Many nonprofits are being solicited by groups offering to file for the Earned Income Credit (ERC), charging a fee of just 10% for their assistance. While some of these companies may be reputable, you must be cautious as we have learned that some will incorrectly file for the maximum credit.

The problem shows up later if the agency learns they did not qualify for all or most of the credit. The inflated 10% fee has already been paid and the group that processed the application is no longer. So the advice is to be sure to go with a reputable, known local firm, many that also charge just 10% but collect AFTER you get the credit approved.