Lieu’s Message To Last-Minute Tax Filers: “Don’t Forget About The Earned Income Tax Credit”

Sacramento, CA – With the April 17 tax filing deadline close at hand, Assembly Member Ted Lieu is reminding taxpayers to check to see if they qualify for the federal Earned Income Tax Credit (EITC), a federal credit that could be worth more than $4,000 to qualified taxpayers.

The EITC is a refundable federal income tax credit for millions of working individuals and families. When the tax credit is more than the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.

To qualify, taxpayers must meet certain requirements and file a federal tax return, even if they did not earn enough income to be required to file. There’s more information available by contacting the Internal Revenue Service (IRS) at www.irs.gov/eitc or 1-800-TAX-1040. Taxpayers can even visit a Volunteer Income Tax Assistance Site for free help and tax preparation.

“It’s important for people to know that this isn’t a deduction off of taxes you owe; it’s real money that the government will send you,” Lieu said.  “You can get this even if you don’t owe taxes.”

This tax credit is our nation’s largest program for working families, but not enough families are aware that they are eligible. In fact, close to 750,000 eligible Californians do not collect the more than $1 billion in Federal Earned Income Tax Credits due to them.

The EITC has been the focus of much discussion and activity in Sacramento this year.  First Lady Maria Shriver has held town halls throughout the State to promote use of the credit.  Assemblymember Lieu has introduced AB 650, a bill that will create an enormous outreach effort by the Franchise Tax Board and California employers to encourage taxpayers to claim the EITC.

If only a portion of those who are not currently claiming the credit did so, it would be a massive infusion of Federal dollars into the State.  This would benefit local communities, and the State’s General Fund.

“It’s your money. Make sure get the tax refund that you deserve,” said Lieu.