By Senator Jay Rockefeller

February 24, 2012

One of the least known but most important provisions in the tax code is called the EITC – the Earned Income Tax Credit.

With tax season on the horizon, there’s no better time to check and see if you are eligible for the EITC. But, you can’t claim the benefit if you don’t ask for it.

Why does it matter? Because the EITC puts money back into the pockets of hard-working West Virginians and makes taxes a little more fair for low-income workers. 

I’ll give you an example of why it matters. A West Virginian in Nicholas County works part-time and has to travel a long distance from her rural home to receive chemotherapy treatments.

The extra money she gets back in taxes from the EITC helps make sure she won’t miss out on bill payments or skip a needed trip to the grocery store.

In essence, the EITC is a refundable federal tax credit for low-income working individuals and families. 

You do not have to have children or be married to qualify – someone working a full-time minimum wage job may be eligible for the EITC.

Last year, almost 160,000 working West Virginians benefited from this tax credit, receiving approximately $328 million in returns to the state. The average of each credit is more than $2,000. 

In these tough economic times where wages are stagnant for low paying jobs, a tax credit like the EITC is vital and each dollar from it makes a difference.  I have seen firsthand how helpful the EITC is to working families across the state; some are using it to catch up on bills and do necessary home repairs, pay for education and job training, or just be able to make ends meet. 

At the current federal minimum wage, a full-time worker makes just below 70 percent of the poverty level for a family of four. According to the Center on Budget and Policy, even if a family of four has both parents working full-time minimum wage jobs, the family cannot move above the poverty line without receiving the EITC.

It also helps disabled West Virginians; one family in our state had struggled because the wife was working part-time to care for a completely disabled husband and young daughter.  This family made use of the Volunteer Income Tax Assistance (VITA) program to do their taxes and found out they were eligible for the EITC.  With their EITC refund, they were able to pay some debts, buy some badly needed household items, and put money away in a savings account in case of an emergency expense.

I want to encourage qualified working families and individuals to claim the EITC when they file their taxes this year, especially the 40,000 eligible West Virginians who did not take advantage of this credit last year.  Filing taxes can seem overwhelming, but there are volunteers willing to help with this through VITA – which uses IRS certified volunteers who can have your refunds direct deposited in your bank account at no additional cost. 

Free personal help in preparing your taxes will be offered in every West Virginia County from now until April 15, 2012, but you should call early for an appointment. To find a VITA site near you, dial 2-1-1 or visit www.wveitc.com. 

Don’t pay too much in taxes this year.  See if you qualify for EITC, talk to your friends, family, coworkers and neighbors about it. The EITC makes a difference, and my hope is that it will reach all who qualify this year.