Tax

Earned Income Tax Credit (EITC)

Often referred to as one of the most successful federal anti-poverty programs ever developed, the Earned Income Tax Credit (EITC) is a federal tax benefit for low to moderate-income working families. Since the credit’s inception in 1975, the EITC has grown to become one of the United States' largest programs to support low-income families.  After meeting the EITC eligibility requirements, workers who qualify for the EITC and file a federal income tax return can receive a refund.

Additionally, more than twenty states have enacted a state EITC based on the federal tax credit. State advocates have been successful at creating or enhancing state EITC programs, initiating campaigns that raise awareness of the EITC, provide tax assistance to eligible families, and leveraging the EITC into savings and asset building opportunities.

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VITA (Volunteer Income Tax Preparation)

Hundreds of volunteer income tax assistance sites (VITA) across the country run by nonprofits and community organizations provide volunteer income tax assistance to low and moderate income tax filers.  Offering free tax preparation services to EITC-eligible residents not only helps ensure that working families actually claim the credit, but it also helps families to avoid high interest refund anticipation loans (RALs) offered by commercial tax preparers.

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