What is the Earned Income Tax Credit?
The EITC is a refundable tax credit that benefits working people of low to moderate income, particularly those with children.
How much is the credit worth?
In 2016, for example, an individual filing head of household status who has three children living with them and makes $24,000 in income would receive a refundable tax credit of $5,040. Likewise, a married couple filing jointly who has three children living with them and makes $23,000 in income would receive a refundable tax credit of $6,269.
The EITC has the ability to reduce the taxpayer’s tax liability to zero and produce a refund.
How do families benefit?
These additional funds can help families stay in their home, buy food, secure transportation, pay utilities, or even save for the future!
What is needed to ensure success of this initiative?
To support growth in the number of individuals taking advantage of the EITC, we must:
- Increase capacity for free tax preparation services
- Launch a marketing, media and informational campaign to make Detroiters aware of the EITC and how to maximize their refund.
- Vigorously recruit and train volunteers beginning in November 2016 to get geared up for the increased demand starting in January through April 2017