We're current in the middle of one of the worst economic times in over 70 years. And many families are finding it hard to survive. Many are a paycheck away from poverty and are in desperate need of help. Some of them are suffering needlessly, however, as there is a little known government program that could help many of them if they knew of its existence. It's called the Earned Income Tax Credit or EITC and is overseen by the federal government. The EITC program is one of the United State's primary anti-poverty programs, even though most people know nothing about it. It was originally created in the mid seventies to help struggling families cope. but now, each year, millions of available dollars in the program go unclaimed, even though thousands of families would qualify for the program if they only knew of it's existence. According to the IRS, many families could increase their net income by a third simply by taking advantage of this program. The Earned Income Tax Credit is a refundable federal income tax credit for low and moderate income working families. It was created primarily to cut down the amount of taxes paid by the working poor in an attempt to assist them towards moving to income self-sufficiency. If a family qualifies, they could be eligible for a tax reduction in addition to supplemental dollars. The main criteria for qualifying is that the family's income must be "earned", hence the name of the program. You must be employed by a company and earn wages. In other words, if your income is based primarily on interest from investments, stock dividends, and so on, you probably do not qualify. Your qualification is also based on how many dependents you support. But, since the rules periodically change, it's best to check with a tax professional to determine if you currently qualify. Alternatively, their are websites that you can go to that contain calculators you can use to determine if you qualify for the Earned Income Tax Credit and, if so, how much. There are additional rules as well. In fact, one of the main barriers to applying for the EITC is that through the years, the application process has become so byzantine and complex that thousands of families that do know about the program either don't try or give up in frustration after trying a few times. But there are independent organizations out there that will help families to apply for an EITC. One such organization is the United Way. Many of their local offices will provide free tax preparation and access to the Earned Income Tax Credit and other tax credits to help working families increase their incomes and create savings. The program is a win-win for many states as well. By taking advantage of the EITC, families are less likely to become homeless which would push the burden of caring for them to the states. In addition, the EITC helps to provide an economic stimulus to local communities. The Earned Income Tax Credit money that the homeowners receive is almost certain to be spent in the local stores, banks, restaurants, and so forth. The EITC program can potentially be a life saver for many families that are barely surviving week to week. Even if you applied for it a year or two ago and were rejected, its worth trying again. Your circumstances may have drastically changed so that now you are eligible for the program.
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