Top 10 Reasons Why We LOVE the EITC
January 29, 2021Print
The Earned Income Tax Credit (EITC) is one of the most powerful anti-poverty tools in our tax code, boosting income for millions of working Americans each year. Though the EITC’s impact is felt in every state across the country, the IRS estimates that one in every five Americans who is eligible for the credit does not claim it, often due to a lack of awareness.
We want everyone who’s eligible for the EITC to receive the credit they’ve earned. Today we are joining thousands of other organizations, advocates, and policymakers across the country for EITC Awareness Day to help spread the word about this vital anti-poverty program. Read the top 10 reasons why we love the EITC below, and join the discussion on Twitter using #EITCAwarenessDay:
- The EITC puts money in the pockets of those who need it most. The credit helps about 25 million Americans keep more of what they’ve earned. During the COVID-19 pandemic, the EITC has been a critical component of relief packages because it gives low-income Americans the help they need.
- The EITC fights poverty. It lifts nearly six million people, including three million children, out of poverty each year.
- The EITC advances equity by helping to narrow the racial wealth divide and gender pay gap.
- The EITC provides temporary support during hard times. Most EITC filers claim the credit for only one to two years at a time.
- The EITC improves health outcomes, particularly for expectant mothers and infants.
- The EITC improves educational outcomes. Children in low-income families that benefit from state or federal EITC expansions perform better in school and are more likely to attend college.
- The EITC has long-term benefits for working women with children.
- The EITC enjoys bipartisan support. At the state and federal level, both Republicans and Democrats back the EITC as one of the best ways to reduce poverty and encourage work.
- The EITC helps increase life expectancy. Research shows that low-income individuals living in states that offer EITCs on top of the federal credit live longer than those in states that do not.
- The EITC helps service members make ends meet. Millions of military families and veterans benefit from the credit.