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Show IRS may owe money to customers Did you know that the IRS might owe you money even if you paid no income tax in 1989? That's right! All working single and two-parent families that have at least one child living at home for at least half a year and had a gross income of less than $19,340 in 1989, are probably eligible for Earned Income Credit (EIC). This year the credit can be worth as much as $910. A check could be sent direct to the family from the IRS. Eligible families can get a check even if they earned too little to owe any income tax. If an eligible eli-gible family has not claimed the credit for the past three years they can do so this year. The Earned Income Credit can be obtained in two ways. One method is to file a federal income tax return (form 1040 or 1040A). Eligible families do not even need to claim the EIC on their 1040 or 1040A tax forms. As long as these families file the return, the IRS will calculate their credit for them and send them a check. Those who do not owe any taxes can file their tax return any timethey will not be penalized if they miss the April 15 deadline. A second method is to have their employer add it to their pay over the course of a year by filling out form W-5. When EIC benefits are added into an employee's paycheck throughout the year, the employee is said to be receiving EIC "advanced payments." The term "advanced payment" is used because the employee is receiving the Earned Income Credit in advance ad-vance of filing an income tax return for the year. For many families, the EIC may be the most effective when it supplements sup-plements earnings throughout the year and helps meet the cost of ongoing necessities. Unfortunately, however, many families are effectively effec-tively denied this option to receive EIC advance payments because they do not know the option exists. If a family does owe federal income in-come tax, the EIC will reduce the amount that it owed Eligible families are encouraged to ask their employer about the EIC, or call their local Internal Revenue Service office, or to call the IRS toll free hotline at 1-80024-1040. Individuals may also contact local volunteer IRS clinics (Volunteer (Vol-unteer Information Tax Assistance, or VITA, offices) during the tax filing fil-ing season. They may also call the number listed in the phone book for the local IRS office or call the toll free number listed above. |
