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The Honolulu Advertiser
Posted on: Thursday, January 31, 2008

Aid to Isle families rises to $142.8M

By Greg Wiles
Advertiser Staff Writer

WANT TAX CREDIT?

The IRS said information about the Earned Income Tax Credit will be available today at two locations on O'ahu. The locations are:

  • WCA/Waipahu Weed & Seed/Empower Oahu, 94-340 Waipahu Depot Road., Waipahu, from 9 a.m. to 5 p.m.

  • Goodwill Industries Beretania (computer lab), 1075 Young St., Honolulu, from 4 p.m. to 7 p.m.

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    Hawai'i taxpayers got $142.8 million last year from one of the federal government's largest cash assistance programs for low-income working families.

    So says the Internal Revenue Service, which yesterday said both the amount of money and number of people applying for the program, the Earned Income Tax Credit, increased last year compared to a year prior.

    The IRS released the numbers yesterday to promote the tax credit, which Congress enacted in 1975 to help working families. It is a refundable credit, meaning taxpayers who file a return and qualify for it can get a refund even if they don't owe taxes. Others can use the credit to offset taxes.

    The maximum credit this year is $4,716 for a family with two or more children and $2,853 for a family with one child.

    It's $428 for couples if there are no children.

    The IRS said last year's filings for the 2006 tax year show the number of people receiving the tax credit grew to 82,294.

    That was an increase from the 80,779 local recipients who received $135.3 million a year earlier.

    Nationally it's estimated that about one in four people who are eligible don't file for the credit. A coalition that helps low-income people and senior citizens with tax preparation last year estimated that more than 27,000 residents who could qualify for the credit don't file for it and estimated the average claim paid to Hawai'i residents was $1,632.

    There are a number of criteria to qualify for the credit, including income limits that top out at $39,783.

    The IRS said help is available for people who need it by calling the Aloha United Way hotline at 211, or from the AARP Tax Aide program at 888-227-7669.

    Reach Greg Wiles at gwiles@honoluluadvertiser.com.