Doing your taxes is not fun and not cheap for most people. There is a better way and it is free to qualifying families using various available tax assistance programs. The Earned Income Tax Credit (EITC) was established by federal law in 1975 and is administered by the Department of the Treasury. EITC is a refundable tax credit that provides a tax break for low to moderate-income workers and families with employment income. The EITC table below shows the maximum credit you can receive based on income level and family size for tax year 2023.
| Number of Children Claimed | Single/Head of Household or Widowed, Income Must be Less Than | Married Filing Jointly, Income Must be Less Than | Maximum Federal Credit |
|---|---|---|---|
| 0 | $17,640 | $24,210 | $600 |
| 1 | $46,560 | $53,120 | $3,995 |
| 2 | $52,918 | $59,478 | $6,604 |
| 3 or more | $56,838 | $63,398 | $7,430 |
Tax Assistance Programs
Free assistance to prepare and file your federal income tax return is available from a number of organizations and programs. You can choose which one is best suited for you. They include:
United Way offers several choices. Visit MyFreeTaxes.com for details on the 2023 tax year programs. Regular operations will begin in late January, 2024.
You can do your own taxes online with an IRS Free File provider. If your household’s Adjusted Gross Income (AGI) is $73,000 or less, you may qualify for their Guided Tax Preparation Service. A Free File Fillable Forms service is an option for household’s with an AGI above $73,000. To obtain free tax preparation services you must start searching for a tax provider at the Free File link, https://apps.irs.gov/app/freeFile. If you go to a for-profiit company’s website first, you may be charged a fee. You decide which software company to choose.
GetYourRefund.org is a nonprofit organization that connects you with an IRS certified tax preparer from the VITA program for free. It specializes in taxpayers who have several years of taxes to file, have not filed taxes before, or have a lot of questions their tax return and want personal support. It will reopen January 31.
The Volunteer Income Tax Assistance (VITA) program offers free tax help to people who generally make $60,000 or less. IRS-certified volunteers provide free basic income tax return preparation with electronic filing to qualified individuals. AARP Foundation’s Tax-Aide also provides in-person and virtual tax assistance. Visit the IRS VITA/TCE Locator Tool to find a local site near you. Most sites do not open until late January, some requiring appointments, some offering in-person visits. Call ahead.
Residents of South Jersey, including Atlantic, Burlington, Camden, Cape May and Cumberland Counties, as well as residents of Philadelphia and Montgomery County, can get tax preparation help from the non-profit Campaign for Working Families.
Direct File is an IRS pilot that allows eligible tax filers to electronically file their 2023 federal tax return for free directly to the IRS. According to a recent IRS release, “the pilot will not be available to all eligible taxpayers immediately when the IRS begins accepting federal returns in early 2024.” Direct File will be rolled out in the following pilot states: Arizona, California, Massachusetts, New Hampshire, New York, Nevada, South Dakota, Tennessee, Texas, Washington state, and Wyoming.
Other resources & outreach
Agencies and organizations interested in promoting EITC are encouraged to visit the links below. Low and moderate-income workers can choose from these resources to learn more.
- Get It Back Campaign, sponsored by the Center on Budget and Policy Priorities.
- EITC Central has tools and information for IRS partners, community organizations, employers, government agencies and offices and tax preparers.
- EITC Assistant Use this calculator to determine if you are eligible for EITC.
- IRS Publication 596, Earned Income Credit
- IRS2Go, is an official and free mobile app of the IRS. You can check your refund status, find free tax preparation assistance, etc. Available at Google Play and the Apple Store.
- Join EITC Awareness Day – January 26, 2024
- NJ EITC Marketing Toolkit
A few facts worth considering…
- In 2022, 31 million workers received about $64 billion in EITC, according to the Internal Revenue Service.
- The average amount of EITC received nationwide is about $2000.
- Unfortunately, one in five households are not claiming EITC, leaving about $10 billion on the table
- Tax assistance programs, such as VITA, can save you up to $300 when you file for free.
- Filing electronically is the safest, fastest, and most accurate way to file your tax return.
Last updated: December 31, 2023
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