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With the deadline to file income taxes approaching, two online resources are available to help direct-care workers receive federal and state Earned Income Tax Credits (EITC) and other credits, and also access free tax preparation services:

• The Earn, Keep, Save MORE website, hosted by PHI, provides information on which states offer EITC and other credits, and Michigan-specific information.
• The It All Adds Up Toolkit provides Iowa-specific information and is housed on the Iowa CareGivers Association site.

Long-term care employers are encouraged to use the sites to download materials — paycheck stuffers, fact sheets, and posters — to help their employees make this a rewarding tax season.

– by Deane Beebe

For the third consecutive year, PHI is hosting the Earn, Keep, Save MORE website, an online tax resource center to help direct-care workers get the tax credits that they are entitled to receive and access free tax preparation assistance services.

The Earn, Keep, Save MORE website — designed for direct-care workers and employers in Michigan and across the nation — provides information on:

• state and federal Earned Income Tax Credits (EITC);
• Volunteer Income Tax Assistance (VITA) sites; and
• The Beehive — a free online tax preparation service and financial education site.

Long-term care employers are encouraged to use the site to download materials — paycheck stuffers, fact sheets, and posters — to help their employees make this a rewarding tax season.

Tax Credits Boost Income

The EITC is a refundable tax credit for low- and moderate-income families and individuals.

A family can receive an EITC of up to $5,751, depending on income and family size. Anyone eligible for a federal EITC automatically qualifies for a state EITC if their state offers it; most states do. State tax credits range from 3 percent to 40 percent of the federal EITC.

“Many who are eligible for the EITC do not claim it — either because they don’t know about it or they don’t think they will be eligible because they do not owe any taxes,” said PHI Senior Workforce Advocate Tameshia Bridges, who has been coordinating the Earn, Keep, Save MORE efforts in Michigan since the program began.

“Getting a large tax refund with the help of EITC can mean extra money to catch up on bills, buy a computer for the family, or open up a savings account.”

Free Tax Preparation Assistance

VITA sites — sponsored by community-based organizations and staffed by IRS-trained volunteers — provide free tax preparation assistance and often offer workshops on saving and financial planning.

Families with an annual income below $50,000 are eligible for free tax preparation assistance at VITA sites through April 15.

The Beehive makes it possible for people who do their taxes themselves to file both their state and federal taxes for free online.

More information on EITC eligibility, as well as materials to help employers spread the word about EITC and VITA sites, are available on the Earn, Keep, Save MORE site.

– by the PHI Policy team

The Small Business Majority is sponsoring a free webinar series during the week of April 11 to give small businesses a last-minute opportunity to learn about the new health care tax credit that is available through the 2010 income tax return.

The series will feature a number of Small Business Association regional administrators in various states, who will provide information on the tax credit as well as other provisions of the Affordable Care Act that affect small businesses (pdf). The online sessions will be followed by a question-and-answer period.

The series will also include the webinar, What Health Care Reform Means For Women and Small Business, which will take place on April 14.

Visit the Small Business Majority site for more information about the webinar series and to register.

– by Deane Beebe

As the deadline for filing taxes draws near, direct-care workers — and employers who want to assist them — can still take advantage of PHI’s new online tax resource center designed to help direct-care workers get the tax credits they are entitled to receive and access free tax preparation assistance sites.

“Many providers participated in this year’s outreach effort by sharing information with their staff about the Earned Income Tax Credits and free tax services, and provider associations distributed information about the resources to their members,” said PHI Senior Workforce Advocate Tameshia Bridges.

“PHI appreciates everyone’s support in getting this information out during tax time. We hope that direct-care workers found the resources on the site helpful and took advantage of the tax credits and free services this tax season,” Bridges said.

PHI’s Earn, Keep, Save MORE website hosts materials — including “paycheck stuffers,” fact sheets, and workplace posters — that long-term care employers are downloading to educate their employees about state and federal Earned Income Tax Credits (EITC). The site also provides easy-to-access information on how to locate Volunteer Income Tax Assistance (VITA) sites.

The user-friendly tax resource center is designed for employers and direct-care workers themselves.

Rightfully Earned Tax Credits

“One quarter of families who qualify for the Earned Income Tax Credit do not claim it — either because they don’t know about it or because they do not think that they will be eligible since they don’t owe any taxes,” said Bridges, who has been working to raise awareness about EITC and VITA in Michigan for a few years.

The EITC is a refundable tax credit for low- and moderate-income families and individuals.

Single individuals with incomes of up to $43,352 and married couples whose incomes are up to $48,362 are eligible for a federal earned income tax credit of up to $5,666, depending on family size.

Anyone eligible for a federal EITC automatically qualifies for a state EITC if their state offers it; more than half of the states do. State tax credits range from 3 percent to 40 percent of the federal EITC.

Free Tax Preparation Assistance

VITA sites provide free tax preparation assistance and are staffed by IRS-trained volunteers. They are sponsored by various community-based organizations that often offer workshops on saving and financial planning.

Families with an annual income below $49,000 are eligible for free tax preparation assistance at VITA sites through April 18, the extended deadline.

The average annual income (pdf) of all direct-care workers is $17,000; 41 percent of the workforce relies on public assistance.

More information on EITC eligibility, as well as materials to help employers spread the word about EITC and VITA sites, are available on the Earn, Keep, Save MORE site.

