PACES Project Francisco Gallegos MPA PACES Project Coordinator

PACES Project Francisco Gallegos, MPA PACES Project Coordinator

PACES Project Preventing ACEs through Collaboration and Economic Supports • Adverse Childhood Experiences (ACEs) • Three-year grant funded initiative • Multi-sectorial partnership between Foundation Communities, United Way ATX and Child and Family Research Partnership (CFRP)

PACES seeks to: • Build awareness of EITC/CTC • Increase access to tax credit • Study the impact of tax credits as a protective factors against ACE's • Target working parents of color with young children in Austin's Eastern Crescent

Earned Income Tax Credit (EITC) • The EITC is one of the largest federal income support programs • The EITC has moved 5. 6 million people out of poverty, including 3 million children • In Texas, the average EITC amount received was $2, 7363 • 1 in 5 five people who could get the EITC credit don’t claim it 4. Leaving billions of dollars unclaimed!

How does EITC work? • Help eligible families keep more of the money they earn by reducing the taxes they owe • Recipients receive a credit equal to a fixed percentage of earnings up to a maximum credit. The credit and maximum rates is dependent on • Marital status • Earned income • Number of dependent children in household

Basic EITC Qualifying Rules: • Show proof of earned income • Have a valid Social Security Number • Claim a certain filing status • Be a U. S. citizen or a resident alien all year • Have investment income below $3, 650 in the tax year you claim the credit

Current Tax Year EITC Income Guidelines Single Workers with Incomes less than: Married Workers with Incomes less than: Number of Children EITC Amount Up To: Claimed as Dependents: $15, 820 $21, 710 0 $538 $41, 756 $47, 646 1 $3, 584 $47, 440 $53, 330 2 $5, 920 $50, 954 $56, 844 3 $6, 660 Source: November 14, 2020, Get It Back, https: //www. eitcoutreach. org/blog/how-much-are-the-eitc-and-ctc-worth/ EITC Income Investment Limit = $3, 650

American Rescue Plan Reform - EITC • The max amount for a single person without kids was increased from $540 to $1, 500. • The eligibility age was reduced from 25 to 19.

American Rescue Plan Reform – Child Tax Credit • The ARP made 17 year-olds eligible as qualifying children for the Child Tax Credit (CTC). • Increased the amount of the credit to $3, 000 per child ($3, 600 for children under 6).

The "Look Back" Provision • For filers that earned less in 2020 compared to 2019, they can use their 2019 OR 2020 earned income to calculate their EITC. • If eligible, enter in both years to determine the refund. • Choose the year that provides the larger refund.

Prosper Center Tax Help Program • Began more than 15 years ago and continues as a trusted provider of free tax preparation • Prepares 20, 000+ returns per year, helping families claim more than $30 million in refunds • Before the pandemic, operated at 6+ tax sites during tax season, including two Foundation Communities Prosper Centers • During the pandemic, launched a virtual platform to continue providing same high-quality tax prep while unable to provide in-person support

How can our community help? • Serve as a venue for EITC/CTC awareness campaigns • Refer clients to FREE tax preparation services • Encourage front-line staff to undergo ACE's/EITC training • Spread the word!

For more information Francisco Gallegos, MPA PACES Project Coordinator Francisco. Gallegos@uwatx. org Gaby Mordi, MSSW PACES Project Manager gabriela. mordi@foundcom. org

References • 1. IRS. (2020, December). Statistics for Tax Returns with EITC. https: //www. eitc. irs. gov/eitc-central/statistics-fortax-returns-with-eitc/statistics-for-tax-returns-with-eitc. • 2. CDC Foundation. (2020, May). Earned Income Tax Credit (EITC) Public Health Action Guide. https: //www. cdcfoundation. org/sites/default/files/Public. Health. Action. Guide_EITC. pdf.