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(Neb.)-Officials Urge Use of Income Tax Credit

By: Chad Franzen Posted at: 02/06/2010 10:55 AM

OMAHA, Neb. (AP) - The Nebraska Department of Health and Human Services is reminding Nebraskans to claim all the tax credits they've earned through the Earned Income Tax Credit program.

The earned income tax credit is a refundable credit for people who work, but don't earn a big salary. A "refundable credit" means that it counts toward a refund, unlike many deductions.

Taxpayers who qualify and claim the credit could pay less federal tax, pay no tax or even get a tax refund beyond the amount of tax withheld.

Childless, unmarried adults making less than $13,440 a year are eligible, as are married couples with two children making less than $45,295 a year.

The Nebraska agency works with community organizations to provide free tax preparation assistance to low income individuals and families.

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