Then you qualify for the Earned Income Tax Credit of $399! But what if your employer didn't deduct that much from your pay checks? The IRS will refund you the difference! So, let's say in your employer deducted $300 from your checks in 2005 which he sent to the IRS as your tax obligation. You work out your 1040 and discover that you don't owe any taxes. You apply for a refund. How much will you get back? $300? No. You will get back $399! You get back more than you paid in! Couples with children can get as much as $4,400.00 even if they did not pay it in! Here are the Qualifications. straight from the IRS website.
Keep in mind: Both political parties favor this method of assisting the poor. Why? Only the working poor get it. This benefit goes only to those who have W-2s and file income tax returns. In other words, it is an incentive to work, not just collect govenment money. This is a big government program for the working poor. Hundreds of millions of dollars go unclaimed because the working poor don't know how to get it.
Beware of companies like H&R Block. They just settled several law suits involving millions where the issue was
scamming the working poor out of a portion of this money. In the settlement, they admitted no guilt, of course.
Companies like this operate like pay day loan companies and charge through the roof. Here is an article about how they did it in New York.
If you think you qualify and need help in filling out forms, there are people who will help you at no cost or at a smaller rate. In Portland Oregon, check with CASH at www.cashoregon.org.
Good luck on Friday, the thirteenth!
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