CUs Should Assist with Taxes, Educate Members on EITC, Matz Says

CHICAGO-There is more than $30 billion dollars out there in the Earned Income Tax Credit, if taxpayers only knew how to unlock it. NCUA Board Member Deborah Matz advised attendees of a recent Midwest Association of Credit Unions meeting to educate credit union members about the EITC. “The EITC is a refundable tax credit that supplements the wages of low-income working families and individuals by offsetting their income tax liability,” she explained. “This year, the program will increase the earnings of some 18 million low-income working families by more than $30 billion. It can be worth as much as $4,400 per family, depending on income and family size.” But, Matz emphasized, many eligible taxpayers do not claim the EITC. She urged credit unions to partner with the Internal Revenue Service to sponsor a Volunteer Tax Assistance site. The credit union can also reap benefits from this service. Matz pointed out it can attract new members while aiding low- and moderate-income credit union members. “Under the EITC,” she explained, “if the credit exceeds the taxes owed, the taxpayer receives a lump sum payment for the difference. And, if you help a low-income member or potential member claim their EITC payment, there’s a good chance they will deposit it in your credit union.”