The CP09 is one of the few IRS notices that might put money in your pocket. The IRS reviewed your return and determined you may be eligible for the Earned Income Tax Credit that you didn't claim. They're sending you a worksheet to complete and return. If you qualify, the IRS will adjust your return and send you the additional refund.
Why the IRS Sends This Notice
The EITC is the largest anti-poverty program administered through the tax code. Millions of eligible taxpayers don't claim it because they don't know it exists, they don't think they qualify, or they assume they have to itemize deductions to get it. The IRS identifies potential EITC-eligible taxpayers whose returns show qualifying income levels and sends the CP09 to encourage them to claim the credit.
How Much Is the Credit Worth
The EITC varies based on your income, filing status, and number of qualifying children. For a family with three or more qualifying children, the credit can exceed $7,000. Even taxpayers without qualifying children may qualify for a smaller credit. The credit is fully refundable, meaning it can increase your refund or create a refund even if you owe no tax.
What to Do
Complete the worksheet included with the CP09. It walks you through the eligibility requirements: income limits, filing status, qualifying children (if any), and age requirements. If you determine you qualify, sign the worksheet and return it to the IRS at the address on the notice.
If you qualify, the IRS will adjust your return and issue the additional refund, usually within 6 to 8 weeks of receiving your completed worksheet.
Don't Throw This Away
People throw away CP09 notices because they assume anything from the IRS is bad news. This one isn't. It's the IRS telling you that you may have left hundreds or thousands of dollars on the table. Take 15 minutes to complete the worksheet. The potential return on that time investment is significant.
If you're unsure whether you qualify for EITC, call us at (813) 229-7100. We can review your situation quickly.