Although a few tax situations may exceed the scope of the aid provided by VITA, the volunteers can assist with most typical tax situations, including those involving wages and earnings from self-employment, interest and unemployment income, Social Security benefits, dividends and returns that involve child tax, education or earned income credits
This fact is the result of gender income gaps, part-time employment and inadequate work grants (earned income credits
* Due to fraud, another permanent provision included in the new law enforces that earned income credits
or child tax credits cannot be filed for in amended returns, claiming those credits for any year that the taxpayer did not have a valid social security number or ITIN.
"Providing access to free online tax services that assure lower-income members receive earned income credits
and other state and federal tax credits is of tremendous value," Moody said.
Some typical items for which the IRS requests verification include alimony, moving expenses, various itemized deductions, casualty losses, employee expenses, Schedule C receipts and expenses, foreign tax credits, earned income credits
and education credits.
A $1,000 child tax credit is extended, and roles expanding earned income credits
for larger families and married couples are added.
The preparer then changed the auditor's filing status from single to head of household, increased the dependency exemptions claimed, and qualified the auditor for both the child tax and earned income credits
. This increased the refund from $100 to $6,000.
The bill protects, in bankruptcy cases, earned income credits
given to lower-income working families by federal tax law.
The January change was boosted by cost-of-living adjustments to several Federal transfer payment programs, by increased Earned Income Credits
, and by pay raises for Federal civilian and military personnel.
* Inform workers about state earned income credits
. Currently, workers in Minnesota, New York, Vermont, and Wisconsin can get a refundable state EITC in addition to their federal EITC.
Exhibit I on page 319 compares the current effect on taxes and earned income credits
to the future loss of social security benefits when $100 is sheltered in a medical care FSA.