Earned Income Tax Credit (EITC)

Earned Income Tax Credit is a refundable credit for low-income taxpayers who work.

The EITC amounts to a sizeable bit of money that is often used to pay down debt or for other necessities, but it can provide an opportunity to begin asset-building activities, such as opening or contributing to a savings account. The asset-building potential that becomes available with the EITC affords a real and tangible step toward financial independence for working individuals and families, therefore making it an important project for TAFI.

To qualify for the EITC, taxpayers must work full or part time and have earned income of at least $1. The amount of the credit depends on income and family size. Additionally, taxpayers must meet certain requirements and file a tax return even if they did not earn enough money to be required to file a tax return.

Tax Year 2009 EITC Eligibility Requirements:  

TAFI leverages the impact of EITC in three ways:

• Education and promotion of the economic benefits of EITC.
• Endorsement and support of free tax preparation sites; education about predatory lending practices and the costly fees associated with "rapid refund" loans or Refund Anticipation Loans (RALS).
• Promotion of and education about financial literacy opportunities in our communities and statewide.