PathWays PA Policy Blog

In partnership with CFED and the Assets and Opportunities Network , PathWays PA is asking for signatures to a sign-on letter regarding an amendment to the Tax Fraud and Identity Theft bill. This amendment would help regulate the tax preparation industry and prevent unscrupulous tax preparers from preying on low- and moderate-income taxpayers’ hope for a large—and quick—refund. Please use this form to read the letter and sign on by Monday, and feel free to share it with your partners.

For Immediate Release One in Five Workers is Leaving Money on the Table! PathWays PA can help workers get their taxes done for free at VITA sites throughout the region – and will be announcing a special VITA site later in the week! EITC Awareness Week Events: 1/26 – PathWays PA releases list of local VITA sites online 1/27 – PathWays PA promotes DelcoAD VITA sites online 1/28 – PathWays PA makes special announcement about VITA Supersite 1/29 – PathWays PA holds EITC Awareness Twitter Storm from 10 – 11 AM (sample tweets/images available here ) www.pathwayspa.org / pathwaysvita.com / @PathWaysPA / @PathWaysPolicy #EITC Workers can get a larger tax refund this year because of the EITC (Earned Income Tax Credit) – but one in five eligible workers don’t know about it! During EITC Awareness Week, PathWays PA will share information daily to help spread the word about the EITC and how we can help workers access the money they’ve earned. In 2015, 27.5 million workers recei...

EITC Awareness Day is next week, and you're invited to join us for a Twitter Storm to celebrate! The Earned Income Tax Credit (EITC) is a federal tax credit. It reduces or eliminates taxes for workers under a certain income, and in many cases actually gives them money back! Here's a few more facts: For the 2014 tax year 27.5 million taxpayers received about $66.7 billion in EITC  The average amount of EITC received nationwide last year was more than $2,400  EITC is for workers whose income does not exceed the following limits in tax year 2015:  $47,747 ($53,267 married filing jointly) with three or more qualifying children  $44,454 ($49,974 married filing jointly) with two qualifying children  $39,131 ($44,651 married filing jointly) with one qualifying child  $14,820 ($20,330 married filing jointly) with no qualifying children  Investment income in all cases must be $3,400 or less We'll be online sharing information from 1-2 PM on Fri...

Congress is making decisions about tax reform and they have an opportunity to make working families a priority. Ask Congress not to shift more of the tax burden to parents and away from the very wealthy . They can do this by strengthening the EITC and CTC. Both tax credit programs significantly reduce the number of children living in poverty, and help working parents make ends meet and save for the future. There were significant improvements made to both of these tax credits in 2009 as part of the economic recovery package. Combined, these improved credits are currently helping 13 million households and over 26 million children. These tax credits are also stimulating our economy. Congressional focus on tax reform right now offers a key opportunity to make sure these improvements are extended permanently and no harmful cuts are made.

The Center on Budget and Policy Priorities  has examined how the EITC and CTC programs are utilized by veterans. With Congress considering overhauling the tax code this year, it’s worth noting that about one in four current or former armed forces families with children receive the Earned Income Tax Credit (EITC) and the low-income piece of the Child Tax Credit (CTC) — two key tax credits for low- and moderate-income working families. The Census and IRS numbers that our friends at CBPP examined show significant use of the tax credits by veterans. Nationally, 1.5 million military families receive one of the credits, according to our analysis of Census Bureau and Internal Revenue Service data. In about 280,000 of these families, a parent now serves in the armed forces; in the rest, a parent is a veteran. Pennsylvania alone has 48,000 veterans and armed forces families with children that receive the EITC or low-income component of the Child Tax Credit annually. ...

More than 100,000 children in PA are lifted out of poverty each year by the federal Earned Income Tax Credits and Child Tax Credits (EITC and CTC). The Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC) help working families make ends meet by both rewarding work and recognizing the additional expenses of raising children. These tax credits have a strong history of bipartisan support and have been praised and expanded by Republican and Democratic administrations alike. The EITC and CTC have an incredibly beneficial impact for children, families and the economy. Protect these essential tax credits and ask that 2009 enhancements to the credits be made permanent by adding your name to our sign-on letter. Read the letter and add your name.  For more information about the 2009 enhancements and the economic impact of these credits in Pennsylvania, check out PCCY's fact sheets.

