Up to $115 a month: Vega urges low and moderate-income families to apply for refund from federal governmentSal Vega, Chairman of the Hudson County Board of Freeholders, is conducting a campaign to bring to the attention of all residents of Hudson County an obscure tax credit program for which 15 million Americans qualify, but rarely take advantage of. “No doubt many of these people are residing in Hudson County,” says Vega, “and residents who earn less than $30,580 a year and have at least one dependent, can qualify for up to $115 per month from the federal government.” According to Vega the program is titled “Advanced Earned Income Credit” and part of a larger and more well known program called “Earned Income Credit.” Under this program, low and moderate-income taxpayers are eligible to receive a refund of up to $1,412 a year in advance, spread out in their weekly paychecks. There is an estimated $10 billion sitting in the federal treasury waiting for eligible people to claim it. “It’s easy to apply,” says Vega, “and all the recipients have to do is fill out a simple four-question form, IRS Form W-5 and file it with their employer. If you have one dependent, for example, you can make up to $26,928 and still get a weekly refund. If you have two or more dependents, you can make up to $30,580 and still qualify. The higher your income, the smaller your refund.” He cites two examples. A single or married person with one child who earns $1,200 a month ($18,000 a year) would get an extra $104 per month in his or her paycheck, while someone who earns $1,800 monthly ($27,000 a year) would get an extra $46 a month. The employer simply adds the money to your weekly paycheck and then deducts it from the overall payroll tax remittances to the government. Vega urges persons who think they qualify should contact their local IRS for a copy of the W-5 form and easy-to-understand instructions on how to fill it out. If eligible, then they file the form with their employer and begin collecting in advance of their estimated earnings for the year. “This is like getting a raise in your paycheck,” said Vega, “and an extra $50 or $100 a month could make a large difference to many families.”
Our Digital Archive from 2000 – 2016
