ALEXANDRIA, Va.—NCUA is joining the Internal Revenue Service and other federal agencies to remind qualified taxpayers about the potential benefits of applying for the Earned Income Tax Credit (EITC).
“Low-income working families can receive a substantial benefit if they qualify for the EITC,” NCUA Board Chairman Debbie Matz said. “We want to be sure credit union members who might qualify are aware of this credit. It goes directly to families who may use it to cover living expenses, build emergency savings or save for a down payment for a car or a home.”
Taxpayers who qualify and claim the credit could pay less federal tax or even receive a refund, NCUA said. The maximum refund for the 2015 tax year is $6,242.
Consumers can find more information about the EITC on NCUA’s consumer website, MyCreditUnion.gov, which has a webpage dedicated to explaining the EITC.
NCUA said it is issuing the reminder in conjunction with EITC Awareness Day, a nationwide effort to raise awareness about the EITC and the availability of free tax preparation assistance.
“Many credit unions offer their members help with preparing tax returns or participate in the Volunteer Income Tax Assistance program, an IRS-sponsored program that provides free tax-filing assistance. Credit union members who would like help are encouraged to contact their credit union to find out what resources are available,” NCUA said.
The EITC is a benefit for working people with low to moderate income. Congress originally approved the tax credit in 1975 to partially offset the burden of Social Security taxes and to provide an incentive to work. Income and family size usually determine the amount of credit, but individuals without children may also qualify.