About the Earned Income Tax Credit
As we are approaching tax filing season, ACT is engaging non-profit partners and community members to help ensure that as many families as possible receive the full Child Tax Credit (CTC) and Earned Income Tax Credit (EITC) benefits they are eligible for, as quickly and as easily as possible.
The expansions of the federal CTC and EITC present a critical opportunity to dramatically improve financial stability for families with low income. However, these expansions can only achieve their goals if families know about the credits, are able to enroll, and can get their taxes done in free and non-predatory settings.
A key implementation challenge is that families who earn the least do not typically file income tax returns because they are not required to (sometimes called, non-filers). Therefore, the IRS has no record of them, and they will not get the EITC refund. A big push to reach an estimated 5 million non-filers and also assist them with three interrelated touchpoints: outreach and navigating enrollment, sharing stories of success and shaping the local narrative on families in need, and helping families to file or reconcile tax returns in early 2022.
The most immediate need is to provide non-filers with the resources and assistance to apply for EITC. There are a variety of free tax counseling and filing resources posted under Resources below. It is also possible for tax filers to seek past stimulus funds they may not have received through the 2021 Recovery Rebate Credit.
ACT is continuing to raise awareness of EITC to ensure every qualified worker claim and receive their EITC. Below are resources that can be used for outreach and building awareness about the importance of the EITC and CTC.
Tax Prep and EITC Mini Grant Program
Grants are now available to support outreach efforts to nonprofits that help constituents prepare for the tax filing process. Organizations can apply for grants up to $5,000 and applications will be approved on a rolling basis until the program closes on March 25.
Examples of mini grant funded activities include:
- Outreach and awareness – helping to explain the process, options for tax filing and what to expect
- Navigating the tax filing process – assisting with acquiring necessary documents for filing, uploading photos of documents, helping filers find a free tax prep site that fits their schedule and needs
- Providing Wi-Fi or technology access for filers
- Hosting pop up filing events in partnership with tax experts
- Making sure resources are accessible in multiple languages
- Recording testimonials/stories (video, audio or written) to highlight the benefits of filing and the tax credits
- Other ideas that are appropriate for your organization and constituents
Tax Prep Flyer 2022_Final
ACT Grant Opportunity_Tax Credit Workshop How to Get a TAX ID Number (ITIN)_Spanish How to Get a TAX ID Number (ITIN)_English LSNV Tax Credit Workshop Presentation Slides
View the Tax Prep Workshop Presentation
Social Media Samples in English and Spanish