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2010 Tax Year Earned Income Tax Credit

2010 Tax Year Earned Income Tax Credit. Presented by The Thomas Jefferson Area Earned Income Tax Credit Coalition. Agenda. About the Thomas Jefferson Area Earned Income Tax Credit Coalition About the EITC Coalition Coalition Partners

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2010 Tax Year Earned Income Tax Credit

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  1. 2010 Tax YearEarned Income Tax Credit Presented by The Thomas Jefferson Area Earned Income Tax Credit Coalition

  2. Agenda • About the Thomas Jefferson Area Earned Income Tax Credit Coalition • About the EITC Coalition • Coalition Partners • Introduction to the Earned Income Tax Credit (EITC) • Who is eligible • Where your employees can go for free tax preparation • How to help your employees through successful EITC education strategies • Questions & Answer • Why EITC Matters

  3. About our Coalition In 2007, Virginia Delegate David J. Toscano initiated a local coalition to coordinate efforts and reach all community members eligible for the Earned Income Tax Credit (EITC). Community agencies, businesses, and local government are all part of the coalition.

  4. About our Coalition The partners of the local coalition provide: • Free tax preparation for eligible taxpayers through the IRS Volunteer Income Tax Assistance (VITA) program. • Education and outreach to share information about how to claim the EITC and where to get free tax preparation. • Employer outreach and education about the EITC and other financial education programs.

  5. EITC Coalition Partners • Delegate David J. Toscano • Area County Governments • Charlottesville Regional Chamber of Commerce • Madison House, CASH program • Monticello Area Community Action Agency • Piedmont Housing Alliance • United Way-Thomas Jefferson Area • University of Virginia • UVA Community Credit Union • Variety of other business and non-profit entities

  6. What is the Earned Income Tax Credit? • The Earned Income Tax Credit (EITC) is a refundable federalincome tax credit for low to moderate income working individuals and families • Reduces amount eligible taxpayers may need to pay in taxes, or could result in a refund of the taxes withheld from their earnings • The EITC allows working taxpayers to keep more of what they earn

  7. What is the Earned Income Tax Credit? • EITC income thresholds for tax year 2010 ranges • From $13,460 (if single with no children) • Through $48,362 (married filing jointly with three or more qualifying children) • Families can claim up to $5,666

  8. Why it matters? • The EITC is one of the federal government’s largest and most effective anti-poverty programs • Helps reduce the federal tax burden on low to moderate income workers • Lifts families out of poverty • Supplements wages • Builds long-term assets

  9. Why it matters? • Tax refunds are generally spent by the recipients in their community – creating an economic stimulus

  10. New for Tax Year 2010 • Continuation of the American Recovery and Reinvestment Act (ARRA) • has significantly increased the number of households eligible for EITC benefits • Expect higher number of taxpayers to qualify for EITC due to expanded eligibility requirements and economic situation

  11. What we do • Free tax preparation for eligible taxpayers through the IRS Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) Programs • Education and outreach to share information about how to claim the earned income tax credit and how to access other resources available in our community

  12. Free tax preparation in our community 1. Volunteer Income Tax Assistance (VITA) Sites • perform tax preparation for individuals/households earning $49,000 or less in 2010 • Basic returns only (non-itemized tax returns) • AARP Tax Aide Sites (TCE Program) • perform tax preparation for individuals/households regardless of income or age • Itemized tax returns, some restrictions apply

  13. Coalition goals for 2011 (TY2010) • Increase number of VITA sites from 8 to 11 (in addition to the 4 AARP Tax Aide sites) • expand into Nelson County & increase coverage in City of Charlottesville/Albemarle • Increase taxpayer awareness • Focus on geographic areas with new/newer VITA sites in Greene, Fluvanna, Louisa, and Nelson counties

  14. Virginia EITC & Creditfor Low Income Individuals • An income tax credit for individuals whose family Virginia adjusted gross income is: • Equal to or less than the amounts established under the federal poverty guidelines • or who claimed the earned income tax credit on their federal income tax return • Detailed information provided in EITC Employer Manual (page 2)

  15. Coalition goals for TY2010 • Prevent taxpayers from seeking costly Refund Anticipation Loans • Returns filled electronically can receive refunds in 7 to 10 days or less! • Help create an economic stimulus in the Greater Charlottesville Region by helping local taxpayers claim $1.5+ million in federal tax refunds

  16. Thank you We appreciate your support. Questions? Please Contact: Pamela Frank EITC Coalition Coordinator (434) 972-1715

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