Facts About The Campaign for Working Families

Connecting families to tax credits, public benefits, and

ways to keep and grow their household incomes.

About Us

Over the past four years, Philadelphia's Campaign for Working Families has brought nearly $66 million directly into the homes of low-income working families.  And saved these families an additional estimated $11.7 million in interest, fees, charges for tax preparation and check cashing, and loans.

Partnership

The Campaign is a partnership that promotes free filing of the federal Earned Income Tax Credit (EITC), PA TAX BACK, and connects Philadelphia residents to other tax credits, public benefits, and ways to keep and grow their household incomes.

What we do

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. The Campaign is part of a national movement to promote EITC, to provide free or low cost tax services, and to protect taxpayers from rip-offs, including Holiday, Pay Stub and Refund Anticipation Loans (RALs), sometime called “Instant Money” or “Rapid” Loans.

Free Tax Sites

During the upcoming 2007 tax season, the Campaign will operate 16 free tax sites located throughout Philadelphia neighborhoods.  These sites open to the public the week of January 17, 2007.  New at the tax sites will be the opportunity for a “split refund” – customers can deposit refunds in two or more accounts, allowing them to Spend Some on expenses, and Save Some for a home or car purchase, education, or any other purpose.

The locations of the Campaign's free tax preparation sites and information on EITC eligibility are available online at www.phillyfreetaxes.org, or available by calling the Campaign's 24-hour information line at 215-686-2599.  This phone line is in Spanish and English.  [The phone line goes live January 8, 2007.]

The Earned Income Tax Credit

EITC is a tax benefit for families and individuals who earned, in 2006, less than $38,348 (have children) or less than $14,120 (no children).  EITC refunds can be up to $4,536 per year, based on family size and income.

For more than 30 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 Philadelphia, an estimated 39,000 eligible households do not file EITC claims, leaving approximately $66.3 million in unclaimed credits.

The Brookings Institution reports that more than 41 percent of Philadelphia EITC filers used commercial tax preparers to obtain RALs. The interest paid on these loans can be as high as 700 percent – to provide cash only a few days before refunds would have arrived (and sometimes no sooner).   According to the National Consumer Law Center Inc. and the Consumer Federation of America, about 12 million people took out RALs in 2004, costing them over $1 billion in fees. 

The Marketplace

The end of 2006 ushers in two new types of RALs, called Holiday and Pay Stub RALs.  These new loans are calculated from pay stubs and are expected to be repaid from a tax filer’s anticipated tax refund.  They are both evil and exploitative, sapping even more money from low-income workers and posing additional consumer risks because they are based on estimated, not actual earnings. 

Philadelphia's Campaign for Working Families results, Year Four (January – April 2006):

• More than $20.5 million went to low and moderate income working families in Philadelphia. This amount includes the Earned Income Tax Credit (EITC), child tax credit, dependent care credit, and PA TAX BACK.
• One hundred percent of the refunds went directly to the tax filers; 90% of returns filed electronically.
• Tax returns were filed for over 12,500 individuals.
• Demographics of tax filers:  75% African American; 12% Latino/Hispanic; 8% Caucasian; 2% Asian/ Pacific Islander.  The median adjusted gross income of filers was $15,202.
• Tax returns were prepared by 447 Campaign volunteers; 228 were returning volunteers.
• Volunteer tax preparers filed EITC for 5,200 people.
• According to the IRS, the Campaign reached 9 million people through its telephone information line, mailings, workshops, the media, and other outreach.

The Campaign for Working Families is a partnership managed by the Greater Philadelphia Urban Affairs Coalition (GPUAC).  Partners are:  Ceiba, City of Philadelphia: Free Library and Mayor's Office of Consumer Affairs, Community Legal Services, Consumer Credit Counseling Services of the Delaware Valley, District 1199c, Greater Philadelphia Coalition Against Hunger, Greater Philadelphia Urban Affairs Coalition, Internal Revenue Service, PathWays PA, Philadelphia Citizens for Children and Youth, Philadelphia Council AFL-CIO, Philadelphia County Assistance Office, Philadelphia Workforce Development Corporation, The Reinvestment Fund, Transitional Work Corporation, and United Way of Southeastern Pennsylvania.

Support for the current Campaign for Working Families' operations and activities comes from:

Pennsylvania - Department of Community and Economic Development and Department of Public Welfare; City of Philadelphia - Office of Housing and Community Development and Department of Human Services; The United Way of Southeastern Pennsylvania; Bank of America; The Philadelphia Foundation; The Reinvestment Fund; The American Heritage Federal Credit Union; and Verizon.  In-kind support provided by Corporation for National Service: NCCC and VISTA, and all sixteen Partner agencies.

Media sponsors are: the Philadelphia Daily News, 6abc, Univision 65 and Clear Channel.

Executive Director:  Jean Hunt

Media contacts: Robin Robinowitz 215-851-1701, rrobinowitz@gpuac.org / Crystal Jacobs 215-851-1887, cjacobs@gpuac.org                                                                                                 

The Campaign for Working Families · 1207 Chestnut Street, 6th Floor · Philadelphia, PA 19107 · 215-851-1745