01/03/20
Action Memo
Summary:
- Notices which explain the Earned Income Tax Credit (EITC) and lists free tax counseling sites are being mailed to customers in January 2020.
- Encourage customers who were employed in 2019 to apply for EITC payments when filing federal and state income taxes.
- EITC payments continue to be exempt as an asset (resource) and income for all programs.
- Ensure that customers are made aware that there may be a delay in their refund this year. If the customer qualifies for the EITC and/or the Additional Child Tax Credit, the IRS cannot issue the refund before February 15, 2020.
- A notice will be sent to customers to inform them of a possible delay in their refund if they qualify for the EITC and/or the Additional Child Tax Credit.
Introduction
Customers who were employed in 2019 may be able to increase their income by applying for EITC payments when filing federal and state income taxes.
The Tax Season Is Here (pdf), Free Tax Help (pdf), and Plan Ahead (pdf) will be mailed to cash, medical and SNAP households in January 2020.
The notices remind customers of their possible eligibility for an EITC payment, how to apply for an EITC payment, and where they can receive free tax counseling and tax preparation services.
Customer Action
Customers who were employed in 2019 may receive the Federal EITC payment by filing for it with their federal tax return.
A person who did not apply for an EITC payment for any of the last 3 years in which he or she worked may be eligible to receive retroactive EITC payments for any or all of those years by filing an amended return.
The state income tax form asks for the amount of the Federal EITC a family is eligible to receive. The taxpayer will receive 18% of that amount as a credit to reduce the amount of state taxes owed or increase the refund amount. For the 2019 tax year, this credit will provide up to $1180.00 in state tax relief for working families who qualify for Federal EITC.
Family Community Resource Center (FCRC ) Action
The IRS provides EITC brochures and posters to the FCRCs each year in late January or early February. Use current supplies until the new ones arrive. Provide the brochures to customers as appropriate.
In every face-to-face meeting or telephone contact with customers who had any earned income in 2019, ask if they filed for an EITC. If they didn't, encourage them to do so.
Exempt EITC payments for all programs, both as income and as an asset (resource) where applicable.
Refund Delay
If a client qualifies for the EITC and/or the Additional Child Tax Credit, the IRS cannot issue a refund before February 15, 2020.
Free Tax Counseling and Preparation
Free community-based tax counseling and preparation is available to all low-income families and individuals in the Chicago area and in most larger downstate towns. A list of free tax preparation locations is shown on DHS 4039. All local and specialized work and training offices have a list of tax services available in their area. Inform customers of this when appropriate.
[signed copy on file]
Grace B. Hou
Secretary, Illinois Department of Human Services
Forms Referenced
DHS 4039
DHS 4406
DHS 4407
