For the eighth consecutive year, the Sacramento County Department of Human Assistance (DHA) is partnering with the Internal Revenue Service (IRS) to provide free tax assistance for low and moderate-income working families, many of whom are entitled to the Earned Income Tax Credit (EITC).

EITC is a refundable tax credit for people who work, but don’t earn high incomes. It is in addition to any refund they may already receive. In most cases the EITC does not affect eligibility for benefits like food stamps, cash assistance, Medi-Cal, SSI or subsidized housing. If they qualify, eligible taxpayers could pay less federal tax, no tax or even get a tax refund from the IRS.

INDEX

County programs are designed to help welfare recipients prepare for and get jobs as well as provide supportive services and work incentives that will help them stay employed. Increased emphasis on welfare to work programs has prompted Sacramento County to build new relations with businesses and partnering agencies.

The IRS estimates that millions of dollars in credits go unclaimed each year simply because eligible taxpayers don’t apply. Approximately 24,000 Sacramento County families are potentially eligible for EITC.

INDEX

The overwhelming success of the program prompted Sacramento County to expand the number of Volunteer Income Tax Assistance sites. The service is offered at County welfare offices throughout Sacramento County, Sacramento Employment and Training Agency (SETA) Career Centers, and the City of Sacramento.

In addition to the increased number of sites, DHA also established an EITC hotline number (916-874-2072) for tax filers to call to help identify which site in his or her neighborhood would be most convenient.

INDEX

In the first year of the partnership, the IRS trained 40 Sacramento County employees who prepared and electronically filed nearly 700 tax returns claiming nearly $1M in refunds. Since the beginning of the program, more than 450 Sacramento County employees have been trained to electronically file tax returns and help taxpayers apply for the EITC.

Over the last seven years, DHA and partner agency staffs have prepared more than 18,500 tax returns. The total EITC dollar amount claimed was over $20.6M, and total state and federal income tax refunds returned was $25M.

INDEX

To claim EITC, the tax filer, his or her spouse, and qualifying children must have a valid Social Security Number. Tax filers cannot qualify if their SSN states NOT VALID FOR EMPLOYMENT. Individual Taxpayer Identification Numbers (ITINS) and Adoption Taxpayer Identification Numbers (ATINS) are also ineligible for the credit.

Please note: Tax refunds do not affect eligibility for public assistance, in most cases. DHA is not certified to prepare self-employment or amended returns.

INDEX

For a list of DHA locations preparing tax returns, call (916) 874-2072 after January 29, 2007.

For more information call:

Mayra Pineda, Human Services Supervisor

(916) 875-8228

e-mail: Pinedam@saccounty.net

INDEX