Many Families Unaware of How The Government Can Help Them Financially

In the current economic downturn increasingly more families are experiencing troubles making ends meet. The worse off are extremely close to poverty and need urgently to find some help. A lot of these troubled households are not aware of all the sources of possible additional income available to them. One avenue that many people in financial trouble overlook is the Earned Income Tax Credit (EITC) which is overseen by the federal government.

Originally created in the mid seventies, the EITC program is now one of the main anti-poverty programs in the U.S. - and yet very few people know much about it or how it can help them. Every year, millions of available dollars in the program go unclaimed, even though thousands of families would qualify for the program if they knew of it. In fact, according to the IRS, many families could increase their net income by 30% by taking advantage of the Earned Income Tax Credit.

The Earned Income Tax Credit is a refundable federal income tax credit for low and moderate income working families. It was created primarily to reduce the amount of taxes paid by the working poor in an effort to help them to move towards income self-sufficiency. If a family qualifies, they could be eligible for a tax reduction as well as supplemental dollars.

The main criteria for qualifying is that the family's income must be "earned", hence the name of the program. You must be employed by a company and earn wages. In other words, if your income is based primarily on interest from investments, stock dividends, and so on, you probably do not qualify. Your qualification is also based on how many dependents you support. But, since the rules periodically change, it's best to check with a tax professional to determine if you currently qualify. Alternatively, their are websites that you can go to that contain calculators you can use to determine if you qualify for the Earned Income Tax Credit and, if so, how much.

There are additional rules as well. In fact, one of the main barriers to applying for the EITC is that through the years, the application process has become so byzantine and complex that thousands of families that do know about the program either don't try or give up in frustration after trying a few times.

But there are independent organizations out there that will help families to apply for an EITC. One such organization is the United Way. Many of their local offices will provide free tax preparation and access to the Earned Income Tax Credit and other tax credits to help working families increase their incomes and create savings.

The program is a win-win for many states as well. By taking advantage of the EITC, families are less likely to become homeless which would push the burden of caring for them to the states. In addition, the EITC helps to provide an economic stimulus to local communities. The Earned Income Tax Credit money that the homeowners receive is almost certain to be spent in the local stores, banks, restaurants, and so forth.

The EITC program can potentially be a life saver for many families that are barely surviving week to week. Even if you applied for it a year or two ago and were rejected, its worth trying again. Your circumstances may have drastically changed so that now you are eligible for the program.

Listed below are more articles related to the above article from the "Credit" article category.

People interested in the above article "Many Families Unaware of How The Government Can Help Them Financially" are also interested in the related articles listed below:

 

Erasing Bad Credit Reports - Find Out The Truth About Promises To Erase Poor Credit History

Many websites and adverts offer to wipe out bad credit reports, but what is the truth about such claims. If you have a bad credit history is it really possible to eliminate it? Find out how credit scoring works, whether you can change your score and what you can do to improve your situation.

Some Secrets About Bad Credit Lending

Someone with bad credit usually finds many difficulties when trying to get additional credit. Credit score and history has become the main variable considered when approval is in question. Nevertheless, there are ways to get approved for a loan with bad credit and knowing how bad credit lending works can provide you with some hints as regards what you need to do to get approved.

Government Grants - How To Succeed In Applying?

The government gives away trillions of dollars on free grants on a yearly basis. This means that many US citizens have enjoyed the advantages of a government grant, and many will continue to do so. Government grants cover most of the lending fields in the market, you will be able to get finance for your education, your small growing business, expensive health care and even personal use.

Getting Finance Even With Bad Credit: Is It Feasible?

This question is a common one among all the inquiries we process daily. At least half of the requests of aid we receive everyday have to do with bad credit problems. People seeking finance find it very hard to obtain financing with bad credit. Sometimes it is so hard that people think it is actually impossible to get finance with bad credit. Though it is possible to obtain finance with a tainted credit report, there are some facts that you should know...

Unsecured Lines Of Credit Instead Of Loans

Unsecured personal loans have become more and more common with the years and banks offer these loans to clients every single day for purchasing computers, furniture, going on vacations, etc. However, very few know that unsecured personal lines of credit are also available and that there are many advantages provided by this kind of loans.

Bad Credit: Let It Teach You A Lesson

Anyone can have credit problems. There are many unexpected circumstances that can lead someone to bad credit situations. The key is then to make something good out of it. Those who can benefit from negative experiences are more likely to succeed in life than those who just suffer them. In order to do this, you need to rid yourself from certain prejudices that most people who have bad credit are likely to have.

Good Credit Rating - Hold On To It

Contrary to what most people believe, the foundation of a healthy financial life is not a good credit rating. Even if a good credit standing will save you lots of headaches and will give you the key to obtaining the finance you need, it does not ensure the wellbeing of your financial situation. And what does? Habit. Not everyone can claim they are well fit when it comes down to managing their finances. A healthy financial life implies not only managing your income wisely, but also being able to save and knowing how to do so.