What is the Earned Income Tax Credit: The federal Earned Income Tax Credit (EITC) is credited with bringing more children out of poverty each year than any other federal program. The EITC not only reduces the tax burden on low-income workers, but it also supplements wages, and assists people in making the crucial transition from welfare to work. Created by Congress in 1975, the federal Earned Income Tax Credit, or EITC, provides a lump-sum cash refund to low-wage working individuals and families.
The EITC is the largest federal income subsidy program targeting the working poor. Through the EITC, in 2003, the IRS administered over $36 billion in tax refunds to low-wage workers. These refunds are re-invested into local communities as workers use the funds to make ends meet, invest in home ownership, education, small business, or other important assets that can change their lives. What distinguishes the EITC from other federal income support programs is that eligibility is based on a pre-requisite of employment, making work pay for workers in entry-level positions.
The EITC is the largest federal income subsidy program targeting the working poor. Through the EITC, in 2003, the IRS administered over $36 billion in tax refunds to low-wage workers. These refunds are re-invested into local communities as workers use the funds to make ends meet, invest in home ownership, education, small business, or other important assets that can change their lives. What distinguishes the EITC from other federal income support programs is that eligibility is based on a pre-requisite of employment, making work pay for workers in entry-level positions.
Free Tax Preparation
As part of the Delaware EITC Campaign, First State will offer free tax preparation for eligible households with incomes at or below $50,000 for those with dependents and $25,000 for those without. There are 3 sites located in Sussex County and 1 in Kent County. Each site will be staffed by trained, friendly volunteer tax preparers that will help you claim the Earned Income Tax Credit, Child Tax Credit, and other credits and deductions. Each site is managed by a tax professional to answer volunteer questions, ensure quality, and manage overall site operations.What to bring:
- W2s, 1099s (interest, dividends, etc)
- Social Security Card(s)
- Copy of last year's tax return
- List of other income/expenses
- Childcare information
- Blank check or savings account information for Direct Deposit
