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Earned Income Tax Credit Information

United Way of Greater Knoxville has launched the Earned Income Tax Credit (EITC) campaign in order to better serve Knoxville low-wage earners and create lasting change in our community. The EITC is the largest federal anti-poverty program in the country, and it lifts millions of people above the poverty line each year. However, EITC is not welfare: it reduces taxes, supplements wages, and provides an incentive to work.

What is the Earned Income Tax Credit?:
Earned Income Tax Credit is a refundable credit for low-income taxpayers who work. The amount of the credit depends on income and family size. Whatever its size, the EITC is money that is often used to pay down debt or for other necessities, but it also can provide an opportunity to begin wealth-building activities, such as opening or contributing to a savings account. The wealth building potential that becomes available with the EITC is a real and tangible move toward self-sufficiency for the hard working people in our community, therefore making it an important project for United Way of Greater Knoxville.

The EITC campaign at United Way strives to make a difference in the lives of low-income community members in three important ways:
• Education and promotion of the economic benefits of EITC both to the individual and community at large

• Endorsement and support of free tax preparation sites; education about predatory lending practices and the costly fees associated with “rapid refund” loans or Refund Anticipation Loans (RALS)

• Promotion of and education about financial literacy opportunities in our community
Who is eligible?
You may qualify for FREE tax preparation and a refund through the EITC. If so, you could save thousands for your family’s future.

• The EITC credit is a refund from the IRS of up to $4,891 for families earning less than $50,270 annually.

• Applicants must be a U.S. citizen or resident alien all year or a nonresident alien married to a U.S. citizen or resident alien and choose to file a joint return and be treated as a resident alien.

• The EITC does not affect your eligibility for TANF, Medicaid, Food Stamps, SSI or subsidized housing.

Items to bring with you:
• Your valid driver’s license or other photo id card.
• Social security cards or a Social Security number (SSN) verification letter for all persons listed on the return.
• Birth dates for all persons listed on return.
• A copy of last year’s federal and state return if you have.
• All income statements: Forms W-2 and 1099, Social Security, unemployment, and other statements, such as pensions, stocks, interest and any documents showing taxes withheld. If self-employed or your own or run a business, bring records of all your income.
• All records of expenses, such as tuition, mortgage interest, or real estate taxes. If self-employed or you own or run a business, bring records of all your expenses.
• A copy of last year’s state and federal returns, if on hand.
• Bank routing numbers and account numbers to direct deposit any refund
• Dependent child care information: name and address of who you paid and either the caretaker’s SSN or other tax identification number.
• Both spouses to sign forms to e-file your joint tax return.

Information about free tax preparation sites and hours of operation may be obtained by calling 2-1-1 or go www.211TN.org.

If your organization would like promotional materials, to schedule a presentation, or to otherwise get involved, contact Marie Alcorn at 865-521-5565, alcornm@unitedwayknox.org.

For more information, contact: www.irs.gov

This project is funded under an agreement with the Tennessee Department of Human Services.