Treasurer Kennedy Reminds Working Families to Claim Earned Income Tax Credit

                                                         Louisiana Families Can Get a Tax Break of Up to $4,536

BATON ROUGE, LA – State Treasurer John Kennedy is encouraging working families in Louisiana to take advantage of an important but often overlooked federal tax break known as the Earned Income Tax Credit (EITC).

“The EITC rewards two things – hard work and family,” said Treasurer Kennedy. “Last year, the tax credit helped more than 22 million people nationwide collect $41 billion, but there are still Louisiana citizens who do not know about it. Everyone in our state who qualifies for the EITC should take advantage of it.”

The federal EITC provides workers 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. According to the IRS, the maximum EITC for the 2006 tax year is $4,536 for families with two or more qualifying children. The Department of Social Services estimates that over a year’s time, this can mean up to a $2 an hour raise for some recipients.

Last tax year, 460,000 Louisiana citizens received more than $1 billion in earned income tax credits. However, it is estimated that each year more than 90,000 taxpayers in the state qualify for nearly $100 million in federal earned income tax credits and do not claim them.

“Families who do not claim the EITC are leaving money on the table,” said Treasurer Kennedy. “The federal tax credit is one more way Louisiana citizens can hang on to more of the money they’ve worked so hard for.”

To qualify for the EITC, an individual taxpayer must have an adjusted gross income of less than $36,348 with more than one qualifying child ($38,348 if married filing jointly), less than $32,001 with one qualifying child ($34,001 if married filing jointly) and less than $12,120 with no qualifying children ($14,120 if married filing jointly).

The Louisiana Department of 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.

                                                                                                       ###