Earned Income Tax Credit E.I.T.C.

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Earned Income Tax Credit (E.I.T.C.)
Presenters Wayne Tormala, City of Phoenix
Nichole Ayoola, City of Mesa Steve Wise, Tempe
Community Council
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• Earned Income Tax Credit

• Largest Federal Tax Benefit Program

• Work Incentive vs. Public Assistance

• 32 Billion Dollars in Tax Refunds

Lifted nearly 5 Million out of Poverty!!
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• Who Can Receive E.I.T.C.?

• For 2003, the maximum family income will be
  34,692 and the maximum credit _at_ 4,204

• Eligibility for the credit and the size of the
  credit is determined by a familys income and
  number of dependents.

• Single persons with very low incomes also qualify
  for a small E.I.T.C.

• Undocumented workers are not eligible for
  E.I.T.C. but can receive Child Tax Credits- ITIN

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• E.I.T.C. CHALLENGES

• Lack of awareness of the program

• Transaction costs

• Predatory Practices.

• High Commercial Fees

• Rapid-Refund Loans

• Check-Cashing Operations

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• Impact of E.I.T.C. in Phoenix

• 35,000 Workers are NOT Receiving the Financial
  Boost

• 25-64 Million of Unclaimed E.I.T.C.

PHOENIX IS MISSING THIS ECONOMIC BOOST!!
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• Impact of E.I.T.C. in Mesa

• Over a half million dollars in total refunds
  (EITC other refunds) returned to residents
• 548 families assisted(filings for 02)
• 234 families received E.I.T.C. (filings for
  01)

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• Impact of E.I.T.C. in Tempe/Guadalupe

• 443 returns filed

• Over 340,000 returned in E.I.T.C. average of
  1,056

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• How People Use Their EITC

• Pay Bills
• Make Significant Purchases

• Homes
• Auto

• Education Training

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Research included Best Practices in Cities
Nationwide.

• Chicago

• Baltimore

• Des Moines

• Denver

• Indianapolis

• Kansas City

• Louisville

• Tulsa

• Oklahoma City

• San Antonio

• Miami

• Houston

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Proposed Phoenix E.I.T.C. Campaign

• Public Awareness

• Asset Building Education

• Targeted Communities

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Public Awareness

• Media Alerts
• Schools
• Utility Companies
• Employers
• Churches
• Public Forums

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Marketing Ideas Used in Mesa

• Website
• News
• Radio
• Television
• Fliers in the community
• Direct mail letters

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Asset Building Education

• Financial Literacy Training
• Individual Development Accounts

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Maryvale
Targeted Communities
South Phoenix
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85031
85037
85033
85035
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85009
85007
85041
85040
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GOALS.
1. Increase Public Awareness
2. Increase Utilization
3. Reduce Transaction Costs
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• ADDITIONAL E.I.T.C. CHALLENGES

• Volunteer Management

• Community Education

• Technology

• Bringing in the Business Community

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• E.I.T.C. in Mesa looking forward

• Increase access to E.I.T.C.
• 48 active E.I.T.C. volunteer income tax preparers
• Advocacy
• Coalition-building
• Outreach
• Capacity-building

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• E.I.T.C. Experience in Tempe

• Responsibilities
• IRS handles the taxes tax training
• City handles the community coordination any
  specialized volunteer training

• Two parts
• Public relations
• Completing returns

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Tempes Tips

• BIG issue -TECHNOLOGY
• MOBILIZE your resources early!
• Dont underestimate volunteer response
• THINK REGIONAL when picking tax prep sites
• Tie in with other VITA sites -
  you will need them
• Remember -results are tangible (including tax
  refunds other tax credits)

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WORKING POOR
Who Benefits?
Businesses
Employers
E.I.T.C.
Local State Govt.
Banks
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E.I.T.C.
Available Local Resources Implemention IMM
EDIATE effect on local community
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• Earned Income Tax Credit (E.I.T.C.)

The following individuals are available to
visit your municipality/organization and provide
further information on establishing an E.I.T.C.
program in your area. Wayne Tormala, City of
Phoenix [phone] Nichole Ayoola, City of
Mesa [phone] Steve Wise, Tempe Community
Council [phone]