Share Your EITC Experience

PHI is seeking stories from employers who provided information to their staff about the tax credits and VITA sites, and workers who used a free tax site or benefited from the EITC. Please contact Tameshia Bridges to share your EITC experience.

– by Deane Beebe

Several Michigan legislators are proposing to help fill the state’s $1.8 billion budget gap by eliminating the Michigan Earned Income Tax Credit (EITC) program.

(UPDATE: On March 23, PHI Michigan Senior Workforce Advocate Tameshia Bridges testified [pdf] in front of the Michigan House’s Tax Policy Committee about the importance of retaining the EITC

The EITC is a refundable tax credit for low- and moderate-income working families and individuals, including those who are employed as direct-care workers. State EITC programs are modeled after — and supplement — the federal EITC program.

A Senate bill (pdf) to repeal Michigan’s 3-year-old EITC program was introduced on February 8. House Republicans are also considering eliminating the state program; Governor Rick Snyder (R) has not yet taken a position on it, reported the Lansing State Journal.

A Critical Support

“In Michigan, the federal and state EITC helps 800,000 working families achieve greater financial security and an estimated 14,000 families from falling into poverty while also stimulating local economies,” said Ross Yednock of the Community Economic Development Association of Michigan (CEDAM).

“The EITC is a critical support to thousands of low- and moderate-income families in Michigan, helping hard working families pay bills, make necessary repairs to homes and cars, and save. The EITC is why more Michigan families can keep, and save, more of their hard-earned dollars,” Yednock said.

Michigan EITC provides a credit of $436 on average, which amounts to a 25 cents per hour raise for Michigan’s direct-care workers.

Despite Recession, State EITCs Have Broad Backing

Twenty-four states have state EITC programs. Anyone eligible for a federal EITC automatically qualifies for a state EITC, if offered. State tax credits range from 3 percent to 40 percent of the federal EITC.

“The recession has reduced state revenues, lessening their ability to finance new EITCs or expand existing credits and, in a few cases, leading to cuts for existing credits,” said LeElaine Comer of the Corporation for Enterprise Development.

For example:

• New Jersey reduced its EITC to 20 percent from 25 percent of the federal credit in 2010;
• Iowa and Virginia cut benefits by setting their credits at a percentage of the pre-2009 federal EITC benefit levels (adjusted for inflation), which means the EITC changes under the Recovery Act do not apply; and
• Washington enacted a credit in 2008 but postponed implementation until tax year 2012.

“However,” Comer added, “as one of the largest and most effective wage support programs for low- and moderate-income families, EITCs continue to receive broad backing from both sides of the aisle, and advocates across the country continue to support and defend state EITC legislation.”

Five states, Iowa, Connecticut, Illinois, Hawaii, and Maine, have introduced bills to enact or increase their state EITC.

Earn, Keep, Save MORE

PHI recently launched Earn, Keep, Save MORE, an online tax resource center with eligibility criteria for EITCs, in an effort to aid long-term care providers in assisting direct-care workers to apply for tax credits that they are entitled to receive.

Michigan’s EITC program is still being offered for the 2010 tax year. Returns need to be filed by April 18.

If you are interested in getting involved in the effort to save Michigan’s EITC, contact Tameshia Bridges, PHI Michigan Senior Workforce Advocate, at tbridges@phinational.org.

– by Deane Beebe

PHI launched an online tax resource center on December 15, to help direct-care workers get the tax credits that they are entitled to receive and to access free tax preparation assistance sites.

Earn, Keep, Save MORE hosts materials — including “paycheck stuffers,” fact sheets, and workplace posters — that long-term care employers can download to educate their employees about state and federal Earned Income Tax Credits (EITC). The site also provides easy-to-access information on how to locate Volunteer Income Tax Assistance (VITA) sites.

The user-friendly tax resource center is designed for employers and direct-care workers themselves.

Rightfully Earned Tax Credits

“Each year, about one quarter of families who qualify for the Earned Income Tax Credit do not claim it — either because they don’t know about it or because they do not think that they will be eligible since they don’t owe any taxes” said PHI Senior Workforce Advocate Tameshia Bridges, who has been working to raise awareness about EITC and VITA in Michigan for a few years.

“PHI is reaching out nationally to long-term care employers with information on EITC and VITA, so that they can support direct-care workers in filing tax claims for what they have rightfully earned,” Bridges said.

The EITC is a refundable tax credit for low- and moderate-income families and individuals.

Single individuals with incomes of up to $43,352 and married couples whose incomes are up to $48,362 are eligible for a federal earned income tax credit of up to $5,666, depending on family size.

Anyone eligible for a federal EITC automatically qualifies for a state EITC if their state offers it; more than half of the states do. State tax credits range from 3 percent to 40 percent of the federal EITC.

Free Tax Preparation Assistance

VITA sites provide free tax preparation assistance and are staffed by IRS-trained volunteers. They are sponsored by various community-based organizations that often offer workshops on saving and financial planning.

Families with an annual income below $49,000 are eligible for free tax preparation assistance at VITA sites from mid-January through April 15.

“Every extra dollar in an aide’s pocket helps her to better make ends meet,” Bridges said. “PHI is calling on long-term care employers to help get the word to direct-care workers about earned income tax credits and we have provided them with the tools to make the process easier.”

The average annual income (pdf) of all direct-care workers is $17,000; 41 percent of the workforce relies on public assistance.

More information on EITC eligibility, as well as materials to help employers spread the word about EITC and VITA sites, are available on the Earn, Keep, Save MORE site.

– by Deane Beebe