Materials for Promoting the EITC
Press Release: Steer Clear of Tax Refund Anticipation Loans
A refund anticipation loan is a risky proposition because it must be repaid even if the taxpayer's refund is denied, less than expected, or frozen. If the taxpayer cannot pay back the RAL, the lender may send the account to a debt collector.
Because the loans are short term, the annualized interest rates are very high. "No one should have to pay interest on their tax refund," said Massachusetts DOR Commissioner Navjeet K. Bal.
Office of Consumer Affairs & Business Regulation Undersecretary Dan Crane advises taxpayers to consider the following alternatives to RALs:
- File your tax return electronically (E-file) with the refund deposited directly into your bank account. Massachusetts taxpayers can now e-file their state income tax returns directly with the DOR using the "WebFile for Income" program. WebFile for Income is free, convenient, secure, and you should receive your refund in less than 10 days. For more information, visit the DOR's web site at www.mass.gov/dor.
- When you do receive your refund, avoid check cashers. They charge fees to cash RAL and tax refund checks. Undersecretary Crane suggests, "If you don't have a bank account, open one so that you can take advantage of direct deposit for your tax refund and your pay check. Many banks reduce or eliminate fees when you have your pay check deposited directly to your account."
A list of banks that participate in the Commonwealth's Basic Banking for Massachusetts program as well as a description of the program's low cost bank account is available at the Basic Banking for Massachusetts web site. - Reduce your income tax withholding so that you won't have to wait for a refund next year.
For free tax preparation, low- to moderate-income tax payers can take part in the Volunteer Income Tax Assistance (VITA) program, which is coordinated by the IRS. VITA sites can be found in libraries, community centers, and other locations during tax season. Most sites offer free electronic filing to expedite the receipt of tax refunds. If you earned $54,000 or less in 2008, you can use the IRS Free File program to prepare your federal income taxes online at IRS Free File.
The AARP Tax-Aide program provides free tax preparation and assistance services to millions of low- and middle-income taxpayers, with special attention to those ages 60 and older. See http://www.aarp.org/money/taxaide for more information. The DOR Circuit Breaker Tax Credit program, available to Massachusetts residents ages 65 or older, may provide a state income tax credit to seniors. Further details are available at www.mass.gov/dor.
EITC Poster 
EITC Poster (Spanish)
Read the text of EITC Poster (below)
EITC Mailer
Read the text of EITC Mailer (below)
What to expect if you filed a tax appeal
Text of the EITC Poster:
If you work for a living, you may be eligible for the Earned Income Tax Credit (EITC) and you could get up to $6,516 cash when you file your 2010 tax returns.
- Find a FREE tax preparer.
Well-trained professional tax volunteers are available to help you prepare and file your federal and state income taxes for FREE!
The tax preparer will help you determine if you quality for the federal Earned Income Tax Credit (EITC). The EITC refund is based on family size and income and could provide your household with a refund of up to $6,516. - File for the Earned Income Tax Credit (EITC).
You qualify if:- You worked and earned income in 2010,
- You have a valid social security number, and
If your family has and you earned less than you can get up to No qualifying children $18,470
$526
One qualifying child $40,545
$3,508
Two or more qualifying children $45,373
$5,791
Three or more qualifying children $48,362
$6,516
Qualifying and credit amounts are based on a married couple jointly filing their federal and state returns. Alimony and child support do not count towards income.
- You worked and earned income in 2010,
Text of the EITC Mailer:
It's your turn for a tax break!
It's as simple as 1...2...3...
Massachusetts Earned Income Tax Credit Campaign
If you work for a living, you may be eligible for the Earned Income Tax Credit (EITC) and you could get up to $6,516 cash when you file your 2010 tax returns.
Find a FREE tax preparer.
Well-trained professional tax volunteers are available to help you prepare and file your federal and state income taxes for FREE!
The tax preparer will help you determine if you quality for the federal Earned Income Tax Credit (EITC). The EITC refund is based on family size and income and could provide your household with a maximum refund of up to $6,516.You are qualified if: You worked and earned income in 2010 and you have a valid social security number and
If your family has and you earned less than you can get up to No qualifying children $18,470
$526
One qualifying child $40,545
$3,508
Two or more qualifying children $45,373
$5,791
Three or more qualifying children $48,362
$6,516
Qualifying and credit amounts are based on a married couple jointly filing their federal and state returns. Alimony and child support do not count towards income.
- Put your EITC to work for you! Pay bills, open a savings account, or buy a U.S. Savings Bond for yourself or as a gift! And remember, you'll get a faster refund if you e-file with direct deposit. Ask your tax preparer for information. Keep your money! Avoid costly advance payment offers that reduce your refund..
This information provided by the Executive Office of Administration and Finance.