Employers

As an employer in the region, you have an opportunity to make a significant impact on your employees and the community.With this influence, comes responsibility.Please take a moment to read the information below to find out how you can, with very little effort, advocate for your employees and their economic well-being.

What is the EITC?

The Earned Income Tax Credit (EITC) is the single largest tool for poverty reduction being used in the United States today. Congress originally created the tax credit in 1975, in part to offset the burden of Social Security taxes and to provide an incentive to work. The EITC is for people who work hard but don’t earn high incomes. This is a federal tax credit available for qualified low income families and individuals designed to get money back into the hands of those who need it most. They do not have to owe taxes in order to claim the credit. When the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.

The average EITC refund in Central Oregon is $1,700. In total, the EITC brings over $20 million to the tri-county area. Our goal is to reach the 25% of the population who qualify for the EITC but do not file for it. For the 2008 tax year, the thresholds for earned and adjusted gross income (AGI) must be less than:

• $38,646 ($41,646 married filing jointly) with two or more qualifying children
• $33,995 ($36,995 married filing jointly) with one qualifying child
• $12,880 ($15,880 married filing jointly) with no qualifying children.
• Investment income must be $2,950 or less for the year

What is the Advance Earned Income Tax Credit?

Eligible employees can receive part of their EITC for the current year in their paychecks throughout the year, instead of waiting until they file their tax returns. To be eligible for this Advance Earned Income Credit (Advance EIC) payment, an employee must expect to have a qualifying child, expect to fall within certain income limits, and expect to meet other specific requirements, The employee who wants the credit must give his or her pay employer a completed and signed Form W-5, Earned Income Credit Advance Payment Certificate. The advance payment is added to the employee's net pay for the pay period. A new completed W-5 form is required each year to continue the Advanced EIC.

Click here for a current W-5 from the IRS
Click here for a currrent W-5 in Spanish from the IRS

How can I help my employees and communities?

We are partnering with local businesses to reach both their employees and their customers on EITC, CTC and Advanced EITC. Potential ways regional employers can become involved range from easy to easier. Here are some ideas:
  1. Display EITC materials in well-traveled areas within your office, such as break rooms, waiting rooms, and lobby areas.
  2. Educate for your employees through check stuffers, work room fliers, emails and newsletter articles (if applicable)
  3. Implement the W-5 form for the Advanced EITC.
  4. Print and implement a bill stuffer to your customers in the month of January.
  5. Host an on-site tax aid site on your property in February for your employees and/or customers
  6. Make an in-kind or direct donation to the coalition’s outreach and marketing efforts.
  7. Become part of our Take Credit tax aid coalition.
Please consider helping us expand EITC’s reach to eligible taxpayers in our community.
You can learn more about the EITC by visiting www.irs.gov/eitc. In the meantime, please feel free to contact Sarah Holtzclaw at the Partnership to End Poverty your convenience: 541-504-1389

Thank you in advance for your consideration.


 
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