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Earned Income Tax Credit
Millions
of Unclaimed Dollars Could Go to Philadelphia Families: PHILADELPHIA, January 21, 2004- Tax season '04 began with the launch of a citywide campaign to bring millions of dollars to low-income working families through the federal Earned Income Tax Credit (EITC). Leaders from The Campaign for Working Families and an EITC tax filer spoke today at an event that announced the Campaign's 19 free tax sites and a 24-hour telephone information line. The kick-off event was held at Congreso de Latinos Unidos, one of the Campaign's 19 free tax filing sites. EITC is a tax benefit for working people who earn low and moderate incomes (less than $35,000 a year). EITC refunds can be up to $4,200 per year, based on family size and income. The Campaign for Working Families is a partnership that promotes free filing of the EITC and connects Philadelphia residents to other tax credits, public benefits and asset-building resources. The Campaign boosts the number of people who receive free tax filing assistance and do not have to pay sky-high fees to commercial tax preparers. Similar EITC campaigns are underway in 23 cities across the nation. In 2003, the Campaign brought in more than $10 million in federal tax credits directly to Philadelphia families. The preparation of tax returns by 325 Campaign volunteers also resulted in a savings of $1.5 million for low income working families, who did not have to pay commercial tax preparers an average of $165.00 per tax return. The locations of the Campaign's free tax preparation, information on EITC eligibility and other information is available on the web site www.gpuac.org or by calling the Campaign's 24-hour information line at 215-686-2599 . The Campaign's 19 free tax filing sites opened in neighborhoods throughout Philadelphia the week of January 19. Elizabeth Crespo, a single mother of five, will receive $2,000 in EITC this tax season. She talked about how, one year ago, the EITC enabled her to buy her own home. "Now my mortgage is much less than the rent I used to pay." Added her daughter Maria, age 11: "Now I have my own space and a big backyard." Sharmain Matlock-Turner, president, Greater Philadelphia Urban Affairs Coalition, whose organization manages The Campaign for Working Families, said the EITC "is money that should be going to low-income families, but isn't. $84 million is being left on the table in Philadelphia, in unclaimed EITC. And low-income families are losing out on even more money through commercial tax preparers' so-called Rapid Refund Loans, which take advantage of the working poor by charging excessively to borrow off tax refunds and credits. That's why our slogan is 'Take All the Money. You Earned It!'" Over the last 28 years, the EITC has reduced the annual tax burden for low-income working families and emerged as America's largest and most effective anti-poverty program. In 2000, the EITC provided roughly the same level of federal assistance to low-income families nationwide as the TANF and food stamp programs combined, according to a study released in January 2003 by the Brookings Institution. About 50,000 eligible households in Philadelphia do not file EITC claims, leaving at least $84 million in unclaimed credits. More than 41 percent of those who do file for EITC use commercial tax preparers to obtain Refund Anticipation Loans (RALs). The interest paid on these loans can be as high as 800 percent - to provide cash only a few days before refunds would have arrived. The Campaign for Working Families is managed by the Greater Philadelphia Urban Affairs Coalition. It works with a partnership that includes: Ceiba, City of Philadelphia: Free Library and Mayor's Office of Consumer Affairs, the Internal Revenue Service, PathWays PA, Philadelphia Citizens for Children and Youth, Philadelphia Council AFL-CIO, The Reinvestment Fund, Transitional Work Corporation, and the United Way of Southeastern Pennsylvania. Supporters of the Campaign include: The Pew Charitable Trusts, The Annie E. Casey Foundation, the Pennsylvania Department of Public Welfare, the Philadelphia Office of Housing and Community Development, AmeriCorps/VISTA, John S. and James L. Knight Foundation, The Philadelphia Foundation, the Samuel S. Fels Fund, the City of Philadelphia, Verizon and Fleet Credit Card Services. #### For more information about the Campaign for Working Families click here. For information on how to volunteer click here. For more information about the National Tax Assistance for Working Families Campaign go to www.eitc.com .
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