Congressman Dennis Cardoza
18th Congressional District of California

“Many Valley residents are simply not aware that the Earned Income Tax Credit exists and are forfeiting a sizeable tax savings,” Cardoza said.  “The program was designed as a powerful incentive to keep low-income Americans off welfare and in the workforce, so it’s important that we make it work by reminding people that it exists.”

A 2004 study by the Brookings Institution found that a high percentage of Central Valley residents – in some areas more than 40 percent – are eligible for the EITC, but that as many as 20 percent of those eligible do not file EITC claims on their tax forms.  As a result, millions of dollars that should have gone back into the pockets of working families in recent years has instead remained in government coffers.

New data shows that in Cardoza’s district alone, 62,455 filers – 25.6 percent of tax returns submitted to the IRS in 2002 – claimed the EITC, but thousands more were eligible.

Congress enacted the EITC in 1975 with bipartisan support.  Its broad appeal stems from the fact that it rewards those who choose to work low-wage jobs instead of benefiting from welfare programs. 

Credit amounts and eligibility depend on total income, earned income, family size, and other factors.  Cardoza has a feature to his web site that enables constituents to determine whether they are eligible and how much of a tax credit they should receive.  The estimator is available at www.house.gov/cardoza/eitc.shtml.

Tax forms can be obtained at any of Cardoza’s district offices.