Did you know that workers eligible for EITC, Earned Income Tax Credit, can receive up to $5,891 by claiming the credit on their 2012 Federal tax returns? Think of the financial boost EITC provides working people and the impact that influx of cash brings to your local economy.
What’s amazing is there are potentially eligible people who miss this credit because they don’t file a Federal tax return! Based on analysis conducted by the Center on Budget & Policy Priorities, as many as 122,000 Arkansans are eligible for the EITC but do not claim the credit. That means roughly $200 million in tax refunds missed by Arkansans each year.
We need to work hard to reach the members of your community who are eligible for EITC but don’t file because their income is below the filing requirement and for those new to EITC each year. We find that there’s about a one-third turnover each year as people move into or out of EITC eligibility.
Workers at risk for overlooking this important credit include those:
• Whose earnings declined or whose marital or parental status changed
• With limited English skills
• Living in rural areas
• Who are Native Americans
• Who have disabilities or are raising children with disabilities
• Without children
• With earnings below the filing requirement
• Living in non-traditional homes, such as a grandparent raising a grandchild
Are you eligible for Earned Income Tax Assistance? Or do you know someone who is eligible. EITC lifts over 6 million people out of poverty each year, half are children. Log on to unitedwaynwa.org to check your eligibility. You may be surprised!
-Holly Hill, VP of Community Impact