The Earned Income Tax CreditMarch 16, 2016
Do you know people who earned less than $53,267 in tax year 2015? They may qualify for the Earned Income Tax Credit (EITC). It is not too late to learn about the EITC and other resources to assist your employees, your business and the people you serve. The EITC is a significant antipoverty program through which about 27.5 million filers in tax year 2014 received more than $66 billion—about $2,400 on average nationally. Also, Internal Revenue Service estimates show the credit lifted about 6.5 million people out of poverty. However, only four of five people eligible for the credit claim it, leaving dollars that could assist a working household and a community unclaimed.
Some basic qualifications for the credit, available here, include having a Social Security number and having earned income in 2015. Income qualifications vary depending on the number of dependents. As an example, the 2015 income maximum with three or more qualifying children is $53,167, and can result in a credit of up to $6,242.
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. Find the benefits study at here.
- Find financial education resources at FederalReserveEducation.org.
- Check out Putting Your Paycheck to Work, a suite of resources for employers, employees and educators available here.
- Provide information on P3 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.