New Bedford Residents Encouraged to File for the Earned Income Tax Credit

The Community Economic Development Center of Southeastern Massachusetts (CEDC) is joining with Mayor Scott W. Lang to encourage the residents of New Bedford to learn about the Earned Income Tax Credit (EITC) to see if they are eligible to claim this benefit when filing their tax return. The Internal Revenue Service defines the Earned Income Tax Credit as “a refundable federal income tax credit available to eligible low-income working individuals and families.” While the EITC is the federal government’s largest program benefiting working families, it is largely underutilized.

According to the Internal Revenue Service the EITC provided refunds to 9,599 households in New Bedford during the 2009 Tax Year, totaling $20.8 million in tax credits with an average of $2,171 per household.  “When working families do not claim the Earned Income Tax Credit, a refund they have worked for and are entitled to receive, they are throwing away an opportunity to reclaim what they need most-resources to care for their families and improve their quality of life,” said Mayor Lang.

Community Economic Development Center Director Corinn Williams said each year her organization staffs a Volunteer Income Tax Assistance Program site where residents who are unable to prepare their own taxes and cannot afford professional can go for assistance. “There are still many working families and seniors in our community who may qualify to get money back, but are not aware they need to file to receive their refund. Dollars reclaimed through the Earned Income Tax Credit and the Senior Circuit Breaker give a boost not only to these families but it helps our local economy as well,” said Ms. Williams.

The federal government announced the new maximum credits as follows:
•$5,666 for a family with 3 or more qualifying children
•$5,036 for a family with two qualifying children
•$3,050 for a family with one child
•$457 if there are no children

The government also announced the new income limits at:
•$43,352 ($48,362 if married filing jointly) for families with three or more children
•$40,363 ($45,373 if married filing jointly) for families with two children
•$35,535 ($40,545 if married filing jointly) for families with one child
•$13,460 ($18,470 if married filing jointly) if there are no children.

Investment income must be $3,100 or less and children must meet certain age, relationship and residency requirements.  “I urge the people of New Bedford to learn whether they qualify for this benefit and to utilize the tax preparation services offered by agencies like the Community Economic Development Center and PACE to claim this credit on their 2010 tax return,” said Mayor Scott W. Lang.

For more information please contact the CEDC at (508) 979-4684 or PACE at (508) 999-9920.