Corporate Voices for Working Families released our 2008 EITC Toolkit yesterday. You can download a copy at the publications and toolkits section of our Web site. The EITC Toolkit is designed to help employers make sure that employees take advantage of all of the tax and other benefits that they have earned.
Here’s a good explanation of the Earned Income Tax Credit — from the Battle Creek Enquirer online. Here’s from the article:
The federal EITC was developed in the 1970s to help offset the burden of Social Security taxes as well as provide an incentive to work. This year, income guidelines to receive the EITC have increased, ranging from a single person with no children and an income of less than $12,800 up to a married couple filing jointly with more than one child and earning up to $41,646.
The maximum amount of EITC you can receive is $4,800 – which can go a long way toward buying needed items, paying bills or reducing debt.
The problem is, thousands of people who qualify don’t claim the credit. According to the Michigan Association of United Ways, last year an estimated $150 million in EITC funds went unclaimed in the state. Not only can that money help individuals and families, but it also can boost local economies as it is spent in area businesses and helps to sustain jobs.
In 2006, approximately 22 million American workers received a total of $43.7 billion in EITC money.
In making the announcement about our EITC Toolkit, Donna Klein, President and Founder of Corporte Voices, said: “Employees earn these benefits but many do not know how to take advantage of them because of the complexity of the programs and paperwork involved. The information in this reference guide helps employers inform employees and shows them how to keep more of what they earn. And by helping employees claim tax credits and federal benefits, companies build trust by making employees aware of valuable resources.”
And here’s a link to some more information about the Earned Income Tax Credit provided by the Internal Revenue Service.