Lifting your employees and the people you serve: the earned income tax creditFebruary 27, 2015
Do you provide services to people or have employees who earned less than $52,427 in tax year 2014? If so, they may qualify for the Earned Income Tax Credit (EITC). It is not too late to learn about the EITC and other resources that benefit your employees, your business and the people you serve. The EITC is a significant antipoverty program and almost 28 million tax filers received more than $66 billion for tax year 2013. Also, according to the Internal Revenue Service, the credit lifted an estimated 6.5 million people out of poverty. Unfortunately, only four of five eligible people claim the credit. This means dollars that could assist a working household and a community are left unclaimed.
Check out the Basic Qualifications, which include having a Social Security number; have earned income and other criteria. Income limits do apply, but overall income for tax year 2014 must be less than $52,427, with three or more qualifying children, which can result in a credit of up to $6,143.
Steps you can take as an employer:
- If you have employees that fall in the EITC income range you might consider promoting the EITC at work;
- If you want to increase retention, reduce turnover and training costs, you might consider establishing a Financial Education in the Workplace program for your employees. Read the benefits study.
- Find financial education resources at FederalReserveEducation.org
- Provide information on Plan.Prepare.Prevail, a financial disaster preparedness suite of products as part of your business continuity program—helping your employees and your business with easy to use form-fillable PDFs and other resources.
Steps like these help your employees, your business and the people you serve.