To get more eligible working families to benefit from the Earned Income Tax Credit (EITC), the Office of the Comptroller of the Currency (OCC) is promoting EITC Awareness Day on Jan. 26, 2018.
“EITC Awareness Day is an important opportunity to educate the American public, and in particular, workers with and low and moderate incomes, about a valuable tax break that can help improve their family’s savings and financial outlook,” Comptroller of the Currency Joseph Otting said.
More than 25.8 million taxpayers received $63.8 billion in EITCs last year. On average, people received about $2,470. However, only 80 percent of the low- and moderate-income workers who qualify every year claim the EITC, according to the Internal Revenue Service (IRS).
The OCC is urging banks and federal savings associations to promote the EITC and free tax assistance programs to help increase the percentage of eligible workers benefiting from the tax break.
“By educating customers about the EITC, banks can help improve financial outcomes for working families and boost economic opportunities in the communities they serve,” Otting said.
The EITC, created in 1975, is a refundable federal income tax credit for low- to moderate-income workers intended to offset social security taxes. When the EITC exceeds the amount of taxes owed, a refund is given to taxpayers who claim and qualify for the credit.
In 2018, the maximum amount is $6,444 for taxpayers filing jointly with three or more qualifying children and $3,468 with one qualifying child.
The OCC is also encouraging banks and savings associations to promote low-cost bank products that enable tax refund recipients to deposit their income tax refunds directly into their accounts.