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State tax credits left unclaimed

Thousands of low-income Floridians haven't applied for the Earned Income Tax Credit, officials say.

By HELEN HUNTLEY
Published January 28, 2005

Low-income Floridians are missing out on millions of dollars in tax credits, Chief Financial Officer Tom Gallagher said Thursday, joining a campaign to promote the Earned Income Tax Credit.

Last year, 1.5-million Florida taxpayers got income tax refunds of $2.7-billion as a result of the credit. Gallagher said as many as 350,000 more are eligible and leaving up to $635-million unclaimed.

"Our goal in promoting awareness of the tax credit and the resources available is to get money back in the hands of hardworking taxpayers so that they can take advantage of Florida's unlimited opportunity," Gallagher said.

For families with eligible children, the credit can be substantial. The maximum benefit is $2,600 for a family with one child and $4,300 for one with two or more. In addition, some childless workers are eligible for a benefit of up to $390.

"It allowed us the American Dream," Julio Escobar said Thursday at a news conference Gallagher called in Tallahassee. After reading about EITC in a magazine, the Honduran immigrant asked his tax preparer to review his returns. The result: $8,500 for three years' worth of credits from the IRS. Taxpayers can file amended returns to claim refunds for up to three years after filing.

Escobar, 40, who was a lawyer in Honduras and now works as a legal assistant in Miami, said the money changed his family's life. They paid off debt, bought more reliable transportation and made a down payment on a home.

"It made me so happy to have a home for my family," he said.

However, you have to file an income tax return to claim the money, which is where the public awareness campaign comes in.

Nonprofit groups, corporations and government agencies around the state are backing efforts to get the word out to families who might qualify.

The income limits for a single person to qualify are $34,458 for families with two or more children, $30,338 for families with one child and $11,490 for families with no children. The income limits are increased by $1,000 for married couples filing jointly. You must have income from working and investment income is limited to $2,650. Social Security numbers are required for the taxpayer and each dependent claimed and you generally must be a U.S. citizen or resident immigrant. Those who don't have children must be at least 25 years old but not older than 64.

In Pinellas and Hillsborough counties, the campaign is operating under the umbrella of the United Way of Tampa Bay, which in turn is affiliated with a statewide "Prosperity Campaign." Last year, 157,967 returns in the two counties claimed the credit, netting $277.7-million.

In addition to creating awareness, the groups are directing people to dozens of sites where they can get free help preparing their tax returns through volunteer programs such as VITA, AARP's Tax-Aide and Benefit Bank. Some of the sites also offer financial education on topics such as opening a bank account.

For information about claiming the credit, call (813) 234-1234 in Hillsborough; (727) 562-1542 in Pinellas; and elsewhere, toll-free 1-800-829-1040 or 1-888-227-7669.

Information about the credit is available on the Internet at www.irs.gov/eitc and www.prosperitycampaign.com

Times staff writer Joni James contributed to this report.

[Last modified January 29, 2005, 16:42:15]