April 22, 1994
Eligible Workers Can Boost Their Take-Home Pay
WASHINGTON - Even as it continues to process the truckloads of
mail resulting from last week's tax filing deadline, the Internal
Revenue Service begins sending letters today to 10 million filers,
telling them they don't have to wait until next year to get money
back from the government.
The IRS is notifying taxpayers who claimed the Earned Income
Tax Credit (EITC) on their 1993 returns that if they expect to claim
the credit again this year, and have a qualifying child living with
them, they can have advance payments of their credit added to their
paychecks during 1994.
These advance payment can be up to 60 percent of the EITC
amount, with the rest claimed on the tax return for the year. The
maximum monthly advance payment is $102 for a person earning between
$645 and $916 a month. To qualify for the EITC in 1994, a
taxpayer's income for the year must be under $23,755.
The IRS mailout will include Form W-5, the form eligible
workers must give to their employers to receive the advance
payments. The form also explains who is eligible for the advance
The IRS expects to send additional mailouts in July and
September to remaining 4.2 million taxpayers who will have claimed
the EITC on their 1993 returns.
IRS centers are working around the clock to process the
millions of returns mailed at or near the filing deadline. Based on
the centers' mail volumes at the beginning of this week, it appears
that many taxpayers again waited until the final days to mail
returns with payments. As April 15, the IRS had received 82.8
million returns and sent out 51.7 million refunds, worth $53
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