November 01, 1989
It's Not Too Late to Claim
the Earned Income Credit
A notice is going out to working families alerting them that it's not too late to file a tax return to claim the Earned Income Credit (EIC) for 1988, or even for 1987 and 1986.
EIC is a tax benefit designed to help working families. To get the credit, you must have earned income such as wages, salaries or tips, of less than $18,576 for 1988 and have a child living with you for more than half the year (the entire year if you file as qualifying widow(er) or the child is a foster child). You are not
eligible for the credit if you file as single or married filing separately.
The notice also explains a change in the way EIC affects Aid to Families with Dependent Children (AFDC) and Medicaid benefits, says the Internal Revenue Service. As of Oct. 1, 1989, the credit no
longer counts as income when AFDC and Medicaid benefits are figured. This means that starting in October, AFDC and Medicaid benefits are not likely to be affected if you receive EIC.
The notice is being distributed through local independent organizations, many of which are working with local governments to get the notice out as a stuffer with AFDC, Medicaid and through local programs which are available to help low-income families.
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