The report found that in tax year 2006, low-income families lost $3.1 billion of their Earned Income Tax Credit (EITC)
benefits to high-interest, short-term loans, tax preparation fees and other financial products issued by commercial tax preparers.
The EITC, a refundable federal tax credit for low- and modest-income workers, is one of the most effective tools for lifting
families out of poverty. According to the Center on Budget and Policy Priorities, the most recent estimates show that the
EITC lifted 4.4 million low-income Americans out of poverty—including 2.4 million children. The benefits of
the EITC are far-reaching. They help families make ends meet during tough economic times, improving children's well-being,
and significantly benefiting our economy and community as a whole.
Visit the CDF website to:
- Download the report.
- Find out how much your city, county or state has lost to predatory commercial tax preparers.
- Find out if you are eligible for the EITC.
- Locate a free tax preparer site near you (including this weekend's "Super Saturday" locations).
- Learn how individuals, communities and policy makers can step up and take action.