Last year more than 27 million eligible workers and families received more than $67 billion with the Earned Income Tax Credit (EITC). However, every year the IRS estimates that one out of five qualified taxpayers are leaving money on the table by not using the credit. On January 27, also known as EITC Awareness Day, those who qualify can receive help to keep that money in their pocket.
Currently, the amount refunded with EITC depends on a number of factors including income, marital status and children in the household. EITC can increase a worker’s tax refund up to more than $6,000 – making a significant difference in the lives of low- and moderate-income individuals and families, and to the economic stability of their communities overall. In addition to the federal tax credit, 25 states plus New York City and Washington, DC have established their own EITCs to supplement the federal credit, and in 2016, more than 170 EITC-related bills were considered in state legislatures to create, expand and promote tax credit for workers and their families. Even at the federal level many Republicans and Democrats in Congress support EITC expansion.
While the IRS continues its work to increase participation of eligible taxpayers in the program, in the coming congress, we will be advocating along with partner organizations and people like you to raise or expand the EITC benefit for low- and moderate income young adults, non-custodial parents, and veterans. This program has already lifted millions of people out of poverty, and its expansion is key to helping more Americans become self-sufficient, permanently.
You work hard, so see if EITC can work just as hard for you. Whether or not you qualify now, follow Goodwill Industries International’s advocacy team to stay informed of efforts to expand the EITC to workers who need it, and improve economic security for millions of young people, parents, veterans and others to encourage and reward work.
