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EITC Free Tax Preparation
EITC Free Tax Preparation is a free tax preparation service for low and moderate income families.
The Earned Income Tax Credit (EITC), enacted by Congress in 1975, is a refundable tax credit that increases the income of low-and-moderate income working families through the provision of tax reductions and wage supplements. The program’s primary purpose is to aid employed workers in achieving and maintaining their independence from welfare by making work more attractive.
The EITC has been widely praised for its effectiveness in reducing poverty and has been instrumental in closing the poverty gap for the country’s working poor. Since low-income families pay little or no Federal income taxes, the refunds received represent increases in income, not reductions in taxes owed, providing a greater level of support. The EITC is designed to fill a gap between what can be earned in the labor market and what is required to meet household needs. Our client surveys indicate that most families use the EITC to pay for basic necessities, such as housing, food, and transportation and in some cases, to obtain additional education or training to boost their employability and earning power. This type of spending improves the health of local economies and creates a much needed “ripple effect” leading to more vibrant, stable communities.
One of the goals of the EITC Coalition is to provide asset building opportunities for people receiving free tax assistance. Click this link to view Financial Literacy Resources