1/24/2011

Is there a Tax Credit for you?

Check out http://www.taxcreditsforworkingfamilies.org/ for information about tax credits for working families. Click Virginia on the State Resource Map.
Tax credits directly reduce taxes owed, dollar for dollar. Tax deductions reduce taxable income and will indirectly reduce taxes owed, but not dollar for dollar. In short, a $100 tax credit is worth more than a $100 tax deduction.
Some tax credits are refundable while others are non-refundable tax credits. Refundable tax credits are refunded to the tax payer even if credit exceeds the tax liability. A good example is the Earned Income Tax Credit (EITC).  Click here for details about income qualifications.
The 2011 EITC Awareness Day is February 28! Stop by the Norfolk Workforce Redevelopment Center at 201 E. Little Creek Rd in Norfolk on Friday, February 28th 9AM- 2PM.
This is the kickoff event for free tax prep.  There will be a team of tax preparers ready to prepare taxes.  Many other vendors will be available to give information including VEC, an IRS tax advocate, and some of the Virginia Saves financial partners. Also, Virginia Saves will have a table at the event. A change wrapper machine will be at the table and can be used to turn change into bank deposits!  

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