We encourage you to spread the word about tax credits which may benefit your membership, low-wage workers we are organizing and other workers in your community.

The American Recovery and Reinvestment Act of 2009 (ARRA) included important expansions of the Earned Income Credit and Child Tax Credit, and included the Making Work Pay Credit and American Opportunity Tax Credit.

The Center on Budget and Policy Priorities has posted brochures, fact sheets, outreach flyers and posters in English and Spanish on their website:  http://eitcoutreach.org/ .  For those who are not able to access the kits online and would like a hard copy, contact Gene Moore in the Research and Collective Bargaining Department at (202) 429-5025 or gmoore@afscme.org.

The Earned Income Credit (EIC) is a tax credit that supplements the earnings of people who work but don’t earn high incomes.  It benefits working families with children as well as low-income workers without children.  Last year, 24.6 million workers claimed the EIC worth $48.7 billion.  A new tier of benefits increases benefits to families with more than three children.  In 2010, the maximum credit increases to $5,657.

Single or married workers might qualify for the credit, depending on their income.  Workers raising one child with incomes of less than $35,463 ($40,462 for joint filers) may be eligible for an EIC worth up to $3,043.  Workers not raising children but earning $13,440 ($18,440 for joint filers) may qualify for an EIC worth up to $457.

Members who live in Delaware, the District of Columbia, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nebraska, New Jersey, New Mexico, New York, North Carolina, Oklahoma, Oregon, Rhode Island, Vermont, Virginia or Wisconsin may also qualify for their state EIC.

Child Tax Credit (CTC). Many workers also receive a substantial boost from the Child Tax Credit, a federal tax benefit for each dependent child up to $1,000.  The CTC can reduce a family’s income tax.  Even families that earn too little to owe income tax can get the credit in the form of a refund check from the IRS.  This credit is in addition to any EIC for which they may qualify.  Most low-income working families will qualify for both credits.

Making Work Pay Credit (MWPC) is a new tax credit worth up to $400 for individuals and $800 for married couples with adjusted gross incomes up to $75,000 ($150,000 for joint filers).   Workers must have a valid Social Security number. If filing jointly, one filer could have a Social Security Number and the other an ITIN, and the couple still could be eligible.

The American Opportunity Tax Credit (AOTC) is available for students who are in the first four years of college and are pursuing an undergraduate degree.  Workers may be eligible if they paid for “qualified educational expenses” for themselves, their spouses or their dependents and have an adjusted gross income in of less than $80,000 ($160,000 for joint filers). The ATOC is worth up to $2,500.