Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, January 31, 1995 TAG: 9501310147
SECTION: VIRGINIA PAGE: C-3 EDITION: METRO
SOURCE: BRIAN KELLEY STAFF WRITER
DATELINE: CHRISTIANSBURG LENGTH: Medium
The Abingdon Democrat made his second annual pitch Monday for the earned-income tax credit - passed in 1993 - while en route to Washington, D.C.
Boucher expects some type of new tax cut to pass this session of Congress. He said he's keeping an open mind on which proposal he will support. For now, he wants more Southwest Virginians to use the earned-income tax credit.
``It's designed to say, `If you're working, you shouldn't be in poverty,''' Boucher said. ``It's to reward work.''
More than 95,000 families and 22,000 individuals in Southwest Virginia qualified for the credit last year, but only 25 percent of them used it, returning $10 million to the region, Boucher said. His vast 9th District, which excludes Roanoke and Salem but covers the rest of Southwest Virginia, had more people eligible for the credit last year than any other part of the state.
The earned-income credit is a ``refundable'' credit, meaning low-income working families who qualify can receive a check from the government even if they owe no federal income tax. If they've paid the tax and the credit is greater, then applying for the credit will bring a check for the difference.
Based on family size, the earned-income credit can result in up to a $2,500 tax break for a couple or single parent with more than one child and an income of less than $25,296. Families with one child at home and less than $23,755 in earnings can receive a credit of as much as $2,038. Individuals and childless couples with an income of less than $9,000 may receive a credit of $306.
Unlike many of the tax-cut proposals that will come up before Congress this year, the earned-income credit is not automatic. Taxpayers need to file a form, called a ``Schedule EIC,'' along with the usual Form 1040 or Form 1040A tax return by the April 15 deadline. Those applying for the credit cannot use a Form 1040EZ.
Adults can claim a son, daughter, stepchild, grandchild or adopted child if the child lived with them for more than six months of the year. A niece, nephew or a foster child who lived with the family for all of last year also qualifies, Boucher said. In all cases, the child must be either under 19 or a full-time student under age 24. A totally disabled child of any age also will qualify.
People who believe they qualify for the credit can get advice and a form by calling the Internal Revenue Service at (800) 829-1040. Boucher said his offices in Pulaski (980-4310), Abingdon (628-1145) and Big Stone Gap (523-5450) also have information on the credit.
by CNB