Local Earned Income Tax Credit Checks To Be Mailed July 31

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Contact: Donna Bigler, 240-777-6537

For Immediate Release: July 28, 2000

Local Earned Income Tax Credit Checks
To Be Mailed July 31

Refund checks will soon be on the way to nearly 12,000 of Montgomery County's working poor. The checks, which will be mailed July 31, are for the local refundable Earned Income Tax Credit (EITC) - a program that became law last October, making it the first local EITC in the nation.

The EITC is a major component of County Executive Douglas M. Duncan's comprehensive "Rewarding Work" proposal, which includes a broad-based set of initiatives and services to assist low wage earners with the childcare, health care, housing, job training and transportation that they need to get and keep a job.

"No one who works full time and supports a family should be poor," said Duncan. "The earned income tax credit puts dollars directly into the pockets of the people who need the most help, and it offsets or eliminates completely the local tax burden on working families struggling to make ends meet."

"The earned income tax credit is one of the most important tax breaks low income workers can find on their federal and Maryland tax returns," said Comptroller of Maryland William Donald Schaefer, whose office administers the Montgomery County earned income tax credits. "We've heard many stories about how the credit has made a difference in the lives of many working families. That's why I applaud Montgomery County's refundable earned income tax credit as a key part of County Executive Douglas Duncan's 'Rewarding Work' package. It will go a long way to help make life better for thousands of deserving county residents."

In addition to the federal earned income tax credit, the State of Maryland provides a credit that is based on 10 percent of the federal EITC for tax year 1999 minus the gross state tax. The rate will increase to 15 percent in tax year 2000. The County's program provides eligible taxpayers with a local refund that generally matches the amount they receive through the Maryland Earned Income Credit. For the current tax year, however, the Montgomery County Council increased the local refund by 25 percent.

"The Council is pleased to have passed the earned income tax credit this year. It will serve as a bridge until the state takes action next year," said County Councilmember Isiah Leggett. "I believe that this will go a long way in helping the less fortunate of our County."

The EITC refund checks for tax year 1999 will go to 11,587 eligible residents, with checks averaging $220. Once the State refundable portion is fully phased in, refund checks will average $330. The program will cost the County $2.7 million this year.

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