As Congress debates a plan to reduce the deficit, one thing is clear - deficit reduction should not fall on the backs of low-income working families. Yet that is exactly what happened in a budget passed by the U.S. House of Representatives on March 21. The House plan makes a number of changes to the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) that could end up costing working families billions. The EITC and CTC help working families make ends meet by both rewarding work and recognizing the additional expenses of raising children. Together, the credits bring $3.6 billion into Pennsylvania's economy each year. Nearly 900,000 families benefit from the EITC and 1.5 million from the CTC. Sign onto the letter supporting EITC. Follow "EITC Helps me" on Facebook

PathWays PA's Self Sufficiency team wants to remind you to take advantage of our free tax preparation service. Our basic tax preparation service provides free tax filing for households whose income does not exceed $51,000. We also want to reach tax filers who are disabled or who do not speak English as their first language. Our goal is help tax filers access their Earned Income and other tax credits. We are offering a number of service locations , including SEPTA's Suburban Station where you can drop off you tax forms to be done while you are at work, or you can make an appointment .

As many of you have heard, the "fiscal cliff" has been averted following House passage of a Senate bill to prevent large cuts in spending and large tax increases. Details of the bill are still emerging, but here is what we have seen so far: Income Tax Rates : Income tax rates will increase for single workers earning more than $400,000 and families earning more than $450,000.   Income tax rates in this bill will be considered "permanent," as opposed to the Bush tax cuts of 2001, which were considered temporary.   Payroll Taxes : Payroll taxes will increase for workers at all incomes, with the Social Security tax returning to 6.2% on a worker's first $113,700 in wages.  This tax was temporarily set at 4.2% two years ago. For a worker earning the national average of $41,000, this increase comes to about $32 more per biweekly paycheck. ( Here is our Facebook post describing payroll taxes .) Tax Credits : There will be a five year extension of the tax credits...

Federal Policy Updates  HELP SUPPORT THE CHILD TAX CREDIT AND EARNED INCOME TAX CREDIT Congressman Richard Neal is introducing a bill to continue the Child Tax Credit and the Earned Income Tax Credit in their current form for another year. In 2010, the Child Tax Credit and Earned Income Tax Credit together lifted 9.2 million people out of poverty, including 4.9 million children. The improvements now scheduled to expire kept 1.6 million of these people out of poverty. For more information, see the Center on Budget and Policy Priorities' Studies Show Earned Income Tax Credit Encourages Work and Success in School and Reduces Poverty .  Organizations that support these program are being asked to show your support. All you have to do is to send an email to one of the following people by noon, Tuesday, July 17, saying that your organization (local, state, or national in scope) can be listed in support. Email Adam at Larose@cbpp.org or Stuart at Russell@cbpp.org . St...

With just a few minutes to spare on Saturday night, Governor Corbett signed the budget for the 2012-2013 Fiscal Year, which began on Sunday, July 1.  You can find a final copy of the budget at  http://www.portal.state.pa.us/portal/server.pt/community/current_and_proposed_commonwealth_budgets/4566/ . Also, the Pennsylvania Budget and Policy Center will be holding a phone call next week to discuss the budget. Pennsylvania Budget and Policy Center Budget Phone Call July 9, 2012 10 AM Conference line: (760) 569-7676; Code: 453547 Even though the budget debate is over, there are plenty of issues to take action on. Please take a moment to make calls, write emails, and provide overall support for the issues that matter to you. Even though the budget debate is over, there is more you can take action on.  Please check out these links for more information: Elimination of General Assistance Delayed Until August 1 Outreach for the Earned Income Tax Credit Marc...

Earned Income Tax Credit outreach initiatives throughout the state, including our work at PathWays PA, are at risk of losing their funding from DPW in this fiscal year. These initiatives are not line items in the state budget, so we do not yet know the final funding determination. Over 2000 families filed returns just with PathWays PA this year, giving them access to free, IRS-certified tax services, financial literacy tools, and quick refunds without paying high interest fees. Please call your legislator to ask for their support on the Earned Income Tax Credit. You can find their contact information at  http://bit.ly/wjYINY . You can use the following language: "Outreach around the Earned Income Tax Credit, a program for working families, is at risk in the Department of Public Welfare. Will Senator/Representative X call or write to Secretary Alexander asking for the continuation of the program?" You can write a letter in support of the program or visit here to ...

