Federal Earned Income Tax Credit: What Legislators Need to Know  To view this brochure, please click here. (printer-friendly version. To read portable document format (.pdf) files, you must install Adobe Acrobat Reader.) Federal EITC: What Legislators Need to Know The long-standing federal Earned Income Tax Credit (EITC) puts cash into the hands of working poor families. Nationally, the federal EITC delivered $39 billion to lower income workers in 2004 and helped lift more working families out of poverty than any other federal program. Legislators who want to build economically stronger families can help get the word out to their constituents. Points to Remember - President Ronald Reagan called the Earned Income Tax Credit (EITC) “the best anti-poverty, the best pro-family, the best job creation measure to come out of Congress.”
- EITC is an opportunity to serve low-income families and communities everywhere and reduces the tax burden on your constituents.
- EITC is not being claimed by all qualified tax payers.
- Families with one child and a family income of less than $31,030 can receive up to $2,662; families with more than one child and a family income of less than $35,263 can receive up to $4,400*.
- EITC tax refunds benefit your local and state economy.
- Using free tax preparation services can significantly increase the number of individuals who are eligible for EITC.
- Hurricane victims with reduced annual incomes in 2005 may elect to compute their EITC using their annual income from 2004 - resulting in a larger tax refund.
- Regardless of tax liability, a return must be filed in order to receive the EITC as a refund.
- Nineteen state-level EITC programs offer additional benefits; however, program eligibility requirements vary.
* EITC varies based upon income and the number of children per household. Federal EITC: What State Legislators Can Do to Help Outreach Efforts - Connect with your state or local EITC outreach campaign. Many neighborhoods, cities or states already have campaigns—or create your own.
(To locate a campaign near you, visit http://www.tax-coalition.org/buildcoal.htm.) - Include outreach materials in legislative newsletters and on Web sites.
- Talk about EITC at town hall meetings or other constituent events.
- Send e-mails or letters to constituents about EITC.
- Make a site visit to your free tax preparation program and invite constituents and reporters. To find a site near you, call the IRS at 1-800-829-0922.
- Involve local businesses in EITC outreach.
EITC Resources For more information contact: Christine Nelson National Conference of State Legislatures 7700 East First Place Denver, CO 80230 303-364-7700 Lee Posey National Conference of State Legislatures 444 North Capitol Street, N.W., Suite 515 Washington, D.C. 20001 202-624-5400 This brochure is a special project of the Women’s Legislative Network of NCSL made possible by funding from the Annie E. Casey Foundation. |