Free Daily Headlines :

  • COVID-19
  • Vaccine Info
  • Money
  • Politics
  • Education
  • Health
  • Justice
  • More
    • Environment
    • Economic Development
    • Gaming
    • Investigations
    • Social Services
    • TRANSPORTATION
  • Opinion
    • CT Viewpoints
    • CT Artpoints
DONATE
Reflecting Connecticut’s Reality.
    COVID-19
    Vaccine Info
    Money
    Politics
    Education
    Health
    Justice
    More
    Environment
    Economic Development
    Gaming
    Investigations
    Social Services
    TRANSPORTATION
    Opinion
    CT Viewpoints
    CT Artpoints

LET�S GET SOCIAL

Show your love for great stories and out standing journalism

State tax credit for the working poor in heavy demand

  • by Keith M. Phaneuf
  • February 13, 2012
  • View as "Clean Read" "Exit Clean Read"

More than 70,000 Connecticut households took advantage of a new tax credit for the working poor during just the first month of state income tax filings, according to the Department of Revenue Services.

The claims filed under the new state Earned Income Tax Credit were hailed both by Gov. Dannel P. Malloy’s administration and a leading private, nonprofit anti-poverty group as evidence of the new program’s necessity as well as its success.

“Higher than anticipated EITC applications show just how hard hit these families were during the recession,” Malloy said late last week.

The 70,000 households that have claimed the credit to date have qualified for approximately $49.3 million to date, according to the administration.

“This is good public policy and helping rebuild our middle class,” said Liz Dupont-Diehl, policy director for the Connecticut Association for Human Services. “We are delighted that the word is getting out about the EITC, and we’re glad Governor Malloy recognizes the power of more money in the hands of working people to stimulate the economy.  Even beyond the immediate benefit of families spending their EITC returns in their local communities is the fact that they are able to build a base for family economic success.”

Malloy and the General Assembly established the state credit last May effective in the 2011 tax year. But the first tax returns taking advantage of that credit could not be filed until January.

The new state credit is available to households eligible for the federal EITC, and is equal to 30 percent of the value of the federal credit.

Technically families earning up to $49,000 per year can qualify for a federal Earned Income Tax Credit, depending on the number of children they have. But most EITC recipients earn less than $20,000.

The average federal EITC claimed by Connecticut families over the past three years is about $1,800. Based on that number, the average state EITC — had it existed during that time — would have been $540.

Combined with the federal EITC, the maximum payment a Connecticut family can receive is $7,476.

About 190,000 Connecticut households claimed the federal EITC in 2010, and the association is projecting that more than 200,000 households will be eligible to claim both a federal and state credit on their 2011 tax returns.

The legislature’s nonpartisan Office of Fiscal Analysis estimated last spring that the state credit would cost state government $110 million this fiscal year. It was unclear Monday if the January claims would alter that projection. The deadline for filing state income tax returns for the 2011 tax year is April 15.

Though the earned income tax credit’s main purpose is to help poor families save more, advocates say a significant portion is spent on groceries, clothing and other basic needs — thereby stimulating the local economy.

“We believe it is already making a difference in residents’ lives,” Malloy said. “At the same time, it’s a real reinvestment in the state’s consumer economy.”

The Connecticut Association of Human Services is coordinating an outreach campaign to steer needy households to free tax preparation services also run by nonprofits.

The association manages a referral list of more than 40 nonprofits that provide free tax preparation services for families with annual incomes below $50,000, which would cover all EITC-eligible households, Jim Horan, the group’s executive director, said. The Infoline service run by the United Way of Connecticut, which can be accessed by dialing 2-1-1, also can refer poor families to free tax preparation services.

Sign up for CT Mirror's free daily news summary.

Free to Read. Not Free to Produce.

The Connecticut Mirror is a nonprofit newsroom. 90% of our revenue comes from people like you. If you value our reporting please consider making a donation. You'll enjoy reading CT Mirror even more knowing you helped make it happen.

YES, I'LL DONATE TODAY

ABOUT THE AUTHOR

Keith M. Phaneuf

SEE WHAT READERS SAID

RELATED STORIES
CT Democrats to propose beefed-up spending plan
by Keith M. Phaneuf

The Appropriations Committee will propose a two-year state spending plan Wednesday that bolsters municipal aid, higher education and social services.

One step Connecticut can take to address our maternal mortality crisis
by Myechia Minter-Jordan, MD

Uncertainty. Fear. Worry. These are just a few of the thoughts and emotions that run through the minds of almost every expecting parent. And for many expecting Black parents, those feelings can be more acute. That’s because for far too many, having a child is a life and death struggle.

