Earned Income Tax Credit (EITC)

According to the Center on Budget and Policy Priorities (CBPP) Web site, the Federal Earned Income Tax Credit (EITC) is critical to ensuring that low-income working families and individuals maximize their incomes. Such households may not be aware of the EITC or that it can be worth as much as $3,816 to them. Because the credit is refundable, it can even help households who have no income tax obligation. Those previously receiving welfare who have recently moved into employment, immigrant workers, or workers who are or have been homeless are eligible for these funds.

Because of its role in helping working families escape poverty, the EITC has attracted widespread interest and support among administrators of other programs that serve families with children. To obtain information about EITC, go to CBPP at http://www.cbpp.org/research/policy-basics-the-earned-income-tax-credit?fa=view&id=2505 or call 202-408-1080 (ph), 202-408-1056 (fax).