Tax Credits

With the recession pushing more Americans into poverty, it’s critical that taxpayers learn about and obtain all the tax credits that they’re entitled to. Online resources such as www.LawHelp.org, a national legal information portal, offer a variety of free tools and information for those grappling with tax preparation.

Resources accessible from LawHelp.org include easy-to-understand information about both state and federal taxes, including fact sheets for those facing a variety of special circumstances; information about rebates and tax credits; links to sites offering free tax filing; referrals to organizations that offer free or low-cost help; information on avoiding tax scams; and more.  LawHelp.org is a project of Pro Bono Net, a nonprofit leader in increasing access to justice for the disadvantaged.

Among other tax topics, LawHelp offers information about the earned income tax credit (EITC), which offers benefits to millions of low-income, working Americans. According to the IRS, an estimated 20 to 25 percent of those eligible for EITC are unaware of it and therefore don’t receive the benefits they’re entitled to. The IRS has information about EITC at www.irs.gov.

Another useful tax resource is I-CAN! E-File, a free electronic filing system.  I-CAN! E-File, which was developed by the Legal Aid Society of Orange County, can be used to file federal returns as well as state tax returns in California, Michigan, Montana, New York and Pennsylvania.  More information can be found at www.icanefile.org.

For taxpayers 60 and older who need assistance, AARP runs a free tax-preparation service staffed by volunteers.  More information is available at www.aarp.org/money/taxaide.