February 26, 1992
More Workers Benefit from
Revised Earned Income Credit
WASHINGTON - More lower-income workers with children are
benefiting from the Earned Income Credit (EIC), according to an
Internal Revenue Service analysis of early tax returns. Changes in
this tax credit have enables more people to qualify for it and have
made it more valuable for those who do.
Taxpayers claimed the EIC on 35 percent of January's tax
returns, compared to 28 percent for January 1991. The total number
of returns for the month increased from 2.5 to 3 million.
Early filings typically have more EIC claims. For all of last
year, about 11 percent of returns claimed EIC.
Workers who have a child living with them and have income under
$21,250 may claim the EIC. In addition to the basic credit, there
are two supplemental credits -- one for those who paid for health
insurance covering a child and one for those who had a child born
during the year. A taxpayer claiming the three maximum credits could
save $2,020 in taxes.
If the EIC is more than a person's tax, the IRS will refund the
difference. Some people who owe no income tax but qualify for the
EIC can get a refund check by filing a tax return.
The new Schedule EIC is used to claim the credit and may be
attached to either Form 1040 or 1040A. Both tax packages had the
Schedule EIC when they were mailed. Taxpayers who want IRS to figure
the credit for them must complete only a few lines of the schedule,
then attach it to their return.
The free IRS Publication 596, "Earned Income Credit," has
complete details about the credit. It is also available in Spanish
-- Publication 596SP, "Credito por Ingreso Del Trabajo." Both
booklets and the Schedule EIC are available from the IRS by calling,
toll-free, 1-800-TAX-FORM (1-800-829-3676).
As of February 21, the IRS had received nearly 34 million tax
returns, six percent more than the same time last year. Electronic
returns have increased over 50 percent, with 7.3 million filed.
Over 12 million refunds have been sent, 23 percent more than
last year. At $1,081, the average refund is up 13.5 percent.
Previous | Next
1992 IRS News Releases | News Releases Main | Home