VOP Newsfeed3/16/10 [VOP] Community Organizer questions Tea Party tactics, respects Tea Party activists
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Great New Books on Organizing:
by John Wancheck
Benefits as high as $3,756 per family — the Earned Income Credit (EIC) is a federal tax benefit for people who work. To be eligible, parents must work at some time in 1998 and have a child living with them for more than half the year. Single or married parents raising one child, with income less than $26,473 in 1998, can receive an EIC of up to $2,271. Parents raising two or more children with income less than $30,095 in 1998 can receive up to $3,756.
Also, singles or couples not raising children are eligible for a modest credit of up to $341. To qualify, workers must have been between 25 and 64 years old by the end of 1998, with income of less than $10,030.
The EIC offsets payroll taxes for lower-income families, and can supplement the income of workers whose wages still leave them below the federal poverty line. For example, a couple with two children earning $15,000 in 1998 is over $1,000 below the poverty line, and will also pay about $1,150 in payroll taxes. But their EIC will be worth nearly $3,200.
The average family with children that claims the EIC will receive about $1,800. In 1997, over 434,000 Virginia families and individuals claimed the EIC, for more than $627 million.
What's more, families do not need to worry that receiving the EIC will affect their eligibility for cash assistance ("welfare"), food stamps, SSI, Medicaid or federal housing assistance. The EIC is not counted as income to determine eligibility for these programs, and isn't immediately counted as a resource.
Getting the credit isn't hard but does require filing a federal tax return, even for workers earning too little to owe income tax. Those raising children must file either form 1040 or 1040A (they can't use the 1040EZ to claim the EIC) and one additional form, called Schedule EIC. Workers without children can file any tax form, including the 1040EZ, and do not need to file Schedule EIC.
Despite its value, several million eligible families don't claim their EIC. Many don't know about it. Others don't know how to file for it, and don't know that free tax assistance is available.
It is easy to promote the EIC to your clients, employees, customers, parishioners, colleagues or constituents. Request a free EIC information kit from the Center on Budget and Policy Priorities. The kit contains posters and flyers in English and Spanish, fact sheets and a guide on how to run an EIC promotional campaign. For your free copy of the EIC kit, write or call the EIC Campaign, Center on Budget and Policy Priorities, 820 First Street, NE, Suite 510, Washington, DC 20002, 202-408-1080, Fax 202-408-1056. Be sure to include your name, organization, address and telephone number.
The Virginia General Assembly came closer than ever last session to passing a state Earned Income Credit, which would help relieve the burden of the state income tax on low-income families and reduce poverty among working families. A state EIC is an important part of welfare reform efforts, since it boosts the income of workers who move from welfare to entry-level, low-wage jobs. The Virginia Coalition for the Homeless has led the battle for this legislation, which also was a priority of Campaign for Virginians in Need in 1998.
Contact Sue Capers at (703) 739-9365 or e-mail sbcapers@ ix.netcom. com for more background on the state Earned Income Credit legislation.
Charlottesville, VA 22903-5208
Phone: (434) 984-4655 Fax: (434) 984-2803
