Nassau County Legislature - District 1 Press Releases

February 19, 2004

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 - Nassau County Legislator Kevan Abrahams (D-Hempstead) announced 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.

"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 Legislator Abrahams. "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," Abrahams 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.

"I am certain that from the information we have received, there are individuals who are still unaware of this tax credit. This is a reward for hard working families that are struggling to make ends meet," said Legislator Abrahams on behalf of the Democratic majority.

According to GAO statistics, a total of 52,079 Nassau residents claimed the EITC in 2002, for a total of $81.8 million dollars. An estimated 7,811 more residents could have claimed it. The largest group of non-claimers (60%) is single people without children. Out of the people likely to submit a claim, 15% are married, 40% are single women, 45% are single men and 80% have completed high school and received their high school diploma. The analysis does not take into account the New York State EITC, which is generally 30% of the Federal amount.

Qualifying individuals who have worked full or part time in the past year and earned modest incomes could be eligible for anywhere from a few hundred dollars to $5,000 depending on their situation. If you work full time and have two or more qualifying children and your earned income was less than $33,692, than you are eligible to receive $4,204. If you work full time and have one child and your earned income is less than $29,666, you are eligible to qualify for as much as $2,547 in credit. If you work full time but do not have a child and your income is less than $11,230 you are eligible to receive up to $382.00.

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 Legislator Abrahams. "At a time when the economy is struggling the EITC can be a boost for everyone involved."

Please call 1-800-829-1040 or visit their website at www.hwcli.com to ask questions about the EITC and other tax issues.