Brooklyn Borough President

"Spread the Word" Campaign for New Child Tax Credit Refund
Kicked -Off in Bedford-Stuyvesant

Parents can receive $600 per child; Brooklyn parents could collect over $150 million
"Best government anti-poverty program in years,"
Borough President Marty Markowitz says

Brooklyn Borough President Marty Markowitz and Theresa Funiciello, founder and Executive Director of Social Agenda, a national women's policy and advocacy organization, today urged low-and-moderate-income parents to claim the newly-refundable federal Child Tax Credit.

They were joined at the Bedford-Stuyvesant Early Childhood Development Center by City Council Member James Davis (35th C.D.), by parents who are eligible for the refund, by Michelle Charles, director of the Center, and by Michael McCormick, an Internal Revenue Service official in charge of the agency's free tax return preparation assistance program in the New York region.

Today's press conference marked the kick-off of Social Agenda's "Spread the Word" campaign to publicize the credit's refundability. Because of the grass roots leadership by Social Agenda, Congress changed the law last year so that families that previously earned too little to owe taxes can now receive the Child Tax Credit through a refund check. Parents are eligible for a refund equal to 10% of their taxable earnings over $10,000 up to a maximum $600 credit per child. So a family earning $22,000 with two kids could receive a tax refund of $1,200.

Borough President Markowitz observed, "Making the Child Tax Credit refundable is probably the best new government anti-poverty program in years."

Funiciello said that if all eligible filers in Brooklyn claimed the credit for tax year 2001, total credits for the borough would come to well over $150 million and tens of thousands of Brooklyn residents would benefit. "Unless we spread the word, too many low-to-moderate income families will miss out on additional income that they are entitled to receive and desperately need," she said.

Because an additional tax form, Form 8812, must be completed and the necessary calculations are complex, many parents may wish to have help in claiming the credit. Michael McCormick, Territory Manager for the New York Region of the IRS's Office of Stakeholder, Partnership, Education and Communications, said that there are 33 sites in Brooklyn where free help is available. Two of the largest programs, with evening and weekend hours, are the VITA (Volunteer Income Tax Assistance) sites at Medgar Evers College and the Center for Family Life in Sunset Park. (A listing of free tax assistance sites and hours of operation is attached.)

McCormick also explained that since taking the Child Tax Credit reduces the amount of tax that is paid, the amount received as a refund through the Earned Income Tax Credit may also be increased.

While encouraging parents to file returns and to claim the credit by April 15th, Borough President Markowitz, Funiciello and McCormick said that parents who miss the deadline can still file late returns and that parents who already filed but did not claim the credit can file an amended return. However, parents who claim the credit by April 15th will not have to wait as long for their check as those who file late or file amended returns.

Funiciello explained that Brooklyn was chosen for the "Spread the Word" campaign kick-off because it is the seventh-most populous county in the nation and because a very high proportion of Brooklyn households are eligible for refunds. She also noted that 25 years ago in Brooklyn, Social Agenda launched a successful campaign to increase public assistance benefits.