Officials Promote Underused Tax Break For Working Poor

With tax season well underway, there’s a push by Wisconsin officials for low-income workers to apply for the earned income tax credit. It’s estimated that 25,000 Wisconsin residents are eligible, but don’t apply.

The earned income tax credit is designed to help the working poor. People can get the credit even if they don’t make enough to pay taxes.

State Rep. Daniel Riemer, D-Milwaukee, said the extra money can be vital for necessities.

“An additional $1,000 or $2,000 on their tax refund is one of the ways that they can catch up on rent if they may have fallen behind on,” said Riemer. “It puts them over the edge in case their car breaks down, which is really their lifeline to a job.”

According to estimates, residents in Milwaukee County could get $64 million from the earned income tax credit. Statewide, it’s estimated more than $230 million will be lost if eligible workers don’t apply. These figures come from the Brookings Institution.

Citizen Action of Wisconsin is using the numbers to promote the credit. Milwaukee city and county officials are also trying to do this by providing information on buses and in health clinics.

There is both a federal and state earned income tax credit. The former can be as high as $6,000. The state credit can reach $2,100. Credits vary by income and number of children.