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California State Controller John Chiang recently asked Californians to look for letters from the Internal Revenue Service that encourage taxpayers to take advantage of the Federal Earned Income Tax Credit (EITC). The Federal credit is worth up to $5,657 for the 2009 tax year.
“Taxpayers who claim the credit today could receive a check before the holiday season,” said Controller Chiang. “The Earned Income Tax Credit can make a tremendous difference to working Californians.”
The IRS said it was mailing notices to more than 46,000 targeted California filers in November as part of a special outreach project in to encourage more families to claim their Earned Income Tax Credit.
The average refund is $1,400, and 80 of the notices are going to Siskiyou County residents, according to information from the New America Foundation, a nonprofit, nonpartisan public policy institute “that invests in new thinkers and new ideas to address the next generation of challenges facing the United States,” according to a press release.
The IRS letters were being sent to individuals who appear to be eligible for the credit but did not claim it on their 2009 federal income tax returns. The credit is available to many workers and self-employed individuals whose incomes were under $49,000 in 2009.
A previous report from the New America Foundation found that when these funds are claimed, they are often used in the local community which acts as a local stimulus for businesses and creates jobs.
“We applaud the IRS for taking a proactive approach to help Californians claim their EITC refund,” said NAF California legislative director Olivia Calderon. “This credit helps families as well as local economies, and these notices are letting thousands across the state know that even though it’s almost Christmas, it’s not too late to claim their refund.”
The NAF’s report, “Left on the Table,” estimated that 800,000 Californians left $1.2 billion in EITC refunds unclaimed in 2009. Created under the Nixon Administration, the EITC targets low-income workers to combat poverty and incentivize work.
This current effort by the IRS is based on a proven New York model, according to NAF. That effort helped to bring more than $14 million in federal EITCs into the state.
“We’re always hearing how California doesn’t get its fair share of federal funds. Especially in light of the $25 billion hole in California’s budget, direct investments like this can yield a huge return,” said NAF program associate Maria Sotero. “These families are losing out on a credit of more than $1,000 on average. That amount really makes a difference.”
The NAF says it has long worked toward helping people permanently exit poverty by advancing financial empowerment policies to make it easier for them to build savings and enter the financial mainstream.
Information about the IRS special EITC outreach project is available at: http://www.eitc.irs.gov/ptoolkit/caproject/
The Left on the Table report is available at: http://newamerica.net/publication/policy/left_on_the_table
California State Controller John Chiang recently asked Californians to look for letters from the Internal Revenue Service that encourage taxpayers to take advantage of the Federal Earned Income Tax Credit (EITC). The Federal credit is worth up to $5,657 for the 2009 tax year.
“Taxpayers who claim the credit today could receive a check before the holiday season,” said Controller Chiang. “The Earned Income Tax Credit can make a tremendous difference to working Californians.”
The IRS said it was mailing notices to more than 46,000 targeted California filers in November as part of a special outreach project in to encourage more families to claim their Earned Income Tax Credit.
The average refund is $1,400, and 80 of the notices are going to Siskiyou County residents, according to information from the New America Foundation, a nonprofit, nonpartisan public policy institute “that invests in new thinkers and new ideas to address the next generation of challenges facing the United States,” according to a press release.
The IRS letters were being sent to individuals who appear to be eligible for the credit but did not claim it on their 2009 federal income tax returns. The credit is available to many workers and self-employed individuals whose incomes were under $49,000 in 2009.
A previous report from the New America Foundation found that when these funds are claimed, they are often used in the local community which acts as a local stimulus for businesses and creates jobs.
“We applaud the IRS for taking a proactive approach to help Californians claim their EITC refund,” said NAF California legislative director Olivia Calderon. “This credit helps families as well as local economies, and these notices are letting thousands across the state know that even though it’s almost Christmas, it’s not too late to claim their refund.”
The NAF’s report, “Left on the Table,” estimated that 800,000 Californians left $1.2 billion in EITC refunds unclaimed in 2009. Created under the Nixon Administration, the EITC targets low-income workers to combat poverty and incentivize work.
This current effort by the IRS is based on a proven New York model, according to NAF. That effort helped to bring more than $14 million in federal EITCs into the state.
“We’re always hearing how California doesn’t get its fair share of federal funds. Especially in light of the $25 billion hole in California’s budget, direct investments like this can yield a huge return,” said NAF program associate Maria Sotero. “These families are losing out on a credit of more than $1,000 on average. That amount really makes a difference.”
The NAF says it has long worked toward helping people permanently exit poverty by advancing financial empowerment policies to make it easier for them to build savings and enter the financial mainstream.
Information about the IRS special EITC outreach project is available at: http://www.eitc.irs.gov/ptoolkit/caproject/
The Left on the Table report is available at: http://newamerica.net/publication/policy/left_on_the_table
