A refundable tax credit for low- and moderate income taxpayers kept nearly $3.5 million in the pockets of Poway taxpayers last year, according to the Internal Revenue Service.
The Earned Income Tax Credit (EITC) is offered to some taxpayers who earn less than $50,270 and, as a refundable credit, sometimes provides more money back to people than they paid in. Poway residents, across more than 1,950 returns, claimed $3,485,748 through the EITC, according to figures provided by the IRS.
That compares to $188 million claimed by San Diego residents, and $507 million by all of San Diego County. The credit varies by income, family size and filing status. People without children could receive a credit of up to $475; for a family with three or more children, the credit could be worth as much as $5,891. Last year, the average credit was about $2,200, according to the IRS.
The credit was originally approved in 1975 "in part to offset the burden of social security taxes and to provide an incentive to work," according to the IRS website. About 20 percent of eligible taxpayers are said to miss claiming the EITC each year.
Find out if you're eligible by using the EITC Assistant.