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MUSC employees may qualify for earned income tax credit by Cindy Abole Public Relations MUSC employees who do not earn high incomes can join other eligible working Americans and keep more of what they earn by benefitting from the IRS’ Earned Income Tax Credit (EITC) or Earned Income Credit (EIC).      Approved as a tax credit legislation in 1975, the EITC is a refundable federal income tax credit for working individuals and families who earn low to moderate incomes.   Qualified workers who claim the credit, could pay less federal tax, pay no tax or receive a refund beyond taxes withheld. Eligibility is based primarily on earned income and adjusted gross income. MUSC employees may contact University Human Resources to verify if they qualify.   Employees can file one of two ways: they can file at the same time they file their annual income tax and are eligible to receive an EITC lump sum, or they can apply for Advanced Earned Income Tax Credit (AEITC) through their employer and receive a higher take home pay throughout the year. Employees who believe they may be eligible for the AEITC should submit a W-5 through the human resources office so a determination of eligibility can be made. The maximum AEITC an employer is allowed to provide through payroll deduction for tax year 2006 is $1,648.   “AEITC can be a nice benefit and makes a real difference for an individual or family’s living expenses including rent, food or other necessities,” said Holly Maben, University Human Resources Benefits and Retirement coordinator. “It’s a good break for working employees.”   For tax year 2006, EITC qualifiers may receive IRS maximum tax credits between $412 to $4,536. Additionally, investment income cannot exceed $2,800 for the year.   The endeavor is an extension of Charleston Mayor Joseph P. Riley’s effort to inform Charleston area businesses and employees about EITC basics and benefits, while encouraging qualified individuals and families to register and participate.       In addition, any Charleston resident whose gross income is under $37,500 per year can receive free tax assistance through a program sponsored by the Trident Urban League.   “As Charleston area’s largest employer (about 9,000 employees), it's important that we inform our employees about the advantages of EITC,” said Stewart Mixon, chief operating officer for MUSC’s Division of Finance and Administration. “There’s been some confusion in the past concerning EITC and who can qualify. Only employees who meet EITC criteria will receive the credit. It truly is a credit and a help to certain employees.”      University Human Resources plan to coordinate EITC Information Sessions for employees in the coming months. Speakers will include representatives with the IRS and/or Trident Urban League.   For information about filing, university employees can contact Hope McKiernan, HR Payroll Management, 792-4937. Questions about taxes, call Wendy Littlejohn, HR Controller’s Office, 792-9138. For information about EITC, visit http://www.irs.gov/individuals/article/0,,id=96406,00.html. EITC requirements: Must have a valid Social Security number You must have earned income from employment or from self-employment Your filing status cannot be married, filing separately You must be a U.S. citizen You cannot be a qualifying child of another person If you do not have a qualifying child, you must: be age 25 but under 65 at the end of the year; live in the United States for more than half the year, and not qualify as a dependent of another person Cannot file Form 2555 or 2555-EZ (related to foreign earn income) EITC Thresholds and Limitations Special rules may apply Source: Internal Revenue Service     Friday, Feb. 24, 2006 Catalyst Online is published weekly, updated as needed and improved from time to time by the MUSC Office of Public Relations for the faculty, employees and students of the Medical University of South Carolina. Catalyst Online editor, Kim Draughn, can be reached at 792-4107 or by email, catalyst@musc.edu. Editorial copy can be submitted to Catalyst Online and to The Catalyst in print by fax, 792-6723, or by email to catalyst@musc.edu. To place an ad in The Catalyst hardcopy, call Island papers at 849-1778, ext. 201.