By Corrine Dietrich, NENA Director
IL Director, Abilities in Motion
Did you know that 1 in 5 eligible workers for the EITC credit do not claim the credit they earn! The EITC is a tax benefit for working people who earn lower or moderate incomes. The credit offsets taxes, supplements very low wages, and encourages work. Many times, the EITC can help cover any federal income tax owed. Sometimes, workers earning lower wages may also get cash back through the EITC refund. Often, the reason that eligible workers do not take the tax is because they worry the EITC will affect their Medicaid Eligibility and other benefits.
Many times, the reasons that eligible workers do take the tax is because they worry the credit will affect their Medicaid Eligibility and other benefits.
This year, there is a delay in the distribution of refunds that include Earned Income Tax Credit and the Advanced Child Tax Credit. Congress passed the PATH Act in 2015 that allows the IRS to verify income reported on those returns to help prevent identity theft or erroneous refunds. February 15th is the first day these refunds will be released.
For more information about the EITC, go to www.eitcoutreach.org/outreach-kit. Our friends from Virginia Commonwealth University have shared some frequently asked questions, which can be accessed here.