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Published: January 08, 2009 01:38 pm    print this story   comment on this story  

Are you eligible — 01/09109

Governor encourages more to apply for federal tax credit

The federal earned income tax credit is nothing new, but Gov. Steve Beshear has launched a campaign urging low- and middle-income Kentuckians to apply for the federal tax benefit. While thousands of Kentuckians have been taking advantage of the federal tax break for years, there is a perception that many who could receive the tax break do not apply for it because they do not think they are eligible.

The Beshear administration has a Web site — www.assistance.ky.gov — that is designed to help Kentuckians receive the tax breaks for which they are eligible. For example, many middle-income families do not realize that they may qualify for a federal earned income tax credit and, because of that, do not apply for it. But — depending on the size of their family — workers who earn up to $41,000 may be eligible for credits as high as $4,824, the governor said.

Kentucky has a vested interest in assuring that every Kentucky resident receives all the federal tax benefits for which he or she is eligible. Each benefit claimed will increase the amount of refund they receive from Uncle Sam, and the higher their refund, the more they are likely to spend in retail shops in the state. That, in turn, will generate more sales tax revenue for a state government that needs more revenue to balance its budget. Much like the federal stimulus money taxpayers received in 2007 was intended to do, tax refunds can boost the economy in the state.

Also available on www.assistance.ky.gov are a list of places where Kentuckians can receive free assistance from volunteers in filling out their state and federal tax forms. There is at least one location in every area county except Elliott.

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