8. Money Talks! Have you heard? Claim the Earned Income Credit Presentation by: John Wancheck Organization: Center on Budget and Policy Priorities Outreach Kit! www.cbpp.org/eic2008 Phone: (202) 408-1080 Email: [email_address]

10. The EIC: Making a Difference Helping working families out of poverty, 2007 Full-time Minimum Wage Job* (less withholding) $10,805 Full-time Minimum Wage Job* (less withholding) $10,805 Food Stamps $1,812 Food Stamps $1,812 EITC $2,853 Without EIC With EIC Annual Income Estimated Poverty Line for Family of Two (including one child) $14,159 109% 89%

12. $0 $1,000 $2,000 $3,000 $4,000 $5,000 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 Credit Amount The Federal Earned Income Credit in Tax Year 2007 Maximum benefit $4,716 Note: Married couples with income in the phaseout range qualify for a higher credit than single parents — shown by dashed lines. Maximum benefit $2,853 Maximum benefit $428 $40,000 Two or more children No children One child

13. EIC Benefits for Tax Year 2007 at Various Income Levels Note: This is not a tax table. Do not use this table to complete income tax returns. $3,740 $2,112 $0 $20,000 $4,582 $2,751 $0 $16,000 $4,716 $2,853 $0 $14,000 $4,716 $2,853 $43 $12,000 $4,010 $2,853 $196 $10,000 $3,210 $2,729 $349 $ 8,000 $2,010 $1,709 $384 $ 5,000 EIC for single workers raising two or more children EIC for single workers raising one child EIC for single workers not raising a child 2007 household income

15. Definition of a “Qualifying Child” Age Residence Relationship Under 19, or under 24 if full-time student, or any age if totally and permanently disabled Must live with worker in the U.S. for more than half the year Son, daughter Stepchild, adopted child, grandchild Brother, sister, stepbrother, stepsister (or their descendents) Foster child placed by a government or private agency EIC