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Earned Income Tax Credit - NeighborWorks Umpqua

Tax Preparation Service and the Earned Income Tax Credit

Our tax preparation services and education are free offerings built to meet your needs. Below you will find more information on our tax preparation service, a way to volunteer, and information on the Earned Income Tax Credit.

Our 2020 tax season has ended. We are now looking for volunteers to participate in the 2021 tax season which will begin in November of 2020.

For future service locations and filing dates next year, follow us on Facebook.

Why offer Tax Preparation Service and Education?
NeighborWorks Umpqua is always looking for new and exciting ways to positively impact Southern and rural Oregon. Whether that is developing food systems infrastructure, producing and managing affordable housing, or creating one-of-a-kind events, depends on the intrinsic needs of the community. We are rigorous in researching emergent trends and needs in our more than six-county service area (Lane, Douglas, Coos, Curry, Josephine, and Jackson), having learned over the last 25 years the importance of proactivity. Tax preparation is the next emergent need in our communities because everyone in Oregon is leaving money on the table.

According to the Senate Majority Office with the Oregon State Legislature, in 2013 – the most recent year of available statistics – Oregon’s participation with Earned Income Tax Credit (EITC) was 74 percent, well below the 80-percent national average. We hope to increase that number by helping individuals file their taxes and participate in the EITC along with other tax credits that could be missed.

Looking for a new way to give back to Douglas and Coos County?

If you are interested in becoming part of an exciting new volunteer tax preparation service provided by NeighborWorks Umpqua please contact us. We need volunteers for the 2021 tax season in Roseburg and Coos Bay areas. No experience is needed, but all applicants need to commit to volunteer a minimum of 80 hours (40 training hours and 40 tax filing). After passing the IRS exams to be a volunteer preparer, our volunteers will work as a team to prepare and file taxes for individuals. This service will be provided free of charge to residents in Roseburg and Coos Bay areas.

How to Take Advantage of the Earned Income Tax Credit ⁠— Keep More of Your Earnings


What is the Earned Income Tax Credit?

The Earned Income Tax Credit (EITC) is a measure designed to support anyone earning wages through a tax refund.  This works by returning a portion of the federal taxes qualifying workers and families paid into the system.

NeighborWorks Umpqua is dedicated to making sure that workers in our communities get their fair share of the return that is rightfully theirs.  Below are some of the most common questions asked about the EITC.  We hope the answers help you determine if you, or someone you know, is owed Earned Income Tax Credit money from the federal government.

Who can apply?
As long as you file a tax return, you are able to apply for the Earned Income Tax Credit, although not everyone who files will qualify to get an EITC refund.  If you did not apply for the EITC refund before you prepared and sent your taxes, you can file for the EITC if you file an addendum/a correction. Check with your tax preparer or get more information here about applying for the tax years (https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant)
Who qualifies for the EITC refund?
To qualify, you must have earned income from working for someone or be self-employed, running or owning a business or farm.  You also must meet these basic rules:

  • You (plus your spouse if you are married) and your children have Social Security numbers.
  • You earn income either working for yourself or as an employee.
  • You do NOT use the Married Filing Separately filing status.
  • You are a U.S. citizen or resident alien all year, a nonresident alien married to a U.S. citizen or a resident alien and filing a joint return.
  • Someone else cannot claim you as a qualifying child for the EITC.
  • You do not have foreign earned income for which you must file Form 2555 or Form 2555 EZ.
  • You do not have income derived from investments greater than $3,400 in interest, dividends or other investment income
Do I have to earn really low income to qualify for an EITC refund?
Simply put, no.  You can be eligible based on your Adjusted Gross and Earned Income, if you are filing jointly with someone or separately and how many children/dependents are living with you.  You do not qualify for EITC if you are married but filing separately. For the income limits, visit: https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/do-i-qualify-for-earned-income-tax-credit-eitc


What is a “qualifying child” and how do I know if my child or children will qualify me for an EITC refund?
A qualifying child is a child who is in your household and in your care in the United States for more than half the year.

Relationship: A qualifying child can be your son, daughter, adopted child, step-child, foster child or a descendant of any of these, such as your grandchild. A qualifying child could also be your brother, sister, half-brother, half-sister, step-brother, step-sister or a descendant of any of these such as your niece or nephew

Age: At the end of the filing year, your qualifying child was younger than you (or your spouse if you are filing a joint return) and younger than 19; or at the end of the filing year, your qualifying child was younger than you (or your spouse if you are filing a joint return), younger than 24 and a full-time student; or at the end of the filing year, your qualifying child was any age and permanently and totally disabled.

Only one person can claim the same qualifying child. If a child qualifies for more than one person and one of the persons is a parent or parents, the non-parent can claim the child only if their Adjusted Gross Income is higher than the parent(s)

A qualifying child cannot file a joint return for the tax year unless the child and the child’s spouse did not have to file separately.

Be sure to ask your tax preparer if you have any questions about whether you have a qualifying child in your household. For more information on qualifying children, click here (https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/qualifying-child-rules)

Are there any restrictions that would make me not eligible when applying?
Unfortunately, there are certain types of income and payments that people received that are not considered earned income to qualify for the EITC refund. Here is a quick list of the types of income that alone would not be considered earned income for the EITC refund:

  • Child support
  • Retirement income
  • Social Security benefits
  • Unemployment benefits
  • Alimony
  • Earned income during incarceration

Below are some other types of income that are not considered for the EITC refund:

  • If you have foreign earned income for which you must file Form 2555 or Form 2555 EZ.
  • You have investments greater than $3,400 you are not considered eligible for the EITC refund

If you have any doubts or unsure if any of these types of incomes apply to you, please check with your tax preparer.

I didn’t make enough this year to need to file taxes. Can I get an EITC refund?
Yes, you can!  Workers who didn’t have income tax withheld or pay estimated income tax are eligible to receive the EITC refund. Since income tax is not the only form of taxation, you should file and apply for the EITC even if you have not made enough to make filing necessary.
I did not qualify last year. Should I apply?
YES!  Tax laws, regulations, and your circumstances change from year to year. Marriage, deaths, children, change of employment, are some of the life changes that will affect your eligibility as well.  Not qualifying in the past does not automatically mean that you will not qualify this year.
I think I may qualify for EITC for last year but did not apply. What should I do?
If you filed your taxes from a previous year, but didn’t claim the EITC, you can file an amended return and receive the EITC refund for the previous year if you complete the paperwork in a timely manner. If you didn’t receive the refund because you didn’t file, or because you weren’t aware you could claim a child that was living with you, you must file a separate return for each year in which you qualified. You can generally only file an amended return for the past three years. Use Form 1040X, Amended U.S. Individual Income Tax Return to file an amended return.
Where can I go to get more information on the EITC?
It is good to ask your tax preparer or a professional, but it is always wise to gather information for yourself.   The IRS website has reliable information on the EITC here (https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit) and has an EITC Assistant that will walk you through the process to see if you are eligible.

Finally, we at NeighborWorks Umpqua would be happy to help direct you to direct services in your county.  Contact Katelyn at volunteers@nwumpqua.org or 541-673-4909.