The Best Anti-Poverty Program in America

Last year more than 680,000 Pennsylvania families and individuals received $1.04 billion in Earned Income Credit (EIC) refunds. It was a boost that lifted many of them out of poverty. For the eligible who did not apply, it was an opportunity lost.

Susan Orkin, Chair of the Money In Your Pocket Campaign at the United Way of the Capital Region, wants to spread the word about EIC to agency staff and clients. Orkin says "People need to be alerted that this [EIC] is available." She continues, "Sometimes even the tax preparation professionals need to be reminded of EIC."

The Money In Your Pocket Campaign seeks to spread the word about the benefits of tax credits and refunds. For example, the EIC is available to people who worked but owe NO TAXES. For a worker raising two children and earning between $9,500 and $13,000, the refund would be $4,008. Those with fewerchildren or higher incomes get less, but there are refunds for workers with children with incomes up to $32,000.

There is also a child tax credit worth up to $600 per child in 2001 for families with annual earned income of at least $10,000.

A third credit, Child and Dependent Care, helps families who paid for care in 2001 for a child or disabled adult that lives with the family. Families qualify if they need the care to work or look for work; if they paid half the cost of the household; and if they paid less for dependent care than their 2001 income. The credit is worth between 20-30% of expenses up to $2,400 for one child and $4,800 for two.

There is also a Pennsylvania state tax credit called TAX BACK which helps low income families get a refund on some or all of their state taxes.

Help to navigate these issues is available available in central Pennsylvania by calling Susan Orkin at (717) 566-1058, in Pittsburgh by calling Just Harvest at (412) 464-0739, and in Philadelphia by calling Community Legal Services through their Welfare Law Line at (215) 227-6485.

According to the Center on Budget and Policy Priorities, tax credits lift more families out of poverty than any other government program. So pass the word and use those credits!

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