The King County Earned Income Tax Credit Campaign is a collaboration of the Annie E. Casey Foundation’s Making Connections Initiative, the Internal Revenue Service, Association of Community Organizations for Reform Now (ACORN), United Way of King County, The City of Seattle’s Help for Working Families Program, The Seattle Jobs Initiative, Puget Sound Labor Agency and many other partners in the public, private and nonprofit sector committed to helping low income working people in King County keep what they have earned and save for their future. The Earned Income Tax Credit (EITC) is a tax benefit for working people who earn low or moderate incomes. It has several important purposes: to reduce the tax burden on these workers, to supplement wages, and to make work more attractive than welfare. It is the nation’s most efficient anti-poverty program for working families. Data from the U.S. Census Bureau Current Population Survey indicate that in 1999, the EITC lifted 4.7 million people above the federal poverty line — including 2.6 million children of low-income workers. In 2000, over 19.2 million working families and individuals received the credit. For individuals, the Earned Income Tax Credit alone can account for a 30% to 40% boost in annual income in some cases. At a peak credit of $4,400 for the coming tax season, this is money that can make a real difference. We first provided free tax preparation services in White Center, a small diverse community south of Seattle in 2003, and continued in White Center while opening sites at Seattle-Tacoma International Airport and Bellevue’s Hopelink for the 2004 campaign. In the 2004 tax season the EITC Campaign prepared 1,772 returns yielding $2.1 million in total refunds and $820,000 in Earned Income Tax Credits for customers. In 2005 we expanded to a county wide, campaign adding sites throughout Seattle, South and East King County. With the assistance of 200 volunteers, the 2005 Campaign filed 4,531 returns, and returned approximately $6 million in federal refunds; $2 million in Earned Income Tax Credit; and $1.6 million in Child Tax Credit back to the community. All of this was accomplished at no cost to our tax customers who were truly able to "keep more of what they worked for." We estimate that we saved our customers $339,825 in tax preparation fees alone,1 and because we offered free electronic filing, we know that some former Refund Anticipation Loan users decided to keep more of what they earn by not borrowing their own money at high interest rates. At the tax sites we also helped people open bank accounts, learn more about financial education opportunities and apply for public benefits if they were eligible. This report highlights the unique components of this campaign, data found at each tax site and stories about how the campaign was able to make a real difference in peoples lives. Much of the data is based on the intake survey that 3,826 of our customers completed. Planning for the 2006 tax season is underway. We hope you will join us as we broaden the asset development program, strengthen the training for volunteers and site managers and improve the quality of service taxpayers receive. If you would like to become involved in the 2006 Tax Campaign, please contact: Sandra Fried, EITC Program Manager, 206-461-4562 or sfried@uwkc.org. Thank you for your hard work and dedication this past year! EITC Campaign Staff  |
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DOWNLOAD EITC Report 2005(PDF*)
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