News for Hoosiers

Lugar encourages Hoosiers to claim Earned Income Tax Credit
Again this year, Senator Lugar joined the Internal Revenue Service (IRS) in encouraging Hoosiers to determine if they are eligible for the Earned Income Tax Credit (EITC).

Nationally, the IRS estimates that between 20 and 25 percent of qualified Americans do not claim the EITC. In Indiana, the IRS estimates that 15 percent or more of qualifying Hoosiers do not apply for the EITC.

In addition, taxpayers who qualify can retroactively claim an additional three years of the EITC, as long as they file their taxes before April 17. This is money that hard working Hoosiers already have earned and can save or put back into the economy.

According to the IRS, more than 429,000 Hoosiers claimed the federal EITC in 2005 for refunds totaling $782 million. This increase of 2.8 percent from 2004 included an additional 11,800 Hoosiers who received $53 million in refunds.

Enacted by Congress in 1975, the EITC is a refundable tax credit available to families with a working member where the family income falls below a certain level. The EITC was designed to decrease the tax burden and supplement wages, as well as provide incentive to work. When the EITC exceeds the amount of taxes owed, it results in a tax credit for those taxpayers who qualify and claim the credit.

To qualify for the EITC, taxpayers must file a tax return, even if they are not required based on income, and meet ONE of the following income qualifications for 2006:

• Have two or more children with earned income less than $36,348 if single or $38,348 if married and filing jointly;
• Have one child with earned income less than $32,001 if single or $34,00 if married and filing jointly;
• Have no children with earned income less than $12,120 if single or $14,120 if married and filing jointly.

In addition to meeting one of the income qualifications, taxpayers must meet ALL of the following requirements:

• Must file a tax return;
• Must have earned income;
• Must be between 25 and 65 years of age or have a qualifying child;
• Cannot be claimed as a dependent by any one else;
• Must have a valid Social Security number;
• Must be a U.S. citizen or a legal permanent resident;
• Must have lived in the U.S. for at least six months;
• Cannot file as married filing separately;
• Cannot file Form 2555 or Form 2555-EZ;
• Investment income cannot exceed $2,800.

New split refund option

This year, individuals have more options and flexibility to choose how to receive 2006 federal income tax refunds. Refunds can be direct deposited into one account or split among two or three checking or savings accounts with U.S. financial institutions no matter which 1040 form is filed (except Form 1040EZ-T, Claim for Refund of Federal Excise Tax).

Form 8888, the Direct Deposit of Refund to More Than One Account form, enables the option of splitting the refund when attached to your tax return. Please double check the account and routing numbers and verify that your financial institution will accept direct deposits to your account.

For assistance in determining eligibility, taxpayers may use the EITC Assistant, a new web-based tool, available at http://www.irs.gov. By providing basic information, this program will assist taxpayers with filing status, determining eligibility and estimating the amount of credit you may receive. In addition, the IRS has Volunteer Income Tax Assistance (VITA) centers available throughout the state to provide free assistance with tax preparation. For a center located near you, call Senator Lugar’s Indianapolis office at (317) 226-5555. Taxpayers may request a free copy of Publication 596 Earned Income Credit by calling the IRS at 1-800-829-3676.

U.S. Senate Passes Resolution to Congratulate the Colts on their Super Bowl Win

Following Super Bowl XLI in Miami, Floriday, the U.S. Senate passed by unanimous consent Senate Resolution 75 introduced by Senators Lugar and Evan Bayh to congratulate the Indianapolis Colts on their victory.

"Like so many of my fellow Hoosiers, I have enjoyed cheering on the Colts since the Irsay family brought them to Indianapolis almost a quarter of a century ago. Over the years Colts Owner and CEO Jim Irsay and President Bill Polian have brought together a remarkable group of dedicated professionals such as Tony Dungy and players who through their hard work and dedication to community service are a credit to the Colts organization, the City of Indianapolis and the State of Indiana," Senator Lugar said.

"Special recognition should be given to Tony Dungy as the first head coach of African American descent to lead his team to victory in the Super Bowl. I have enjoyed following Coach Dungy's remarkable leadership and appreciate the example he sets for all Hoosiers," Senator Lugar continued.

The full text of the resolution follows:

Congratulating the Indianapolis Colts on their victory in Super Bowl XLI

Whereas on Sunday, February 4, 2007, the Indianapolis Colts defeated the Chicago Bears by a score of 29-17 to win Super Bowl XLI;

Whereas Colts owner and chief executive officer Jim Irsay and the Irsay family have worked to build the Colts organization not only into a championship caliber team, but also a group dedicated to service in communities across the State of Indiana;

Whereas Tony Dungy is the first head coach of African-American descent to lead a team to victory in the Super Bowl;

Whereas Peyton Manning, having thrown for 247 yards and made 1 touchdown, was named the game's Most Valuable Player;

Whereas the Colts' defense and special teams were able to force 5 turnovers and to limit the Bears to 17 points;

Whereas Colts President Bill Polian, widely considered the "architect" of much of the Colts' recent success, and the Colts management have assembled a group of players and coaches that has worked together to win 4 straight championships in the Southern Division of the American Football Conference;

Whereas the Colts' regular season record of 12-4 marks the team's fourth straight year with at least twelve wins, and makes the Colts only the second team to achieve such consistent success in the history of the National Football League;

Whereas the Colts are committed to community leadership, working to help those in Indiana communities who are disadvantaged and underserved, through the generosity of the Irsay family and player groups such as the Peyback Foundation and D.R.E.A.M. Alive, Inc.;

Whereas tens of thousands of fans braved bitterly cold temperatures to line the streets of Indianapolis, Indiana for a victory parade and the rally that followed in the RCA Dome; and

Whereas Hoosiers from across Indiana and the Nation have rallied together to cheer the Colts not just for winning, but for winning the right way, with dignity and professionalism: Now, therefore, be it

Resolved, That the Senate congratulates the Indianapolis Colts on their victory in Super Bowl XLI.