By now, many of you have heard that a spending number has been set in Harrisburg for the 2012-2013 budget.  What remains to be seen is how the $27.66 billion will be spent.  Here is what we've been hearing: Rumors are that public schools and state universities will be funded at the same level as they were last year . The Educational Improvement Tax Credit may double from $75 million to $150 million. Erik Arneson, a spokesperson for Senate Majority Leader Dominic Pileggi, said the budget will return some spending to K-12 and higher education, accountability block grant funding and county human services programs, as well as some additional funding for distressed school districts . As of now, General Assistance remains zeroed out in the state budget .  At this point, it is likely that if the program is not funded, most recipients will not learn of the funding cut until they get a letter in the mail in place of their July check. The Pennsylvania Budget and Policy Cent...

EITC outreach initiatives throughout the state, including our work at PathWays PA, are at risk of losing their funding from DPW in the upcoming fiscal year. Over 2000 families filed returns just with PathWays PA this year, giving them access to free, IRS-certified tax services, financial literacy tools, and quick refunds without paying high interest fees. Please take a moment to write to Secretary Alexander and to your legislators about the need for Earned Income Tax Outreach funding .

Last week PathWays PA Kicked Off our FREE tax services for this year.  Below are videos taken from the event. Lyn Kugel from PathWays PA discusses the FREE tax services and how you can contact us to set up an appointment. Philadelphia Councilman Bill Greenlee came out to support PathWays PA and inform the public about our services.

PathWays PA’s Self Sufficiency team wants to be sure that you are aware of our free tax preparation service. Our basic tax preparation service is designed to provide FREE tax filing for households whose income does not exceed $50,000. We also want to reach tax filers who are disabled or who do not speak English as their first language. Our goal is help tax filers access their Earned Income and other tax credits. In addition, this year, PathWays PA is offering Tax Counseling for the Elderly, featuring free tax preparation for Senior Citizens without the income constraint. PathWays PA is offering free tax preparation service at a number of locations. Our locations and hours are detailed below. If you or someone you know would like to have taxes prepared by the Self Sufficiency team, please call to schedule an appointment PathWays PA has stationary sites in Philadelphia and Delaware Counties Philadelphia Women in Transition 21 South 12th Street, 6th Floor Philadelphia, ...

Did you know that there are a number of locations in our community where low- and moderate income people can get help filing their taxes at no cost? The Volunteer Income Tax Assistance (VITA) program, which is funded in part by the IRS, offers free tax help to people making less than approximately $50,000 a year. In addition to receiving much-needed tax help, families will also learn about important tax credits that they may be missing out on. The Earned Income Tax Credit (EITC) is a tax credit especially for low-income working families. It helps workers keep more of the money they earned, which helps families pay their rent and buy groceries or new shoes for their kids. The amount of your EITC refund depends on things like income and family size, but many families receive rebates of a couple thousand dollars – make sure you don’t miss out on your refund! If you didn’t claim the EITC in the past, you may also be able to file amended claims and receive more of the money you’ve...

From our friends at U.S. Department of Health and Human Services Administration for Children and Families Last year, over 26 million people nationwide received nearly $59 billion in EITC. The EIC has a big impact on families with children as last year 6.6 million people, 3.3 million of them children, were lifted out of poverty last year due to EITC. While these are impressive numbers, the IRS estimates between 20% and 25% of those eligible for the credit do NOT claim it. Are you eligible to claim EITC for 2011 taxes? Must have earned income in 2011 Must have a valid Social Security number Investment income limited to $3,150 Generally, must be a U.S. citizen or resident alien all year Cannot use “married filing separate” filing status Cannot be a qualifying child of another person Cannot file Form 2555 or 2555-EZ (related to foreign earned income) If you meet these rules, your earned income must also be less than . . . $13,660 ($18,740 if married filing jointly) wit...

Delaware County, PA - On Friday, January 27, DelcoAD will host a press conference and outreach event to promote Earned Income Tax Credit awareness and kickoff the 2012 tax filing season. The event will be held in the main lobby of Upper Darby's 69th Street Terminal from 1:00pm - 2:00pm and will include remarks from Mayor Micozzie, Pennsylvania State Representative Davidson, IRS Pennsylvania Territory Manager Jim Daugherty and PathWays PA President and CEO Carol Goertzel. It will also mark the opening of DelcoAD's ten Volunteer Income Tax Preparation sites, where Delaware County residents earning less than $50,000 annually can receive free tax preparation. National EITC Awareness Day, on January 27 of this year, is a nationwide effort to raise awareness of and access to the Earned Income Tax Credit, one of the largest and most effective anti-poverty tools in the United States. Millions of workers each year overlook the federal tax credit simply because their earnings do n...