The Earned Income Tax Credit (EITC) sometimes called the Earned Income Credit (EIC), is a refundable Federal income tax credit for low-income working individuals and families.

Congress originally approved the tax credit legislation in 1975 in part to offset the burden of social security taxes and to provide an incentive to work. When the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.

For some families, the benefits of EITC can result in the payment of debt, the purchase of a car, or new clothes for their children.  Last year, Success By 6, in collaboration with The United Way of Greater Oswego County, SUNY Oswego, RSVP, Child Care Council, Department of Social Services, Oswego County Schools and the IRS, adopted this project and had great success. Our campaign consisted of  mass educational marketing and free tax preparation sites. Flyers were sent home with all students in grades K-3 throughout the county in addition to letters sent to families through Department of Social Services, media coverage and other organizations. 

As a result, we were pleased to report to the community (for the 2004 tax season):

 

*    30% increase in the number of EITC claims filed by families and individuals - that is a total of over 2700 new claims

*    Over $30,000 new tax return dollars claimed through EITC going to families in Oswego County

 

To qualify, taxpayers must meet certain requirements and file a tax return, even if they did not earn enough money to be obligated to file a tax return.

The EITC has no effect on certain welfare benefits. In most cases, EITC payments will not be used to determine eligibility for Medicaid, Supplemental.

 

Success By 6 is seeking new collaborations to further leverage this campaign. Getting money into the hands of those that need it most is just the beginning. We are looking to take the next step by offering money management and financial education resources.

 

For more information on EITC, or to find out if you qualify visit: wwww.irs.gov