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MUSC employees may qualify for 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.
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 Management Benefits
Office to determine eligibility.
“AEITC can provide qualified employees with the ability to retain
more income. This income can assist in meeting living expenses such as
rent, food or other necessities,” said Dana Tumbleston, University
Human Resources manager.
For tax year 2007, 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, it’s important that we
inform our employees about the advantages of EITC,” said Stewart Mixon,
chief operations 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.”
A representative from Trident Urban League will be on the MUSC campus
to discuss the Earned Income Tax Credit and who can qualify. Briefings
will be held at 7:30 a.m. and 3:30 p.m., Tuesday, Jan. 30, Room 220,
College of Nursing.
For information about filing, university employees can contact Angela
Alford, Payroll manager, 792-4397. Questions about taxes, call Wendy
Littlejohn, Controller’s Office, 792-9138. For information about EITC,
visit http://www.irs.gov/individuals/article/0,,id=96406,00.html.
EITC
requirements
- You 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
- You cannot file Form 2555 or 2555-EZ (related to foreign
earn income)
- EITC thresholds and limitations apply
Source: Internal Revenue Service
Friday, Jan. 19, 2007
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
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