Tax tips for Milwaukee residents
Tax filing season is in full swing, and it is important for Milwaukee residents to take advantage of every tax credit and deduction that is available to them. Two important but often underused tax credits are the Earned Income Tax Credit (EITC) and the Homestead Tax Credit.
The EITC is available for both state and federal tax filings, and can help supplement the income of low- to moderate-income individuals and families. When EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit. The maximum federal credit amount for tax year 2012 is $5,891; the average EITC claimed last year was around $2,200.
Last year, around 383,000 families in Wisconsin received approximately $790 million in EITC, with an average amount of $2,062. In Milwaukee County alone, some 92,000 families received approximately $230 million in EITC, with an average amount of $2,483.
The Homestead Credit is a tool to deliver property tax relief to low- and moderate-income homeowners and renters in Wisconsin. A credit of up to $1,168 is available to qualifying individuals and families who earn less than $24,680 per year.
Tax preparation assistance is available. Please go to http://www.cr-sdc.org/DefaultFilePile/Programs/Flyers/VITAMABCTaxPrepflyer_2013_English1.pdf for more information.
IMPORTANT NOTE: If you are filing an amended return to claim an additional refund, wait until you have received your original refund (you may cash that check). (For more information about filing an amended return, go to www.irs.gov/taxtopics/tc308.html)
The City of Milwaukee is encouraging residents to keep these credits in mind when filing tax returns. Please contact the Internal Revenue Service (www.irs.gov), the Wisconsin Department of Revenue (www.revenue.wi.gov), or your local tax professional for additional information.