Treasurer Kennedy Reminds Working Families to Claim Earned Income Tax Credit
                                                   Louisiana Families Can Get Federal Tax Break Up to $4,716

BATON ROUGE, LA – State Treasurer John Kennedy wants to remind working families this tax season of an important and often overlooked federal tax break known as the Earned Income Tax Credit (EITC).

“Take a few minutes out from preparing your tax return to see if you qualify,” said Treasurer Kennedy. “There is still money out there that’s being left on the table. Everyone who qualifies for this federal tax break should take advantage of it.”

The EITC provides lower-income working individuals and families with a rebate of all or a portion of the federal income taxes they pay each year. In order to be eligible for the credit, an individual must have a job and must file a tax return. The federal credit is refundable, meaning that filers can claim the full amount even if it exceeds what they owe in taxes for the year.

In 2004, roughly 510,000 Louisianans claimed the federal EITC for a total of $1.1 billion. The federal government estimates that an additional 93,000 Louisiana residents miss out on $81 million in Earned Income Tax Credits each year.

According to the IRS, you may claim the EITC in 2007 if you earned less than:

-  $37,783 ($39,783 if married filing jointly) if you have more than one qualifying child;
-  $33,241 ($35,241 if married filing jointly) if you have one qualifying child; or
-  $12,590 ($14,590 if married filing jointly) if you do not have a qualifying child.

The maximum credit for the 2007 tax year is:

-  $4,716 with two or more qualifying children;
-  $2,853 with one qualifying child;
-  $428 with no qualifying children.

For families with very low incomes, the size of the EITC they are eligible for increases with each dollar of earnings. The Treasury has a link to EITC information, forms and publications from the IRS at www.latreasury.com. EITC information is also available by contacting the IRS directly at 1-800-829-1040.

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