News from San Leandro WORKs!

    Did you know that low and moderate-income workers can get substantial benefits when they file their tax returns this year?  They can do this by claiming an Earned Income Tax Credit. Davis Street Family Resource Center, San Leandro Community Church, and the rest of the collaborative that makes up San Leandro WORKs! are working to promote the use of this credit by becoming a Volunteer Income Tax Assistance (Vita) site.

    The Earned Income Tax Credit (EITC) is an income support for low income working Americans, particularly families with children.  It is the second largest program after Medicaid for providing assistance to low income working individuals and families. It is a refundable tax credit that reduces the amount of Federal tax owed, and can result in a tax refund check, going back three years. Even if they are otherwise exempt from income tax, low income workers must file a tax return in order to receive the credit.

    A family's combined earned income and number of children affect the cash value of the EITC. In 2001, the credit reached a maximum of $364 for childless taxpayers, $2,428 for taxpayers with one child, and $4,008 for taxpayers with two or more children. For example, a working family with children and earnings below $32,000 can get up to $4,000.  A new federal  "child tax credit" means as much as $600 more per child for some families. These credits are available even if the worker owes no income tax.  The EITC does not generally affect eligibility for Medicaid, Supplemental Security Income (SSI), food stamps, or low income housing. The EITC Eligibility Checklist on the last page of IRS Publication 596, Earned Income Credit, may be used to quickly determine eligibility for the credit.

Davis street Family Resource Center will provide free electronic filing open to all.  Volunteers will be trained by the IRS.  Multilingual volunteers will be available to help.

TheVita site is located at "Davis Street Family Resource Center" 3081 Teagarden Street, and will be open during evening hours on weeknights after 5:00 pm and Saturdays(February- April.   But low-income working residents won't get this credit if they do not know about it.