Thousands of dollars in tax credits could be available to Louisiana residents who don’t earn enough money to require a federal tax return. The Earned Income Tax Credit (EITC) is a refundable tax credit for low-income working families and individuals and is the federal government’s largest program benefiting lower-income workers. It is time to inform Louisiana’s eligible citizens about this valuable tax break and to let them know what they need to do to claim it.
Single or married people who worked full-time or part-time at some point during the year can qualify for the EITC, depending on their income. Qualifying persons who file a federal income tax return can receive a refund even if no taxes were taken out of their pay during the year. All filers who are eligible to claim the federal EITC are automatically eligible for the state EITC. Louisiana’s first state EIC takes effect in tax year 2008, and can be claimed on state income tax returns this spring. The state credit is equal to 3.5% of the federal credit. This will result in an additional refund of up to $168 for eligible Louisiana tax filers.
Volunteer Income Tax Assistance (VITA) sites throughout Louisiana provide FREE tax help to low-and moderate-income taxpayers to determine eligibility and to file the claim for the credit. There are over 170 free income tax assistance services located throughout the state. To find the site nearest you, call the Louisiana Department of Social Services toll free number, 1-888-LA-HELP-U (1-888-524-3578), between now and April 15, 2009. This information can also be obtained by calling 2-1-1.
For additional information on filing your state income tax return, visit the Louisiana Department of Revenue.