Wednesday, March 10, 2010
Personal Income Tax Tip #6: The Federal Earned Income Tax Credit and the WV Family Tax Credit
WV State Tax Commissioner
Christopher G. Morris
Life is a little easier with the federal Earned Income Tax Credit (EITC) and the West Virginia Family Tax Credit (WVFTC). Both tax credits are designed to help working people.
The EITC is a federal tax credit applied against federal income tax for people who work, and earn low to moderate incomes. Taxpayers who qualify and claim the credit could pay less federal tax, pay no tax or even get a tax refund.
The West Virginia Family Tax Credit (WVFTC) against West Virginia personal income tax, and is available individuals or families as specified in the credit law. The WVFTC may reduce or eliminate their West Virginia personal income tax. In Tax Year 2008, nearly 75,000 West Virginia personal income tax filers claimed the WVFTC for a total of $12.8 million. For the second year, the maximum WVFTC is 100% of the taxpayer’s pre-credit income tax liability. That means bigger refunds could be coming to those who qualify.
Each tax credit has different qualifications taxpayers must meet in order to claim the credit. To qualify for the EITC for Tax Year 2009, taxpayers must have adjusted gross income of less than:
■ $13,440 ($18,440 if married filing jointly) with no qualifying children.
■ $35,463 ($40,463 if married filing jointly) with one qualifying child.
■ $40,295 ($45,295 if married filing jointly) with two qualifying children.
■ $43,279 ($48,279 if married filing jointly) with three or more qualifying children.
■ Special rules may apply for members of the U.S. Armed Forces and taxpayers in designated major disaster areas.
■ Additional qualifications apply. Visit www.eitc.irs.gov for more information.
You may be eligible for the 2009 WVFTC if:
■ Your modified gross income was equal to or less than $2,700 above the federal poverty guideline income for 2009.
■ You made less than $39,710 in 2009.
■ Additional eligibility requirements must be met. Additional details can be found on page 40 of the IT140 tax booklet.
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, there is always one in a community that can’t stand to have a good time without DRAMA. Ours was and is Mrs. W. (and just 2 vowels).