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February 16, 2009                                                                  

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Rep. Tyler Olson, 515-281-3221

 OLSON REMINDS WORKING FAMILIES TO FILE
FOR EARNED INCOME TAX CREDIT

Des Moines, Iowa – State Representative Tyler Olson of Cedar Rapids reminded working families today to claim the Earned Income Tax Credit on their 2008 taxes.  Working families that meet certain income requirements and have more than one child could receive a refund up to $4,824.

“Thousands of hard-working, middle class families are struggling to pay their bills in these tough economic times, but don’t realize they are eligible for a refundable tax credit when they file their 2008 federal and state income taxes,” said Olson.  “As Iowans begin work on their taxes this season, I want to make sure everyone who is eligible claims the credit.”

Workers with one child and earning less than $36,995 in 2008 are eligible for a tax credit up to $2,917.  Workers raising more than one child with income less than $41,646 can get up to a $4,824 credit.  Working individuals between the ages of 25 and 64 who are not raising children in their home and had income less than $15,880 are eligible for a $438 tax credit.

The EITC is now the largest federal cash benefit to low-income workers, surpassing welfare benefits in total dollars nationwide.  Two years ago, in a bill floor-managed by Rep. Olson, Iowa expanded eligibility for the EITC on state taxes and made the credit refundable for Iowa families.  This important program provides an incentive to work, can raise working families above the poverty level, and encourages local spending and economic development.

According to the Internal Revenue Service, about 25% of eligible workers don’t claim the credit.  For more information or assistance on the EITC, call 1-800-829-8482 to find your local tax assistance site or log on to www.irs.gov.

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