Are You Eligible for the EITC?

posted 1/20/20 -- The Earned Income Tax Credit (EITC), enacted by Congress in 1975, is a refundable tax credit that increases the income of low- and moderate-income working families through the provision of tax reductions and wage supplements.

The program’s primary purpose is to aid employed workers in achieving and maintaining their independence from welfare by making work more attractive.

The EITC has been widely praised for its effectiveness in reducing poverty and has been instrumental in closing the poverty gap for the country’s working poor.

Since low-income families pay little or no Federal income taxes, the refunds received represent increases in income, not reductions in taxes owed, providing a greater level of support.

The EITC is designed to fill a gap between what can be earned in the labor market and what is required to meet household needs.

In 2010, across the country, the EITC lifted about 6.3 million people out of poverty. It is estimated 20% of those eligible do not claim this valuable credit thus creating the need for innovative outreach strategies and Volunteer Income Tax Assistance (VITA) programs.

VITA programs help low-income, working families make their way through the tax code, claiming the full amount of any tax refund for which they are qualified.

Learn more through the Lorain County Free Tax Prep Coalition.