The Office of Financial Education, housed in the Pennsylvania Department of Banking, has asked for our help in spreading the word to the PA Tourism & Lodging Association members about reminding eligible Pennsylvania employees to claim the Earned Income Tax Credit (EITC) when they file their 2010 federal income return.
The IRS’s EITC is a refundable tax credit which provides not only an incentive, but a valuable source of extra dollars to working families. Many lower-wage employees qualify for this tax credit but are not aware of it, or how to get it.
Background
According to the Internal Revenue Service, in 2009
- Over 900,000 Pennsylvania workers took advantage of the Earned Income Tax Credit <http://www.moneysbestfriend.com/default.aspx?id=80> (EITC) to help their families;
- The average credit claimed was $2,008;
- It is estimated that only four out of five families eligible for the EITC claimed it
Using these numbers, it is estimated that more than 200,000 Pennsylvania working families lost out on more than $400 million in tax reductions or refunds in 2009.
Free Online Resources
Realizing the staggering amount of money left out of the hands of working Pennsylvania families, our Office has created a new online resource for businesses and organizations that can educate their eligible employees on how to claim the earned income and other tax credits; as well as, take advantage of tax refund savings options, such as buying savings bonds when filing their returns and avoiding refund anticipation loans.
Businesses and organizations can visit this new section of the Your Money’s Best Friend website at:
www.moneysbestfriend.com/default.aspx?id=363.
Here you will find resources such as free downloadable paycheck stuffers, posters, IRS forms, and calculators to help employees get the most from their tax return. Lower-wage employees can also have their tax returns prepared for free at Volunteer Income Tax Assistance <http://www.moneysbestfriend.com/default.aspx?id=78> (VITA) sites or use the IRS's Free File program to prepare and file their own taxes.
How You Can Help Pennsylvania Working Families
The Office of Financial Education is asking you to forward this information onto your membership as early as possible. Refund anticipation loan providers use the holiday season to entice filers into loans against future tax refunds. Feel free to forward this email on to your communications, HR or regional offices for their distribution as well.
If you have any further questions about this issue or would like more information on the free financial education resources and services provided to employers, please feel free to contact Becky MacDicken, our workplace financial education specialist, at 717-783-2498 or bmackdicken@state.pa.us.
