Department of Health and Human Services
Administration For Children and Families Region V
Illinois* Indiana* Michigan* Minnesota*Ohio*Wisconsin
233 North Michigan Avenue, Suite 400
Chicago, Illinois 60601-5519
Telephone (312) 353-4237
Fax (312) 353-2204January 2008
Dear Colleagues:
Once again it will soon be time for all of us to complete our Federal and State tax returns. Therefore, I am taking this opportunity to share updated information with you concerning the Federal Earned Income Tax Credit (EITC) -- a vital tax benefit available to many of the low-income working families served by your agency/program. The EITC has several important purposes: to reduce the tax burden on these families, to supplement wages, and to make work more attractive than welfare. The EITC is now more valuable than ever, having increased to a maximum benefit of $4,716 for the 2007 tax year.
Preliminary IRS reports indicate that the EITC provided approximately $43.4 billion in tax credits to nearly 22.4 million low-income working families for tax year 2006. In addition, as reported by the not-for-profit Center for Budget and Policy Priorities (CBPP), census data for 2005 show that the EITC is credited for lifting 4.1 million people out of poverty, including 2.2 million children. Preliminary IRS figures for tax year 2006 indicate that in the six States of Federal Region V, over 3.4 million working families and individuals claimed approximately $6.4 billion in EITC benefits. Still, many eligible workers do not receive the credit because they are not aware of it, do not know they are eligible, or do not know how to apply. In addition, each year many new workers become eligible for the first time as they enter the workforce or due to a change in their family situation. On January 31, 2008, the IRS will sponsor an EITC Awareness Day to generate extensive media coverage on the E1TC and free tax assistance. I hope you will use that opportunity and the information and resources identified in this letter in your individual and community partnership efforts on behalf of the working families you serve.
An enclosure to this letter provides important information that you may use in helping make the EITC and other important tax benefits more accessible to low-income working families. The “Tax Benefit Information Sheet” (produced by this office) contains miscellaneous information and resources to assist you in starting up or enhancing existing efforts.
I am also pleased to inform you that the CBPP’s 2008 “Money Talks! Have You Heard? Community Outreach Kit” is now available. The kit contains many of the resources you need to conduct an effective campaign to publicize the EITC and ensure its accessibility to the families you serve. Contents include EITC posters and envelope stuffers (in English and Spanish), an EITC campaign guide, and other helpful information. A free copy of this kit may be obtained by email at eickit@cbpp.org or by calling CBPP outreach staff at 202-408-1080. Additional kits arc available at a nominal charge.
As our partner in many important efforts, I encourage you to continue your work toward bringing these available tax benefits to the attention of your program’s working families. Also, please accept my thanks for all the work you do on behalf of children and families.
Sincerely,
Joyce A. Thomas
Regional Administrator