This bill supports the designation of January 31, 2025, as "Earned Income Tax Credit Awareness Day" to increase awareness of the EITC and other tax credits for low- to moderate-income workers. It encourages outreach to ensure eligible individuals receive these valuable tax benefits.
Terri Sewell
Representative
AL-7
This bill supports the designation of January 31, 2025, as "Earned Income Tax Credit Awareness Day" to increase awareness of the EITC and other refundable tax credits. It recognizes the EITC's positive impact on poverty reduction and local economies. The bill encourages outreach to ensure that eligible workers claim these valuable tax benefits.
Tax Credit Awareness Day Set for January 31, 2025: Millions in Refunds Could Be Left on the Table
Here's the deal: Congress is pushing to make January 31, 2025, "Earned Income Tax Credit Awareness Day." It's all about making sure folks who qualify for the Earned Income Tax Credit (EITC) actually know about it and claim it. The EITC is a refundable tax credit for people who work but don't make a ton of money.
Spreading The Word On Tax Credits
The main goal here is simple: get the word out. The bill points out that the EITC lifted about 8 million people out of poverty each year between 2017 and 2021. That's a big deal. But here's the kicker – about 20% of people who are eligible for the EITC don't claim it. That's like leaving free money on the table. This resolution calls on employers, unions, community organizations, and even state and local governments, to help spread awareness of the EITC, other refundable tax credits, and free tax filing assistance.
Real-World Impact
So, what does this mean for you? If you're working and your income is low to moderate, you might be able to get some cash back from the IRS through the EITC. Think of a single mom working as a cashier, or a young guy just starting out in construction – they could both potentially benefit. More people claiming the EITC means more money in people's pockets, which also means more money being spent in local businesses. It's a win-win.
The Bigger Picture and Potential Challenges
The EITC is already a thing – it's not new. This resolution is just about making sure more people know about it. One challenge, though, is making sure the outreach efforts are clear and accurate. People need to understand who qualifies and how to claim the credit without getting bad information. Overall, it's a solid move to help working folks get the financial boost they're entitled to, and it could make a real difference in communities across the country.