Fw: [ILAssnMicroboardsandatives] Did You Know That Today Is Earned Income Tax Credit Awareness Day?

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FYI

Ellen

Ellen Garber Bronfeld

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FW: Did You Know That Today Is Earned Income Tax Credit Awareness Day?

Dear Colleagues:

As April 15 quickly approaches, I'd like to take a moment to highlight some

Federal efforts that may help individuals with disabilities and their families

make the most of their tax refunds.

Today marks the fifth annual Earned Income Tax Credit (EITC) Awareness Day. The

EITC is specifically designed to benefit hard-working low income families. This

tax credit is especially important in today's economy. More workers may qualify

due to reduced incomes, and individuals with intellectual and developmental

disabilities and their families have in many cases been hit particularly hard by

the economic downturn. EITC can make their lives a little easier.

Eligibility is based on several

factors<http://www.irs.gov/individuals/article/0,,id=150557,00.html>, including

the source and amount of your income, or combined income if married, whether you

have qualifying children and how many. Workers without children also may

qualify. The EITC Assistant at www.irs.gov<http://www.irs.gov/> can help

taxpayer! s determine their eligibility.

As part of ACF's effort to help families, the Office of Community Services (OCS)

houses our Assets for Independence<http://www.acf.hhs.gov/programs/ocs/afi/>

program, which works with state and local partners to provide financial

management and training services to help low income families develop strategies

for saving and managing their money. Working with the IRS to raise awareness of

EITC benefits is a critical part of this effort. Many don't realize that they

qualify or simply fail to claim the benefit when they file their taxes. The IRS

estimates that 25 percent of eligible recipients do not claim their EITC

benefits, and subsequently forfeit hundreds or thousands of dollars. Families

with earnings up to $48,000 last year could qualify for the EITC this year, and

those with 3 or more children could qualify for up to $5,666 in this credit.

Refunds from the EITC and other tax credits can essentially turn a $7.00 an hour

job into a $9.00 job, which needless to say, can have a substantial impact on

the stability of families. For more information about Earned Income Tax

Credits, please see: http://www.eitc.irs.gov/central/main

Volunteer tax assistance sites at more that 1,200 community locations and local

IRS Taxpayer Assistance Centers will prepare returns and help workers claim

their EITC. They provide free services to people who make approximately $49,000

a year or less. Free File, available at www.irs.gov<http://www.irs.gov/> will

let individuals electronically file their returns and claim their EITC using

brand name software products.

Additionally, more information for people with disabilities about filing taxes

and saving money, is available through the Real Economic Impact website,

http://www.realeconomi! cimpact.org/.

The IRS also describes seven tax deductions, income exclusions and credits that

are available for qualified taxpayers with disabilities in its brochure, " Living

and Working with Disabilities<http://www.irs.gov/pub/irs-pdf/p3966.pdf>. " These

deductions include Impairment-Related Work Expenses; Credit for the Elderly or

Disabled; Medical Expenses; and the Child or Dependent Care Tax Credit.

Additionally, the Tax Relief, Unemployment Insurance Reauthorization, and Job

Creation Act of 2010 (P.L. 111-312) was signed into law on December 17, 2010.

The law includes a provision that is important to individuals with disabilities

and their families. The new law requires all federal means-tested programs to

exclude all federal tax refund checks received between January 1, 2010 and

December 31, 2012 from counting against asset limits for a full 12 months after

receipt of the refund. Additional guidance on this provision will be forthcoming

soon.

Sincerely,

Sharon,

Sharon

Commissioner, Administration on Developmental Disabilities

Department of Health and Human Services

200 Independence Avenue, SW Room 405-D

Washington, DC 20201

Voice (202) 690-6590

Fax (202) 205-8037 website: http://www.acf.hhs.gov/programs/add/

Administration on Developmental Disabilities |

http://www.acf.hhs.gov/programs/add/

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