Uncollected Tax Credits
Millions of American families who are eligible for the EITC do not receive it, leaving billions of additional tax credit dollars unclaimed. Research by the Government Accountability Office (GAO) and Internal Revenue Service indicates that between 15% and 25% of households who are entitled to the EITC do not claim their credit, or between 3.5 million and 7 million households.
Many nonprofit organizations around the United States, sometimes in partnership with government and with some public financing, have begun programs designed to increase EITC utilization by raising awareness of the credit and assisting with the filing of the relevant tax forms.
The state of California requires employers to notify every employee about the EITC every year, in writing, at the same time W-2 forms are distributed.
Read more about this topic: Earned Income Tax Credit (US)
Famous quotes containing the word tax:
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—Ralph Waldo Emerson (1803–1882)