Promote the Earned Income Credit And Child Tax Credit. Domestic Violence Advocates Webinar, 2/9/2012 Presentation by: John Wancheck Organization: Center on Budget and Policy Priorities Phone: 202-408-1080 Email: [email protected]
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Offset income and payroll taxes
Provide a work incentive
Reduces taxes workers may owe
Even if workers don’t owe taxes, they may be eligible
Some families can claim both creditsWhat are the Earned Income Credit (EIC) and the Child Tax Credit (CTC)?
Rent & Utilities
The credits help workers keep working and care for themselves and their children.
EIC Eligible Workers
20 - 25% Do Not
75 – 80% Claim EIC
Impact of the EIC and CTC individuals
The Earned Income Credit (EIC) Boosts Workers’ Income
The EIC & CTC Lift More than 9 Million Above the Poverty Line
For Tax Year 2011:
The Federal EIC in Tax Year 2011 individuals
Workers who earned individualsmore than $3,000 in 2011 can get a CTC refund.How Much Can Workers Earn and Qualify for the CTC?
The CTC is worth up to $1,000 for each qualifying child.
Wages, salaries, and tips
Net earnings from self-employment
Union strike benefits
Employer-paid disability benefits
Military combat pay
Non-taxable earned income
Payroll deductions for dependent care or retirement plans
Social security, SSI, welfare
Other income, such as:
Alimony and child support
Interest on bank accountsWhat Counts as Earned Income?
How do the Credits Work? individuals
Maxine is a single mom raising a 6-year old son.
How is this possible?
EIC $ 2,725
Return of income taxes withheld $ 310
Additional CTC+ $ 690
Total Tax Benefit $ 3,725
EIC Rule: Married Couples Must File Jointly
The High Cost of Commercial individualsTax Preparation
Refund Anticipation Loans = Higher Fees
Volunteer Income Tax Assistance (VITA)
Other Important Preparation?
Reaching Out to Preparation?
Promote the Creditsand VITA
The National EITC Partnership website:
1. Spreadsheet with coalition members,
chairperson to contact
2. Goals and activities of coalition
More at National EITC Partner’s website: