January 25, 2013
OCC Supports Earned Income Tax Credit Awareness Day
WASHINGTON — Comptroller of the Currency Thomas J. Curry today issued the following statement recognizing Earned Income Tax Credit (EITC) Awareness Day.
EITC Awareness Day helps spread the word about a valuable tax credit available to working families and highlights where people can get free help preparing their taxes.
The EITC is a refundable income tax credit for working individuals and families who earn less than $50,270 from wages, self-employment or farming. The EITC varies by income, family size, and filing status and can be as high as $5,891. However, one in five workers and families eligible for the EITC either don't claim the credit when filing or do not file a tax return. The EITC provides a financial boost to workers and local economies and should be claimed by every eligible taxpayer.
National banks and federal savings associations around the country are commended for the work they do in their communities to promote the use of the EITC by partnering with nonprofit organizations and government agencies to:
- Promote and provide low-cost bank products and services that enable EITC recipients to directly deposit their income tax refunds.
- Sponsor IRS Volunteer Income Tax Assistance (VITA) programs in bank branches and support employees who volunteer as tax preparers in low- and moderate-income communities.
- Encourage the use of EITC refunds in bank-sponsored savings match programs, also known as Individual Development Accounts.
The OCC provides resources on the EITC at its Web site at www.occ.gov, including the Leveraging Earned Income Tax Credits to Reach New Bank Customers Fact Sheet. OCC's District Community Affairs Officers are available nationwide to provide information about this and other initiatives to national banks and federal savings associations interested in promoting the EITC in their communities.
Created in 1975, the EITC is the federal government's largest program for benefiting working families. It is a refundable tax credit for people who work but do not earn high incomes. Last year, more than 27 million taxpayers received over $62 billion in Earned Income Tax Credits, and the average EITC amounted to $2,200.