As reported in the Charlotte Post. As written by Chris Cox
“The Earned Income Tax Credit is probably the number one cash benefit program for low-income families in the country,” according to Chris Rockey, senior vice president, market manager, Greater Maryland Community Development Banking for PNC Bank.
“It can be a challenge to get into the program,” Rockey adds, “but it is a way to put needed cash into a family’s pockets.”
The EITC was implemented as a way
to offset the impact of Social Security taxes on low to moderate
taxpayers and to provide them with an incentive to work. The credit can
be worth up to $6,431 for 2018 and up to $6,577 in 2019 for families
with three or more qualifying children. For taxpayers with two
qualifying children, the maximum credit this year is $5,828. The maximum
credit for one qualifying child is $3,526.
“The EITC is different than other
federal assistance programs,” Rockey said, “because you actually have to
have income in order to qualify.”
There are several ways individuals
can determine if they are eligible for the EITC, Rockey explained. “A
number of community action associations through their financial programs
are very aggressive about educating their clients about the EITC, as
well as other programs like the CTC [Child Tax Credit],” he said.
Rockey
also noted that he has seen a trend with Volunteer Income Tax
Assistance, or VITA, preparation sites whereby they are focusing on
reaching out to working families to help them through the eligibility
process.
“There are clearly efforts under
way from an educational standpoint, “Rockey said, “but like any other
government program it can be cumbersome, and unless you have someone who
can help you navigate the twists and turns it can be confusing.”
In a best case scenario, Rockey
notes, a family or individual works with a case manager or social worker
who is skilled in the process. He adds that by consulting with a VITA
site, taxpayers can position themselves to be eligible for next year’s
credit even if they are not signed up for the current tax year. It is
also possible to apply for the benefit retroactively.
Rockey said that PNC Bank does not
work directly with potentially eligible taxpayers to qualify them for
the EITC, but it does explain how the program works and will refer them
to its trusted community partners for intake. “Our partners can provide
the information and resources our customers are looking for,” he adds.
Still, obtaining accurate,
reliable information about the EITC can be a challenge, Rockey warns. It
is often difficult for those who need information about their
eligibility to get access to transportation and take time off from work
to meet with someone who can help them to qualify.
“It’s not just getting educated
about the EITC,” he said, “it’s also about learning how to access the
benefits while keeping their job.”
Even in the current divided
political environment, Rockey is encouraged about the outlook for the
EITC because over the years it has gained a great deal of bipartisan
political support. In recent years, he adds, there has been some talk
of trying to modernize some of the EITC’s income qualifications.
“Unlike federal programs that
benefit individuals and families who are not in the workforce, “he said,
“the EITC provides a direct benefit to the working poor. Whether you
are an R or a D, you want more people in the workforce.”