Earned Income Tax Credit, IRS Smartphone App and Free Tax Assistance
January 28th marked the fifth Earned Income Credit Awareness Day, and the IRS used the publicity to urge taxpayers to check their eligibility for the EITC, one of the federal government’s largest benefit programs available.
For 2010 tax returns, the maximum credit for workers with three or more qualifying children is $5666. However, the IRS iterated that workers without qualifying children may still qualify for a smaller amount. Eligibility for the credit is based on various qualifications including earnings, filing status and eligible children.
Doug Shulman, IRS commissioner, explained, “Millions of workers who did not earn high incomes claimed the EITC last year. The IRS encourages all eligible taxpayers to claim this valuable credit. Together with our partners, we can help taxpayers file their returns and get the EITC.”
In order to claim the credit, taxpayers must file a return, even if they have no filing requirement. To verify eligibility, visit the IRS’s website and type ‘EITC’ into the search box. An online EITC Assistant will walk taxpayers and/or their preparers through the process. Eligibility requirements and other information about the EITC can be found on the IRS website.
IRS2Go Smartphone Application is a Go
On January 24th, the IRS released its first smartphone application, known as IRS2Go, which informs taxpayers on the status of their tax refund while also helping them obtain tax information when necessary. By entering basic information—Social Security number (which is encrypted), filing status, and the amount of their return—taxpayers can receive up-to-date information on their return and when they’ll be receiving it.
IRS Commissioner Doug Shulman said, “This new smart phone app reflects our commitment to modernizing the agency and engaging taxpayers where they want when they want it. As technology evolves and younger taxpayers get their information in new ways, we will keep innovating to make it easy for all taxpayers to access helpful information. This phone app is a first step for us. We will look for additional ways to expand and refine our use of smartphones and other new technologies to help meet the needs of taxpayers.”
Free Nationwide Tax Assistance
If individuals cannot afford your services, chances are they qualify for free tax preparation help. Knowing where to refer them would be a valuable service to offer.
On January 28th, the IRS announced the availability of 12,000 free tax preparation sites that are open nationwide this year in efforts to provide help for low- to moderate-income and elderly taxpayers.
The IRS Volunteer Income Tax Assistance (VITA) Program provides the free service to those earning less than $49,000 and to those 60 and older. The IRS has partnered with Armed Forces Tax Council (AFTC) in order to provide tax assistance to military personnel and their families. IRS Free File will still be available to those taxpayers who want to prepare their own tax returns.
For more information on how individuals can access these services, visit the IRS website.
Become a Professional Tax Preparer
Are you prepared for new IRS tax preparer regulations? If not, it’s time you enrolled in UAC’s Professional Tax Preparer (PTP) Program. What you might spend on Universal’s training will return in spades next tax season. Not only is your potential client base huge, but the new IRS regulations are bound to decrease your competition in the future. That means many businesses and individuals will be looking for qualified professionals to prepare and file their tax returns. As a Professional Tax Preparer you could enjoy the benefits of a lucrative and rewarding practice offering tax services.
Tax professionals charge 100 + an hour providing planning and preparation services to clients. In the course of one tax season, many tax preparers earn what others take an entire year to bring in. Universal’s PTP Program will enable you to help your clients save enough money in taxes to more than cover your fees. Call UAC to learn more at 1-877-833-7909.
