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Higher EITC limits among changes this tax season

Thursday, February 14, 2013

The 2013 tax season is officially open, and there are some changes for taxpayers to be aware of as they file their returns.

Higher income limits and credits for the Earned Income Tax Credit (EITC): Filers who meet all other eligibility criteria and whose income and adjusted gross income (AGI) are both below the following limits may be eligible for the EITC—a tax credit that could result in a refund check even if you don’t have any tax liability for 2012:

• Single filer, no children: $13,980. Joint filers, no children: $19,190.
• Single parent, one child: $36,920. Joint filers, one child: $42,130.
• Single parent, two children: $41,952. Joint filers, two children: $47,162.
• Single parent, three or more children: $45,060. Joint filers, three or more children: $50,270.

The maximum credits for parents are $3,169, $5,236 and $5,891, depending on the number of qualifying children. The maximum credit for filers without children is $475.
For more information about qualifying for the EITC, read Consumer Action’s brochure, Get Credit for Your Hard Work.

New process for obtaining an Individual Taxpayer Identification Number (ITIN): ITINs are issued to people who want to file a tax return but do not have a Social Security number. Under new rules that went into effect Jan. 1, the IRS will only accept original identification documents, such as passports and birth certificates, or certified copies from the issuing agency. New ITINs will be valid for five years. Learn more at the IRS website.

Expanded free tax help: A redesigned website makes it even easier to find key forms and information at IRS.gov. Taxpayers who make $57,000 or less can choose from 15 free, brand-name tax preparation software packages offered through the IRS Free File program. And this year, the IRS is doubling the number of sites where taxpayers can get assistance through two-way video conferencing. Check the list to find out if any of the 27 locations is near you.

Greater protection against refund fraud and identity theft: In an effort to stop identity theft and refund fraud, the IRS is using stronger screening filters this year for incoming tax returns. The agency also wants you to know that it does not initiate contact with taxpayers by email, text message or social media to request personal or financial information. Learn how to recognize a “phishing” attempt (a bogus message trying to obtain your personal, sensitive information) and what to do about it in the identity theft area of the IRS website.