Tax credit means money back for HB residents

By Steven Gnagni
Managing Editor

Tax day is just a couple of weeks away, and many Highbridge residents are eligible to receive a federal tax credit that will reduce their taxes or possibly earn them a refund. However, many don’t know about the credit, which can be up to $5,279 this year. As a result, local tax preparers and nonprofit organizations are trying to get the word out to Highbridge residents.

The push to get the word out about the Earned Income Tax Credit (EITC) arose because 276,000 people in New York City who were eligible for the credit did not claim it last year, says Barbara Robinson, financial officer at Highbridge Community Life Center and a tax professional.

The reason: “A lot of people don’t know they’re eligible, especially if they work a few months a year or make less than $5,000,” Ms. Robinson said.

According to the Community Food Resource Center (CFRC), if all eligible recipients claimed the tax credit, $500 million would be added to New York City’s economy each year.

And, of course, the credit, in effect, adds to the recipient’s income. The recipient may receive the money at the end of the year, or it can be paid in advance, over the course of a year.

“It’s money in their pocket,” said Ms. Robinson. “In each paycheck, they can get percentage of the earned income credit. It’s a good way to get additional income into a paycheck.”

Here are the requirements to be eligible for the credit:

No child: Income of $11,060 or less (or $12,060 or less, if married filing jointly).

One child: Income of $29,201 or less (or $30,201 or less, if married filing jointly).

Two or more children: Income of $33,178 or less (or $34,178 or less, if married filing jointly).

Ms. Robinson, who attended a workshop about the EITC at the United Way, mentioned that at the same time the credit is beneficial, there is a potential for fraud. That’s because the credit is much higher for those with children.

“All you need is the social security number of a child and the birth date, so a lot of people will buy other kids,” she said. “But if you get caught, then for 10 years you can’t claim it [the EITC]. And I’ve had a client who had to pay the money back that he got. They threatened to put him in jail if he didn’t pay.”

Another thing to be aware of: If a person has outstanding student loans or child support payments, the credit will be applied directly to that debt by the government. But on the other hand, it may be a way for many to reduce that debt.

To get more information or help in claiming the credit, potential recipients can call or visit one of the free tax filing centers the IRS helped set up. Here is a list of others in the Highbridge vicinity, according to the New York City Department of Consumer Affairs:

Highbridge Advisory Council Senior Center, 1181 Nelson Avenue, (718) 588-3004 Hostos Community College, 500 Grand Concourse, Building C/Z-590, 5th floor, (718) 518-4444

Concourse Village SPEC. Adult Program, 773 Concourse Village (at 158th Street), (718) 293-6552

Another free tax filing center is run by CFRC, which has a toll-free information line—(866) 924-3758 in English, (866) 365-2737 in Spanish. The organization has also opened six free tax preparation sites. The Bronx site is at the 1199 SEIU Training Center, located at 2501 Grand Concourse, at the corner of Fordham Road (in the former Alexander’s Department Store). The entrance is at Creston Avenue.