Dept. of Workforce Development: Wisconsin Departments Issue Reminders about Income Tax Credits
For Immediate Release:
Contact: Rose Lynch, 608-266-6753
Credits Available For Low Income Wage Earners
Department of Workforce Development (DWD) Secretary Roberta Gassman and Department of Revenue (DOR) Secretary Michael Morgan want to ensure that Wisconsin's low-income tax filers are aware of the state and federal Earned Income Tax Credits and the Wisconsin Homestead Credit. The Wisconsin Earned Income Tax Credit can be worth up to $1,807 with an additional $4,204 in federal EITC and Wisconsin's Homestead Credit can be worth up to $1,160 to low-income wage earners. "We have joined forces with the Department of Revenue to create a greater awareness for low-income working families that these credits are available," said Secretary Gassman. "This is money that should be going to families that need it."
Individuals who were paid less than $34,692 in 2003 may claim the state and federal EITC; and those paid less than $24,500 may also claim the Homestead Credit in addition to the EITC. DOR Secretary Michael Morgan underscored the importance of making low income workers are aware of the tax credits, “Only about 25% of workers eligible for these credits actually apply. These tax credits can add up to as much as $6,000 for some families, which can mean a great deal to families with limited incomes.”
Both state departments have teamed up with the Internal Revenue Service to reach as many eligible workers in the state as possible. The IRS has provided informational posters about the credits to Wisconsin’s 78 Job Centers; DOR has sent promotional flyers about the credits to Wisconsin’s W-2 participants; and DWD is including information about the tax credits with unemployment insurance checks along with information on where to find local Voluntary Income Tax Assistance (VITA) locations. The VITA program, sponsored by the IRS, offers free tax preparation assistance and free tax filing. Information about VITA may be found at http://www.dor.state.wi.us/faqs/vita.html. To locate the nearest VITA location, visit: http://www.dor.state.wi.us/faqs/vita-co.pdf . All of these credits are refundable, which means even families that earned too little to owe income tax can get the credits and many of Wisconsin's low-income working families will qualify for some or all of these credits. Filers may also be able to claim credits retroactively if they had failed to claim the credits on previous tax returns.
For more information about these credits, contact DWD’s Jodi Owens of the Employment Connections Section in the Division of Workforce Solutions 608-264-8165 or Jodi.Owens@dwd.state.wi.us.