Spread the word about federal, state
Earned Income Tax Credits
Increasing family income is a critical piece of the puzzle for promoting children’s health, well-being and school success. Children who live in families that earn more have better outcomes and have a greater chance of growing into well-educated, productive and healthy adults.
One of the best — and least known— strategies for lifting families out of poverty and putting more money in their wallets and bank accounts is the Earned Income Tax Credit, or EITC, which is designed especially to help lower-wage workers that work hard but still struggle to meet their families’ basic needs.
The result is that eligible working families in North Carolina lose between $100 million and $200 million dollars each year. Given the fact that most EITC dollars are spent locally, the lost stimulus to the state and Durham’s economy is significant.
At a time when many families are struggling due to the country’s economic crisis, and child care and higher education is becoming increasingly expensive, families cannot afford to leave money unclaimed. This money can be used to buy things families need, to pay down debt, for health insurance, or to save for children’s future education.
North Carolina implemented a State EITC in 2008, so families can put even more in their pockets for the first time. Coupled with the Child Tax Credit (CTC), these tax credits are a powerful tool for lifting family income. If you are an employer, promoting these tax credits can be an important factor in helping retain workers since employees may use the credit for job-related expenses such as child care and transportation.
You can help spread the word. There are many opportunities to raise awareness to help eligible working families and individuals claim these important tax benefits. Remember, both parents and staff may be eligible. Here’s how you can help:
- Display an EITC/CTC poster in your child care center, Head Start center, or family day care home.
- Keep EITC/CTC fact sheets and the appropriate tax forms — including Schedule EIC and Form 8812 on hand at the center for interested parents and staff.
- Think about the things that go home with children. Artwork? Lunch menus? Send EITC/CTC materials along.
- Publish an article about the EITC and the CTC in your newsletter. Insert EITC/CTC information in staff paychecks.
- Make the tax credits the featured topic at your next parent meeting or your next staff in-service training.
- Organize a free tax-help day for parents and staff. You can find volunteers to help participants fill out tax forms by contacting the local Volunteer Income Tax Assistance Program (VITA), sponsored by the IRS, a local accounting firm, or a college or university that has an accounting program.
- Think about your business partners, such as companies that provide food, classroom supplies or other items for your program.
- Ask them to help share information about the EITC and the CTC with their other customers and their own employees. Parents and staff can become Tax Credit Ambassadors. They can distribute EITC/CTC information in their own workplaces, at church, or at schools their older children attend.
- Don’t forget about grandparents who are raising children or about foster parents. They may be eligible for the credits, too.
- Make sure they receive EITC/CTC information.
For more information about eligibility for the tax credits, and to find a VITA tax preparation site near you, call the toll-free tax helpline at 1-888-927-3230 or call 2-1-1. You can also visit http://www.eitc-carolinas.org for additional outreach materials, newsletter inserts and EITC/CTC fact sheets that you can download.
The Earned Income Tax Credit and Child Tax Credit can make a real difference in the lives of working families and their children. Help us to put more money in the pockets of hard working Durham families – they’ve earned it!