Federal Earned Income Tax Credit: 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 $59 billion to lower income workers in 2010 and helped lift more working families out of poverty than any other federal program.
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Federal EITC: Seven Points to Remember
- The tax credit is an opportunity to serve low-income families and communities everywhere and reduces the tax burden on your constituents.
- The Internal Revenue Service (IRS) estimates that 20 percent of eligible workers do not claim the tax credit.
- The credit is based on income and the number of children per household. Families with one child and an income of less than $36,052 (or $41,132 if married filing jointly) can receive up to $3,094. Families with three or more children and an income of less than $43,998 ($49,078 if married filing jointly) can receive up to $5,751.
- Workers without qualifying children may be eligible as well.
- Regardless of tax liability, a return must be filed in order to receive the EITC as a refund.
- Free tax preparation services can significantly increase the number of eligible workers who claim the credit.
- Twenty-five state EITC programs offer additional benefits; however, program eligibility requirements vary.
Federal EITC: What State Legislators Can Do
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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 www.tax-coalition.org)
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Include information in emails, letters and on your website, and publicize the credit through your social media networks.
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Talk about EITC at town hall meetings or other events.
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Visit a free tax preparation program and invite constituents and reporters. Low- to moderate-income workers, the elderly, and members of the military and their families are eligible for free tax assistance. To find a site near you, call the IRS at (800) 906-9887.
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Involve local businesses in EITC outreach.
For More Information:
Rochelle Finzel
National Conference of State Legislatures
7700 East First Place
Denver, CO 80230
(303) 364-7700
Sheri Steisel and Emily Wengrovius
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.
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