A Great Way To Assist Low Income Families

Click here for other great community leadership tips

For millions of low-income working families, the struggle to make ends meet is harder than it has to be. One way city officials can help low-income working families is by informing them of, and helping them to file for the federal Earned Income Tax Credit (EITC).

For eligible workers, the EITC offsets federal payroll taxes withheld from their pay. For the lowest-paid workers, the EITC refund amount may exceed their payroll taxes and put extra money in their pockets as an income supplement. Workers with two or more children can qualify for up to $3,888 an amount that can go a long way toward paying job-related expenses such as child care and transportation, utility bills, rent, and other costs of living.

Unfortunately, up to 20 percent of working families eligible for the EITC (and an even larger proportion of families moving from welfare to work) do not claim their EITC on their federal income tax return, or do't file a return at all. (Report from National League of Cities)