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Pay Lower Taxes (Earned Income)

photograph from Money story

(before 2003)

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When you work, you do not always get what you earn. If you get paid for working, sometimes you will have to pay taxes. The money collected helps pay for a number of different things.

If you do not earn very much money, there is a way to get some of the tax money back. It is called the Earned Income Tax Credit. It helps people who do not earn much money to pay much less in taxes each year.

Many poor people do not know about this credit. They end up paying a lot more in taxes. But many of them do not fill out and send in a tax return form. You must do this if you want to get the tax credit.

There are people who are trying to teach others about this tax credit. One person is paying for announcements. These announcements explain how to get the tax credit. Many Latino families do not know about this. Very few of them have received this credit.

Most people who do not owe large amounts of taxes usually do not send in a tax return form. The only way to get the tax credit is to return this form. The money that pays for this credit comes from other taxes that are collected.

(This was adapted from an original story provided by News10 KXTV Sacramento.)

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