can file amended tax returns for the past three years to collect overdue refunds

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The 2005 Child Tax Credit eligibility requirements are as follows:

• The taxpayer must have either a Social Security number or an Individual Taxpayer Identification Number issued by the IRS.
• The taxpayer must have a qualifying child under the age of 17 who lived with the tax filer for more than half the year in the United States.  The child (whether a citizen or non-citizen) must have either a valid Social Security number or an Individual Taxpayer   Identification Number (ITIN).
• The taxpayer must have earned more than $11,000 in 2005 to receive a CTC "refund."
• The CTC is available to married couples filing jointly with incomes up to $110,000, $75,000 for those filing as single, head of household or as a qualifying widow(er) and $55,000 for married couples filing separately.  At incomes above these amounts, the benefit of the CTC is reduced.

Eligible CTC taxpayers who failed to file previously can file amended returns for the past three years to collect overdue refunds.
I hope you find this information beneficial.

(Congresswoman Lucille Roybal-Allard's office offers a wide variety of services to the community, including financial aid workshops, a service academy workshop, a scholarship directory and constituent casework services to assist district residents in resolving problems with federal agencies such as the Internal Revenue Service, the U.S. Department of Veterans Affairs and the Social Security Administration.  More information about federal services can be obtained by visiting Congresswoman Roybal-Allard's web site at www.house.gov/roybal-allard or by calling her district office at (213) 628-9230.)
 

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