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Re: Giving Up on the Advanced Earned Income Tax Credit
by
Anonymous
Yes - it's too early to give up on the Advance Earned Income Tax Credit or AEITC. The GAO study left many unanswered questions. For one, the IRS could do much more to publicize AEITC so that individuals have specific knowledge whether they qualify for AEITC. For example, at www.eitc.irs.gov, there's an EITC calculator, which allows taxpayers to calculate EITC. Why hasn't the IRS included an AEITC calculator???? Also, why can't individuals apply for AEITC using a w-4 rather than a separate W-5 that no one has easy access to? The GAO study did not address any of these issues.
AEITC means more money for recipient families - it reduces the need for families to rely on expensive credit. It also offers families the opportunity to save on their own, pocketing the interest.
Giving up on AEITC is bad policy. Low-income families and advocacy groups should unite to fight this.
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