West Amwell residents could have unclaimed tax credit

By: Concetta Benuzzi Volpe
   WEST AMWELL — Millions of dollars of earned income tax credit payments to New Jersey’s low-income taxpayers has gone unclaimed.
   It is quite possible township residents qualify for a portion of those unclaimed funds but are not aware of it.
   Apparently, the state has been holding $168,536 in unclaimed earned income tax credits earmarked for West Amwell residents since 2000, and it has no definitive way of determining to whom the funds belong.
   The unclaimed funds may be available to residents who did not file income tax returns because their income level fell below the minimum-filing requirements or the funds may generate a tax refund for those who have not had to pay tax.
   The average eligible wage earner receives approximately $1,730 in combined federal and state EITC benefits.
   Certain West Amwell residents may be eligible for a portion of those funds but residents must file federal and state income tax returns to qualify.
   According to Township Clerk Betty Jane Hunt, the situation is extremely complex and has yet to be unraveled.
   But Feb. 5, Township Committee member Nance Palladino informed the committee she plans to take the necessary steps to resolve the issue.
   "I plan to coordinate an effort between the county aging office and our local legislator in order to expedite identifying local individuals," she said. "We want to make sure the money gets to the people who need it."
   Mayor Peter Buchsbaum suggested press coverage in The Beacon might launch a public awareness campaign to ensure those eligible take advantage of the tax benefit. With tax season right around the corner, township officials are suggesting all eligible individuals and families apply for the New Jersey earned income tax credit.
   The credit is a $700 million resource to help combat poverty in the state and is accessible to qualified residents who work, earn an income and have no tax liability to the state. It is a refundable tax credit program adopted in 2000 to supplement the wages of low-income families and individuals by offsetting their income tax liability.
   If the credit amount exceeds the amount of income tax owed, the eligible taxpayer will receive a lump sum payment for the difference.
   In order to become eligible, a claimant must file a federal and state income tax return even if income from 2002 fell below the federal and state required filing minimum.
   The claimant also must be eligible for federal earned income tax credit; claim the federal EITC by filing Federal Schedule EIC on which at least one "qualifying child" is listed; claim filing status as either married filing joint return, head of household or qualifying as widow or widower claiming the same filing status on federal return; and have a gross income of $20,000 or less.
   The program began in 2000 and is being phased in over a four-year period. For tax year 2002, the credit will be equal to 17.5 percent of the applicant’s federal earned income credit.
   For example, if your federal EITC is $3,000, the amount of your NJIETC will be $525.
   According to the Internal Revenue Service, the federal EITC applies to those who worked full or part time in 2002 and are raising one child on a family income less than $29,201; raising two or more children on a family income less than $33,178; or are between the ages of 25 and 65, not raising children and earning less than $11,060.
   To learn more, call the Taxpayer Customer Service Center at (609) 292-6400 or New Jersey Earned Income Tax Credit Hotline at (888) 895-9179 or contact the New Jersey State Department of Taxation with questions via e-mail at [email protected].
   For further information regarding the federal earned income tax credit and criteria for filing federal income tax returns, contact the Internal Revenue Service at (800) 829-3676 or (800) 829-1040 or visit www.irs.gov.