The Earned Income Tax Credit (EITC) is an anti-poverty initiative administered by the Internal Revenue Service (IRS). Created in 1975, the EITC is one of the largest governmental programs designed to help low income working taxpayers operate above the poverty level while encouraging them to work. This year, on Friday, January 25, 2019, the IRS observes its 13th annual EITC Awareness Day. EITC Awareness Day represents a national effort spearheaded by the IRS to educate taxpayers and the greater community about this refundable credit. “We [the IRS] want to generate extensive news media coverage on this specific day (or days in close proximity) to increase awareness among potentially eligible taxpayers at the time most are filing or getting ready to file their federal income tax returns. The IRS joins partners nationwide to launch the Awareness Day outreach campaign to ensure millions of workers get the credits they earned and deserve.[1]” The Philip C. Cook Low-Income Taxpayer Clinic at Georgia State University College of Law joins the IRS in their efforts to educate taxpayers about this valuable credit. The Clinic also works with taxpayers who are entitled to the credit navigate the IRS examination and U.S. Tax Court processes to secure the funds they so desperately need. In order to qualify for the credit, taxpayers must be earning income as a self-employed business owner or an employee. In addition, the higher credit amounts go to taxpayers who have one or more qualifying children. This underscores the credit’s objective of lifting children out of poverty. A taxpayer has a qualifying child when they share a close biological or legal relationship with a child who lives with him or her for more than half of that particular tax year. “In 2017, more than 25.8 million eligible taxpayers received $63.8 billion in EITCs. The average amount received was about $2,470. The maximum amount in 2018 [was] $6,444 for taxpayers filing jointly with three or more qualifying children, and $3,468 with one qualifying child.[2]” Taxpayers also received more than $63 billion in EITCs in 2018[3]. By receiving this in the form of a tax refund at the beginning of the year, taxpayers are able to pay bills, as well as purchase school supplies, clothes and other essentials for their children.
For additional information about how to qualify for the EITC refer to IRS Publication 596. If you have a federal income tax issue that involves the EITC, contact the Philip C. Cook Low-Income Taxpayer Clinic for assistance at (404) 413-9230.
[1] https://www.eitc.irsgov/partner-toolkit/eitc-awareness-day/eitc-awareness-day-2
[2] https://www.occ.gov/news-issuances/news-releases/2018/nr-occ-2018-7.html
[3] http://www.ncsl.org/blog/2018/12/27/irs-raising-awareness-of-federal-and-state-eitc-enactments.aspx