IRS and Partners alert Low- and Moderate-Income Workers of Significant Tax Benefit

Posted on January 30, 2013 

IRS and Partners alert

Low- and Moderate-Income Workers of Significant Tax Benefit


Alaska residents received $93.5 million last year


Anchorage – The Internal Revenue Service wants to raise awareness about a tax credit that could mean thousands of dollars to working families in Alaska.

The IRS is partnering with state and local government officials and community partners for today’s 7th annual EITC Awareness Day, a nationwide effort to increase public awareness about the Earned Income Tax Credit and free tax preparation sites.

Last year, around 47,306 families in Alaska received approximately $93.5 million in EITC with an average amount of $1,978. In the Alaska Borough alone, some 18,795 families received approximately $38 million in EITC, with an average amount of $2,032. For the Fairbanks North Star Borough 6,486 tax returns claimed EITC, which brought $13 million back into the community, with an average amount of $2,101 per return.

"About a third of the people eligible for EITC changes every year, probably because they get a job or lose one, have a child or change their marital status,” said IRS spokesman David Tucker II. “This changing population of people who are eligible is why it’s so important to raise new awareness every year.”

People who work and earn less than $50,270 from wages, self-employment or farming may be eligible for EITC and free help preparing their tax return.

Although an estimated four out of five eligible workers and families get the credit, one in five still miss out, either because they don't claim it when filing, or don't file a tax return. This is money that can make a difference. Nationally last year, the credit returned close to $62 billion to more than 27 million workers.

The credit can mean up to $475 in EITC for people without children, and up to $5,891 for those with three or more qualifying children.  EITC varies by income, family size and filing status. People can see if they qualify by visiting IRS.gov and answering a few questions using the EITC Assistant.

To get the EITC, workers must file a tax return, even if they are not required to file, and specifically claim the credit. Those eligible for the EITC have free options to file a tax return to claim the credit:


  • Free File on IRS.gov Free brand-name tax software walks people through a question and answer format to help them prepare their returns and claim every credit and deduction for which they are eligible. The program also allows people to file electronically for free, using Free File Fillable Forms, which are online versions of our paper forms designed for taxpayers comfortable preparing their own returns.

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  • Free tax preparation sites EITC-eligible workers can seek free tax preparation at thousands of Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) sites. To locate the nearest site, taxpayers can search www.IRS.gov or call the IRS at 800-906-9887. Taxpayers can also find VITA/TCE sites by calling their community’s 211 or 311 line for local  services.

  • IRS Taxpayer Assistance Centers EITC-eligible workers can seek free assistance in IRS locations across the country. Locations are listed online at www.IRS.gov. Hours and services offered vary by location and should be checked before visiting.

More information on EITC and detailed eligibility rules are available at www.irs.gov/eitc. IRS partners should also visit EITC Central at www.eitc.irs.gov for helpful resources.

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EITC FACTS:

EITC is for workers whose income does not exceed the following limits:


  • $45,060 ($50,270 married filing jointly ) with three or more qualifying children
  • $41,952 ($47,162 married filing jointly) with two qualifying children
  • $36,920 ($42,130 married filing jointly)  with one qualifying child
  • $13,980 ($19,190 married filing jointly) with no qualifying children

  Investment income must be $3,200 or less. And, children must meet certain relationship
   and residency requirements to be a qualifying child.

EITC can make life a little easier. The maximum credit is:


  • $5,891 with three or more qualifying children
  • $5,236 with two qualifying children
  • $3,169 with one qualifying child
  • $475 with no qualifying children

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