Although the credit has been available since 1975 in various amounts, it remains an often-overlooked benefit.

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From the article:

Nearly one-fifth of families who qualify for thousands of dollars in tax credits are not taking advantage of the program, leaving behind more than $300 million in Los Angeles County each year, said LA Mayor Antonio Villaraigosa on Monday.

As part of an annual awareness campaign, Villaraigosa encouraged low- and moderate-income households to use the Earned Income Tax Credit.

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Los Angeles City Councilmember Richard Alarcón today hosted a presentation to his City Council colleagues to recognize “Earned Income Tax Credit (EITC) Awareness Day.”  The EITC is a federal income tax credit that reduces the tax burden for low-income working households.  The program, when combined with the Child Tax Credit, can result in as much as $6,000 in tax refunds per household.  The credit often goes unclaimed, however, as many people are not aware that they are qualified to receive additional money back from the government.  Each year, roughly $1 billion of EITC credits goes unclaimed in California and more than $300 million is left unclaimed in Los Angeles.

“The money people can get from this tax credit can make a real difference, both in people’s lives and in our City’s economy,” said Councilmember Alarcón.  “More than $300 million that should have been claimed by people in Los Angeles is left untouched each year, which means that Los Angeles doesn’t see an estimated half-billion dollars of economic boost from the tax credit.  This isn’t only a missed opportunity for families who need help; it is also a missed opportunity for Los Angeles.”

Councilmember Alarcón was joined in Council Chambers on Friday by Connie Stewart, the Los Angeles Manager of the IRS Stakeholder Partnerships, Education and Communication (SPEC) Division, the City’s Community Development Department (CDD) General Manager Richard Benbow, the Center for Asset Building Opportunities EITC Campaign Coordinator Marco Ramirez, the United Way of Greater Los Angeles Director of Economic Development Marguerite Womack, and the Office of State Controller John Chiang during today’s City Council meeting.  The group discussed the importance of the tax credit and how they were working together to help ensure people are aware of resources available to help as they prepare their taxes.

CDD, for instance, is operating Volunteer Income Tax Assistance (VITA) sites at every Family Source Center in Los Angeles.  Last year, CDD’s second year as a Family Source system, the Department’s centers provided free tax preparation services to more than 4,500 city residents and helped the families they served access more than $4.2 million in State and Federal returns, including $1 million in the EITC.

The VITA Program offers free tax help to moderate-income and low-income households. Certified community volunteers receive training to help prepare basic tax returns. IRS maintains quality control of VITA volunteer certification and sites. In addition to free tax return preparation assistance, most sites also offer free electronic filing (e-filing).

Councilmember Alarcón has been a long-time advocate in helping raise awareness of the EITC.  Last year, the Councilmember announced that approximately 46,000 EITC notices were mailed to residents in California (nearly 13,000 to LA County residents) to notify people that they may be eligible to claim the EITC and could receive thousands of dollars back from the government. More than $8 million in new EITC dollars were claimed by households as a direct result of the mailing.

“EITC is a financial boost for working people in a recovering economy and allows more funds to flow within your community.  It is money that can make lives a little easier,” Councilmember Alarcón said.

Thank you again to all the volunteers for both the Community Tax Day and the Community Resource Fair!

Thank you again to all the volunteers from the Community Tax Day at AVPH. Together, we helped 38 families claim over $65,000 in total refunds in just under 6 hours! Great job everyone!

Thank you again to all the volunteers from the Community Tax Day at MEND. Together, we helped 32 families claim over $52,000 in total refunds in less than 5 hours! Great job everyone!

At this City Council Meeting, a resolution was also unanimously passed by the Councilmembers to declare Saturday, February 6, 2010, as “LA EITC Awareness Day,” which coincided with the Partnership’s Community Tax Day in Pacoima, CA. Please continue on to read our post on the Pacoima Tax Day.

A big congratulations to David Rattray, Alma Salazar, and their entire Cash For College team on their very successful Super Saturday, which took place on January 30th, 2010. During their Super Saturday, they were able to help thousands of college-bound students from high schools throughout LA County complete their FAFSA applications. This is such an important campaign that assists so many students in realizing their dreams of further education and a better future. To learn more about the LA Cash For College campaign, visit their website at www.lacashforcollege.org