WASHINGTON DC -Ways and Means Committee Chairman Charles B. Rangel (D-NY) and Oversight Subcommittee Chairman John Lewis (D-GA) are urging taxpayers to take advantage of the Earned Income Tax Credit (EITC). The EITC continues to be one of America’s most powerful anti-poverty and work support programs. Each year, the credit helps approximately 24 million working families make ends meet, lifting nearly five million out of poverty. However, an estimated five to seven million eligible taxpayers nationwide do not claim benefits they are entitled to through the EITC.
“Not only does the EITC put real money into the pockets of working families, this money goes back into our communities, helping our local businesses thrive and create jobs," said Chairman Rangel. “Because of the current economic conditions, it is more important than ever that we encourage the millions of hardworking taxpayers to take advantage of free tax preparation sites and resources, including those provided by the IRS, to make sure they receive the benefits they deserve."
“The best part of EITC," said Rep. John Lewis, “is that people do not have to wait to receive a financial boost. Up to $5600 is available to them right now, if they are eligible. And it can have a powerful impact on their families. One man saved his EITC refund for several years and used it to make a downpayment on a home. That’s what strategic use of EITC can do and why we want to be sure Americans are aware of this opportunity."
In an effort to help struggling families during this economic downturn, the
American Recovery and Reinvestment Act of 2009 temporarily increased the EITC and expanded it for three or more children and increased the amount of EITC benefits current beneficiaries receive, making over 650,000 new families and 1.3 million children eligible. Currently, families making up to $48,000 may qualify for the credit, which may be worth more than $5,600. Because of the Recovery Act’s temporary EITC expansion and current economic conditions, it is likely that there are taxpayers who may be eligible for the EITC for the first time.
