Helping families get off the financial tightrope and overcome basic subsistence needs
The Earned Income Tax Credit (EITC) is a refundable tax credit that supplements wages and has the potential to increase the annual income of a low- to moderate wage worker by as much as 25 percent.
If your family earns less than $49,000 a year, you could qualify for the Earned Income Tax Credit. If you qualify, you'll receive help preparing and filing your taxes for free. Call 2-1-1 today for and see if you qualify for the money you don't have...but should.
Information about EITC and free tax assistance sites are available through FIRSTLINK's 2-1-1- telephone call center; accessible 24 hours a day, seven days a week.
WHERE DOES THE MONEY GO?
For some families, it seems that no matter how hard they work, they can’t get ahead. This is especially true for lower income families. The Earned Income Tax Credit (EITC) enables families earning less than $49,000 annually to receive federal tax refunds or credits — enough to help an uninsured family pay for health insurance, or a worker who needs transportation to make a down payment on a car.
The EITC is our country’s largest and most powerful anti-poverty program, helping lift nearly 5 million people above the poverty line each year. But some eligible families do not apply for this credit – either because they don’t know the program exists or they can’t afford the high fees or interest charged by tax preparers; or maybe English is their second language and they can’t navigate the system.
In order to help families get off the financial tightrope and overcome basic subsistence needs, United Way of Central Ohio is part of the Franklin County EITC Coalition which works collaboratively to maximize community resources that promote economic self-sufficiency. The coalition raises awareness of the EITC, provides access to free, high-quality tax assistance and connects people to a framework of services, including financial education opportunities that help them plan for their future.
THE NEED IN OUR COMMUNITY
- The Internal Revenue Service estimates that up to 10,000 eligible Franklin County households do not take advantage of the EITC annually.
- Franklin County’s population has increased 2.5 percent since 2000; the number of families living in poverty — below $20,000 for a family of four — has grown at nearly 20 times that rate.
- Nearly 33 percent of central Ohioans live below the self-sufficiency level of $48,000 annual income for a family of four.
- Annually, of the 83,000 households in Franklin County that received the EITC, 54,000 pay high tax preparation fees or high interest to get their money back.
CONNECTING FAMILIES TO CRITICAL RESOURCES
United Way of Central Ohio maximizes community resources to assist low-income families needing financial guidance. We work collaboratively with more than 30 different community partners to organize and coordinate efforts of the public, private and non-profit sectors.
In October 2006, United Way of Central Ohio helped launch the Franklin County EITC Coalition to offer a network of support services such as free tax preparation and financial education workshops at many sites throughout Franklin County. These services help low- to moderate-income workers begin to build and protect their assets and become financially independent. the path to economic stabilit y
In 2008, the Franklin County EITC Coalition processed over 3,100 returns – a 74 percent increase over the previous year’s total, helping Franklin County residents get more than $2.8 million in returns and save almost $800,000 in tax preparation and loan fees.
