Today we heard from our friends at the Oregon Center for Public Policy (OCPP) and 211.org. Both organizations are sharing time sensitive and critical information regarding the Earned Income Tax Credit (EITC).
What is the EITC, and why does it matter? The EITC is a tax credit that benefits low (and moderate) income families when they file their taxes. It allows families to keep more of their earned income through a refundable tax return. That money can be used to help pay bills and other necessities.
It is known as “one of the most effective tools for alleviating poverty…When combined with the federal Child Tax Credit, the federal EITC helped lift 129,000 Oregonians, including 65,000 children, out of poverty each year between 2011 and 2013.” (Oregon Center for Public Policy).
According to the OCPP, Oregon families experiencing poverty are missing an opportunity to claim about $130 million per year when they file their taxes at year end. In fact, Oregon has one of the lowest rates of participation in the EITC among tax filers who are eligible. This means that Oregonians that qualify to receive the credit are not necessarily getting it. Continue reading Can a tax credit reduce poverty?