Connecticut lawmakers on aid in dying: two decades of delay, deferral, obstruction
by Paul Bluestein, MD

Very soon, members of the Connecticut House and Senate will be voting on HB6425, - the Medical Aid in Dying bill. More than 20 years ago, Oregon implemented its Death with Dignity Act. Since then, Washington, Vermont, California, Montana, Colorado, Maine, Washington DC, Hawaii and most recently New Mexico have passed legislation authorizing medical aid in dying for terminally ill adults. But not Connecticut.

The intersection of race, class and gender in America’s childcare system: The class edition
by Georgia Goldburn

When Michelle Obama declared that she wanted to become “Mom in Chief,” she spoke to a sentiment shared by many women, i.e. the desire to be the primary caregiver of their young children in their early years. Not unexpectedly, Mrs. Obama was derided for making that choice, highlighting how society stands ready to indict women […]

A progressive income tax to re-align Connecticut’s moral compass
by Ezra Kaprov

Redistribution of wealth and property is a fundamental and missing pillar of the hope for multi-racial democracy in the United States.

Support Our Work

Show your love for great stories and outstanding journalism.

$
Select One
  • Monthly
  • Yearly
  • Once
Artpoint painter
CT ViewpointsCT Artpoints
Opinion One step Connecticut can take to address our maternal mortality crisis
by Myechia Minter-Jordan, MD

Uncertainty. Fear. Worry. These are just a few of the thoughts and emotions that run through the minds of almost every expecting parent. And for many expecting Black parents, those feelings can be more acute. That’s because for far too many, having a child is a life and death struggle.

Opinion Connecticut lawmakers on aid in dying: two decades of delay, deferral, obstruction
by Paul Bluestein, MD

Very soon, members of the Connecticut House and Senate will be voting on HB6425, - the Medical Aid in Dying bill. More than 20 years ago, Oregon implemented its Death with Dignity Act. Since then, Washington, Vermont, California, Montana, Colorado, Maine, Washington DC, Hawaii and most recently New Mexico have passed legislation authorizing medical aid in dying for terminally ill adults. But not Connecticut.

Opinion The intersection of race, class and gender in America’s childcare system: The class edition
by Georgia Goldburn

When Michelle Obama declared that she wanted to become “Mom in Chief,” she spoke to a sentiment shared by many women, i.e. the desire to be the primary caregiver of their young children in their early years. Not unexpectedly, Mrs. Obama was derided for making that choice, highlighting how society stands ready to indict women […]

Opinion A progressive income tax to re-align Connecticut’s moral compass
by Ezra Kaprov

Redistribution of wealth and property is a fundamental and missing pillar of the hope for multi-racial democracy in the United States.

Artwork Grand guidance
by Anne:Gogh

In a world of systemic oppression aimed towards those of darker skintones – representation matters. We are more than our equity elusive environments, more than numbers in a prison and much more than victims of societal dispositions. This piece depicts a melanated young man draped in a cape ascending high above multiple forms of oppression. […]

Artwork Shea
by Anthony Valentine

Shea is a story about race and social inequalities that plague America. It is a narrative that prompts the question, “Do you know what it’s like to wake up in new skin?”

Artwork The Declaration of Human Rights
by Andres Chaparro

Through my artwork I strive to create an example of ideas that reflect my desire to raise social consciousness, and cultural awareness. Jazz music is the catalyst to all my work, and plays a major influence in each piece of work.”

Artwork ‘A thing of beauty. Destroy it forever’
by Richard DiCarlo | Derby

During times like these it’s often fun to revisit something familiar and approach things with a different slant. I have been taking some Pop culture and Art masterpieces and applying the vintage 1960’s and 70’s classic figures (Fisher Price, little people) to the make an amusing pieces. Here is my homage to Fisher -Price, Yellow […]

Twitter Feed
A Twitter List by CTMirror

Engage

  • Reflections Tickets & Sponsorships
  • Events
  • Donate
  • Newsletter Sign-Up
  • Submit to Viewpoints
  • Submit to ArtPoints
  • Economic Indicator Dashboard
  • Speaking Engagements
  • Commenting Guidelines
  • Legal Notices
  • Contact Us

About

  • About CT Mirror
  • Announcements
  • Board
  • Staff
  • Sponsors and Funders
  • Donors
  • Friends of CT Mirror
  • History
  • Financial
  • Policies
  • Strategic Plan

Opportunity

  • Advertising and Sponsorship
  • Speaking Engagements
  • Use of Photography
  • Work for Us

Go Deeper

  • Steady Habits Podcast
  • Economic Indicator Dashboard
  • Five Things

The Connecticut News Project, Inc. 1049 Asylum Avenue, Hartford, CT 06105. Phone: 860-218-6380

© Copyright 2021, The Connecticut News Project. All Rights Reserved. Website by Web Publisher PRO