EARNED INCOME TAX CREDIT:
Helping Families Build Financial
Enterprise Community Partners Inc.
10227 Wincopin Circle, Columbia MD 21044
Enterprise Community Partners
EITC Brief – September, 2008
EITC: Helping Families Build Financial Assets
Enterprise Community Partners is pleased to share this compilation of
information on the value of the Earned Income Tax Credit (EITC) for very low-
income working families and individuals. The EITC was established in 1975 to
help offset the payroll taxes paid by working families and to encourage parents to
work. If they qualify, they pay less federal tax or pay no tax at all. In some cases,
eligible taxpayers receive a refund beyond the amount of tax withheld.
Research supported by the Annie E. Casey Foundation has shown that the EITC
is responsible for lifting more children out of poverty than all other government
supports. The EITC, which can provide as much $4,824 annually for a family of
four, can help families save money, pay for work supports such as child care and
transportation, increase personal assets by accessing higher education or job
training, as well as provide funds for a homeownership.
Each year, hundreds of thousands of eligible families do not take advantage of
the EITC funds, Child Care Tax Credits, and Additional Child Tax Credits to
which they are entitled. And hundreds of thousands of others, together, waste
billions of dollars on tax preparers when volunteers trained by the IRS could help
them free of charge.
The summary information provided in this EITC brief can guide housing owners
and resident services staff in family affordable rental housing to the resources
they need to share with housing residents and to partner with local EITC
campaigns to bring tax preparation volunteers onsite to ensure that everyone in
your properties and community can access the most significant tax credi