Earn It. Keep It. Save It.
A Campaign for
Working Families
Types of Tax Credits
• Refundable Credits – Taxpayer receives full
amount of credit they are entitled to, whether
or not they have tax liability.
• Non-refundable Credits – Taxpayer receives
maximum amount of credit allowed or a credit
equal to their tax liability whichever is less.
What is the Earned Income Tax Credit?
• The EITC is a federal tax credit
for working individuals
and families
• It reduces the amount
of income tax liability
• It could add hundreds
or thousands of dollars
to the income tax refund
• MD State also has an EITC.
How much is the EITC worth?
Refundable Credit for working taxpayers with Earned
Income and Adjusted Gross Income (AGI) of less than:
•$36,348 ($38,348 married filing jointly) with 2 or
more qualifying children
•$32,001 ($34,001 married filing jointly) with one
qualifying child, or,
•$12,120 ($14,120 married filing jointly) with no
qualifying children
Maximum Credit (for 2006 tax year) for
2 or more qualifying children $5,443
1 qualifying child $3,296
No children $412
EITC Qualifications
 Taxpayer must have earned income (income from
work)
 Investment income (interest, dividend income) must
be less than $2,800 or less for the year
 Taxpayer, spouse and all qualifying children must
have SSN (ITIN holders do not qualify)
 Taxpayer, spouse and all qualifying children must be
U.S. resident or resident alien for entire year
 Filing status cannot be Married Filing Separately
 Taxpayer, spouse and qualifying children cannot be
the qualifying child of another taxpayer
Telephone Excise Tax Refund
• One time refund in 2006 for reimbursement
of Federal excise taxes paid on phone bills
between 2003 - 2006
• Refund amount based on number of
household exemptions listed on tax return
• Refund amount ranges from $30 to $60
• Taxpayers who are not required to file tax
returns may also receive this refund –
simplified form available
Child Tax Credit
• Partially refundable, partially non-refundable.
• Maximum credit is $1,000 per qualifying child for tax year
2006.
• For all taxpayers with adjusted gross incomes of less than
$55,000 (may be higher based on filing status)
• Qualifying child must
– be under the age of 17 on Dec. 31, 2006
– be a U.S. Citizen, national, or resident (ITIN eligible)
– have lived with the taxpayer more than half of 2006 (183
days)
– not have provided more than half of their own support
• Special rules for divorced or separated parents
Child and Dependent Care Credit
• Non-refundable credit
• Most commonly used credit in U.S.
• Credit is for expenses paid for care so taxpayer
could work or look for work
• Person being cared for must be:
– the taxpayer’s dependent child (there are specific
definitions for dependent)
– the taxpayer’s dependent or spouse who is not
physically or mentally capable of self-care
Free Tax Preparation Sites…
1. Provide free tax preparation services:
2. Are located right in the community.
3. Are staffed by volunteers
trained by the IRS
4. Specialize in working
families’ taxes, including
Earned Income Tax Credit ...
5. Connect taxpayers to other
asset building opportunities
Baltimore CASH Campaign Sites
• 15 sites throughout Baltimore City and Baltimore County
• Eligibility:
•Slightly varies from site to site, but taxpayers earning
under $40,000 (within the EITC guidelines).
•Two sites provide low-cost services for filers who are
outside of the eligibility guidelines (Bon Secours and
EHCDC)
• Open the week of January 20, 2007
• Close from Mid-March to April 15th
• Appointments: 410-234-8008 (open Jan 2, 2007)
•Some sites allow for drop-ins. Flyer will contain details.
Money Power Day!
Money Power Day 2007 is a financial fitness fair:
•Free tax preparation – provides free tax and low-cost
preparation to clients
•Credit Café – assistance in pulling free credit reports
and receiving one-on-one counseling
•Training and education – workshops on everything
from starting a small business to identity theft
•Exhibitor Hall – opportunities to meet with financial
service professionals and other service providers to
receive on-site assistance
Important Dates to Remember
 January 2nd: CASH scheduling lines open
410-234-8008
 January 9th: Tax Credit Training
 January 20th-27th: All CASH Campaign sites open
 February 24th: MONEY POWER DAY!!!
 March 4th – April 15th: CASH Sites close down
 April 17th: Maryland and Federal Taxes Due
 Spring 07: Financial Counseling Certification Course
 Summer 07: Property Tax Credit Clinic
Year-Round Resources for Clients
Baltimore CASH Campaign
Joanna Smith-Ramani, Director
Pam Chaney, Operations Director
www.baltimorecashcampaign.org
First Call for Help (can refer to year-round tax
preparation assistance)
410-685-0525 or 211
Tax Disputes or back tax preparation
Low-Income Taxpayer Clinic
Maryland Volunteer Lawyers Service
410-547-6537
800-510-0050
Take The Money! You’ve Earned It.
This presentation is provided by the Baltimore CASH Campaign.
The Baltimore CASH Campaign pledges to:
•Promote greater awareness of the EITC among low-income families,
•Advance free tax preparation and the avoidance of unnecessary charges,
•Incorporate the use of tax refunds as part of an overall asset-building strategy, and
•Advocate for working families in the Baltimore area.
Joanna Smith-Ramani, Director
Baltimore CASH Campaign
One North Charles Street, Suite 222
Baltimore, Maryland 21201
Phone: 443-451-4079
joanna@baltimorecashcampaign.org
Pam Chaney
Baltimore CASH Campaign
One North Charles Street, Suite 222
Baltimore, Maryland 21201
Phone: 410-292-0018
joanna@baltimorecashcampaign.org