Earned Income Tax Credit Awareness Day
Federal tax credits are potent anti-poverty tools, but many fail to take advantage
On Thursday, January 29, the Multnomah County Board of County Commissioners will consider a proclamation, co-sponsored by Commissioners Jeff Cogen and Deborah Kafoury, aimed at increasing local awareness of the Earned Income Tax Credit (EITC).
Last year in Multnomah County, 46,673 individuals and families received over $77.5 million dollars in EITC, but many people eligible for these federal tax credits failed to apply and the money they were due reverted to the federal treasury.
Multnomah County’s Family Economic Security Program, which is run through the county’s Commission on Children, Families and Community (CCFC), helps families and employers learn about ways to increase take home pay and make other smart financial choices.
“Taking advantage of the EITC can provide a vital financial benefit to working families in Multnomah County,” said Commissioner Jeff Cogen. “For many, it can mean the difference in being above or below the poverty line, so raising awareness is a tangible, important step we can take to make people in our community aware of the benefits to which they are entitled.”
“I want to thank the 15 employers who have encouraged employees to sign up for this, including New Seasons Markets, Portland Nursery, Sky Chefs, Oregon Health Sciences University, NE Workforce Center, Lloyd Center Hotel, Benson Hotel, Paramount Hotel, Dress for Success, Heald College, Rebuilding Center, Portland Community College, Peninsula Children’s Center, Housing Authority of Portland, and Mt. Hood Community College,” said Commissioner Kafoury. “I hope that other employers, especially in these tough times, see this as a positive way to get involved and help make a difference in peoples’ lives.”
CASH Oregon, a community-based nonprofit organization, provides free tax preparation for working individuals and families in Clackamas, Washington, and Multnomah counties in partnership with AARP Tax-Aide and offers one-on-one personal financial advocacy. The number of EITC claims in Multnomah County generated at these free tax preparation sites increased from $1.6 million in 2006 to over $2.4 million for the 2007 tax year.
According to Kathy Howell, IRS Senior Tax Consultant, “The Internal Revenue Service estimates that 20 to 25 percent of eligible taxpayers fail to claim the credit each year, which could put as much as $4,824 into the pockets of a family with two children, or send as much as $2,917 to a family with one child, or up to $438 for a worker with no children. That means potentially tens millions of dollars could be re-introduced into the local economy each year through the EITC alone.”
After the proclamation is considered, a short reception will take place celebrating the volunteers who help working individuals and families access these important tax credit programs. Guest speakers will include representatives from IRS, CASH Oregon, ACORN, and United Way of the Columbia-Willamette.
Posted on January 28, 2009
follow Jeff on Twitter
Comments
(Note: Comments are the views of their authors, and no one else.)