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April 4, 2002 Democrats spearhead outreach effort
to assist Nassau's working families
Tax relief program could put $11 million in pockets of low income families Mineola, NY - Legislator Patrick Williams (D-Uniondale) joined Nassau County's Presiding Officer Judy Jacobs (D-Woodbury) in announcing a Countywide outreach effort today that would put money back in the pockets of eligible working families in Nassau through the Earned Income Tax Credit (EITC), a special Federal and state refundable tax benefit. Surrounded by almost two dozen Nassau County agencies that will participate in the outreach effort, including the Health and Welfare Council of Long Island which is the designated EITC agency for Nassau and Suffolk counties, Presiding Officer Jacobs explained that the Earned Income Tax Credit is a tool to help reduce the tax burden on low to moderate income families. "There are thousands of residents in Nassau County who are eligible for the Earned Income Tax Credit and who don't know about it or fail to file the forms needed to claim it," said Presiding Officer Jacobs. "It is vitally important that we get this information into the hands of all those who are entitled to the tax credit since it can put real money back into their pockets. There is no down side," Jacobs added. The Federal and state EITC for low to moderate working families is intended to reduce the tax burden on workers, to supplement wages, and to make work more attractive than welfare. Workers who qualify for the EITC and file Federal and state tax returns can get back some or all of the income tax that was deducted from their salaries during the year. Even workers whose earnings are too small to have paid taxes could be in line for a refund. Legislator Williams reminded Nassau residents that with the recent slow down in the economy and the higher unemployment rate in the aftermath of September 11, more people may suddenly find themselves in lower paying jobs and thus would be eligible for the tax credit. "I am certain that from the information we have received, there are individuals who are unaware of this tax credit. This is a reward for hard working families that are struggling to make ends meet," said Legislator Williams on behalf of the Democratic majority. Michael McCormick, Territory Manager for the Internal Revenue Service, said according to statistics complied in a December 2001, General Accounting Office (GAO) report, as many as 25% of people entitled to the EITC do not claim it. "If this figure holds true for Nassau County, more than 15,000 County residents did not claim $11 million or more in tax benefits," Mr. McCormick said. According to GAO statistics, a total of 46,515 Nassau residents claimed $69,283,250 for the EITC in 1999, for an average of $1,498 per taxpayer. An estimated 15,350 more residents could have claimed it. The largest group of non-claimers (60%) is single people without children. The analysis does not take into account the New York State EITC, which is generally 25% of the Federal amount. Qualifying individuals who have worked full or part time in the past year and earned modest incomes - $28,231 or less with one child; $32,121 or less with two or more children; and individuals from 25-65 earning $10,710 or less with no children - could be eligible for anywhere from a few hundred dollars to $5,000 depending on their situation. Those qualifying would receive a check directly which, depending on income and other factors, could amount to as much as $5,000 combined Federal and state EITC. Families may file for three years retroactively. For families in transition from welfare to work, monies returned under EITC would not count as income in determining eligibility for programs such as Medicaid, Food Stamps, SSI and other Federal programs. "This program benefits more than just the families, but the communities as well since most of the money will be spent locally, thereby benefiting local merchants and businesses," said Williams. "At a time when the economy is struggling the EITC can be a boost for everyone involved." |