By Sarah Glorian
Here again is my January tax column to remind you to start pulling your paperwork together. Many low- to moderate-income working families and individuals qualify for some or all of these credits (discussed below), but fail to claim them. So remind your family, friends and neighbors they should check to see if they are eligible.
There are various tax credits available to working families. Some credits allow you to receive an income tax refund, even if nothing was withheld from your 2016 paychecks. Some will only reduce taxes if you owe.
Earned Income Tax Credit (refundable)
Income limits for 2016 returns:
Filing status: Single, Head of Household or Surviving Spouse.
Children claimed:
• Zero, $14,880
• One, $39,296
• Two, $44,648
• Three or more, $47,955
Filing status: Married Filing Jointly
• Zero, $20,430
• One, $44,846
• Two, $50,198
• Three or more, $53,505
The maximum credit:
• $6,269 with three or more qualifying children
• $5,572 with two qualifying children
• $3,373 with one qualifying child
• $506 with no qualifying children
Investment income must be $3,400 or less for the year.
The IRS has a useful interactive program called EITC Assistant, which can be found at www.irs.gov.
Other credits
Child and Dependent Care Credits help households raising children (this type of credit reduces taxes you owe, i.e., does not increase a refund). Also go to: www.irs.gov.
Education Credits include two credits: the American Opportunity Tax Credit and the Lifetime Learning Credit. There are additional rules for each credit, but to initially see if you may be eligible, the following is required for both:
• You, your dependent or a third party pays qualified education expenses for higher education.
• The eligible student must be enrolled at an eligible educational institution.
• The eligible student is yourself, your spouse or a dependent you list on your tax return.
Free Tax Preparation and Filing Services:
You may be eligible for free assistance preparing and filing your income tax return. Go to: www.irs.gov/Individuals/Find-a-Location-for-Free-Tax-Prep for this year’s locations. Newrizons is the only provider listed thus far, but the list will be updated (typically other sites open in February; appointment usually required). Newrizons FCU is already accepting appointments; call (360) 533-4760.
AARP provides free tax help to people age 60 and older through its Tax-Aide program (located at several local libraries). For locations, go to Find a Tax-Aide location near you or call 1-888-OUR-AARP (1-888-687-2277). Locations will begin to post in late January.
You may also be able to file for free, check out: http://www.irs.gov.
To find out if you are eligible for Northwest Justice Project services:
For cases including youth (Individualized Education Program and school discipline issues), debt collection cases and tenant evictions, please call for a local intake appointment at (360) 533-2282 or toll free (866) 402-5293. No walk-ins, please.
For all other legal issues, please call our toll-free intake and referral hotline commonly known as “CLEAR” (Coordinated Legal Education Advice and Referral) at 1-888-201-1014, Mondays through Fridays 9:10 a.m. to 12:25 p.m. If you are a senior, 60 and over, please call 1-888-387-7111; you may be eligible regardless of income. Language interpreters are available. You can also complete an application for services at nwjustice.org/get-legal-help. Be sure to also check out our law library at: www.washingtonlawhelp.org.
