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March 31, 2009
Earned Income Tax Credit Will Help Thousands in South Jersey to Keep Their JobsOn Monday, March 30, Congressman Andrews addressed the Rutgers Law School Volunteer Income Tax Assistance (VITA) program to highlight the importance of educating employees, businesses and their community partners of the Earned Income Tax Credit and its direct economic benefits. VITA is a group of approximately 75 law students who volunteer to provide Camden residents with free income tax assistance. These students have already assisted nearly 400 individuals this year and they have helped hundreds obtain refunds under the Earned Income Tax Credit. Every year at this time, government and business entities promote the Earned Income Tax Credit (EITC or EIC) as an effort to help millions of Americans keep their jobs. The EITC is a refundable tax credit for low to moderate income working individuals and families. In tax year 2007, the EITC program provided more than $43 billion to over 22 million working Americans, specifically helping those who hold “frontline” jobs in the retail and service industries. Yet, while this tax credit has existed for over 30 years, many working Americans and small businesses are not aware of its existence and often suffer as a result. In today’s difficult economic times, millions of Americans are living paycheck to paycheck, struggling to meet expenses associated with their work such as transportation, job training and childcare costs. While employee turnover is a constant concern for small businesses, the EITC helps millions of Americans afford to keep working by receiving the relief necessary to meet their day-to-day needs. Rather than face the crippling costs of repeated hiring and training, small businesses are able to retain a stable workforce rather than a costly revolving door. Also, businesses are able to put more money towards educating their staff and preserving jobs, which allows many to excel to a better, higher paying position. In fact, studies have shown that nearly five million people are lifted out of poverty each year due to the EITC.In this tax year, claimants with one qualifying child can receive a maximum credit of $2,917, while those with two or more qualifying children are eligible for a maximum credit of $4,824. In short, to qualify for EITC you must meet various criteria. For instance, claimants must have a valid Social Security number and have earned income from employment or self-employment. Eligible individuals, if married, cannot be filing separately. A qualifiers must be a U.S. citizen or resident alien all year, or be married to a U.S. citizen and file jointly with the spouse. Finally, although childless individuals are eligible, they must be between 25 and 65 at the end of 2008. At a time when the American workforce and small businesses are struggling to withstand the current economic downturn, Congressman Andrews continues to support provisions like the U.S. federal Earned Income Tax Credit to help millions of Americans meet their day-to-day needs and keep their jobs at no cost to the business community. ###
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