EITC: money for the working poor.

• Position: Statestats - Earned Income Tax Credit

This month, millions of poor working families will be eligible for the federal Earned Income Tax Credit (EITC) when they file their income taxes. When the credit exceeds the amount of taxes owned, the taxpayer collects it as a refund.

Intended by Congress to reward work, the EITC lifts more families out of poverty every year than any other federal program. More than 21 million taxpayers collected over $36 billion in EITC payments in 2003. The average family claims $1,765.

Single parents with one child who earn less than $30,338 are eligible for a maximum credit of $2,604; families with more than one child can get up to $4,300 if their income is below $34,4S8. Research shows families use the lump sum to pay rent and utilities, create savings accounts, invest in higher education and pay off debt.

Researchers estimate that up to 20 percent of qualified workers do not claim the credit. Many do not understand that even if they don't owe taxes, they are eligible for the refund. Some $9 billion goes unclaimed each year. Many states have started campaigns to encourage low income workers to apply for the credit.

STATE CAMPAIGNS FOR TAX CREDITS

Alaska is focusing on increasing the number of current and former welfare recipients who are claiming the credit. The Division of Public Assistance is building a local network, involving businesses and schools, and using the media to advertise the benefits of the EITC.

The Delaware campaign coordinates with community organizations...