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Show Certain Low Income Workers Eligible for Tax Credit Certain workers having income in-come less than $8,000 a year may be eligible for a tax credit of up to $400 on their 1975 tax returns, Roland V. Wise, Internal Revenue Service District Dis-trict Director for Utah announced an-nounced this week. '1 he credit, called the earned income credit, stems from a provision of the Tax Reduction Reduc-tion Act of 1975 that applies to workers maintaining a household house-hold with their child or stepchild under 19 years of age or a full time student who may be claimed as their dependent, Mr. Wise said. To be eligible for the credit, the workers also must receive all thier income from sources inside the United States. Although both single and., married persons can qualify for the earned income credit, married taxpayers must file a joint return to claim the credit, . the IRS official added. Taxpayers who are eligible subract the credit from any income tax due, thereby reducing any tax bill. When no tax is owed, however, the credit can increase any refund due, or even result in a refund when none was due, he said. To receive the credit, Mr. Wise pointed out, a taxpayer must file a return-either a 1040 or 1040A-even if no tax was withheld during the year. Mr. Wise said that the Form 1040 and 1040A tax packages mailed to taxpayers provide instructions on claiming the earned income credit. Taxpayers Taxpay-ers living in Salt Lake City who have questions after reading the instructions can call the IRS by dialing 524-4060. Residents in other areas of Utah should dial, toll free, 1-800-622-5370. |
