Earned Income Tax Credit (EITC)

The EITC Program is an important component of United Way's work toward promoting financial stability and independence.

What Is ‘EITC’?

The Earned Income Tax Credit (EITC) is a federal income tax credit available to working individuals and families. It is the nation’s largest and most effective federal aid program. Eligibility for the EITC is based on income level, marital status, and number of dependent children. As an individual or family’s earned income rises, the amount of EITC they are eligible for also rises, providing an incentive to obtain and maintain employment. The amount begins to decrease as an individual or family reaches an income level that allows them a measure of self-sufficiency.

Who Qualifies for ‘EITC’?

To claim the EITC on their 2010 tax return, individuals and families must meet the following requirements:

Their earned income and adjusted gross income (AGI) must be less than:

• $43,352 if they have three or more qualifying children ($48,362 if married, filing jointly)
• $40,363 with two qualifying children ($45,373 if married, filing jointly)
• $35,535 if they have one qualifying child ($40,545 if married, filing jointly)
• $13,460 if they have no qualifying child ($18,470 if married filing jointly)

How United Way Helps

Recognizing EITC’s potential impact in helping individuals and families become financially stable, United Way of Northern Nevada and the Sierra plays a key role in promoting EITC in northern Nevada.  The money returned to eligible taxpayers through EITC is critical in helping them meet basic needs and achieve a level of financial stability which in turn benefits the local community.

UWNNS participates in a regional coalition (made up of several public and private organizations) called Earn It Keep It Save It Northern Nevada.  Nationally, United Way’s capacity for partnership-building is particularly well-suited to EITC outreach and free tax preparation efforts.

Questions?  Contact Karen Barsell, 775-333-8264.