ALEXANDRIA, Va. (2/15/13)--Credit unions providing tax assistance services should be mindful of the Earned Income Tax Credit (EITC) for certain, qualified taxpayers, the National Credit Union Administration reminded Thursday.
For the 2012 tax year, the EITC can return up $5,891 to eligible taxpayers, helping to improve the financial situation of low- to moderate-income families, the agency said in a release.
The EITC was created in 1975 as a means to offset the burden of Social Security taxes. The tax credit is intended to help low- and moderate-income families cover living expenses, rebuild their savings or invest it in their local communities.
NCUA Chairman Debbie Matz said, "We hope credit unions that have members who qualify for the credit will carry this message, especially those credit unions that participate in NCUA's Volunteer Income Tax Assistance (VITA) Initiative."
Under the VITA Initiative, NCUA has provided 2012 grants up to $25,000 to credit unions starting or expanding their tax assistance programs. The funds are used to offset the administrative and operational costs associated with these services.
The NCUA reported that during the 2011 tax session, credit unions that participated in the VITA program completed 23,979 tax returns and returned $13,961,738 in EITC to their members.
Use the resource link for more information on the EITC.