Free Tax Preparation Helps Families Claim EITC

Working families who earned up to $50,000 in 2009 and may qualify for the Earned Income Tax Credit are eligible for free tax preparation services, including electronic filing and direct deposit, now through April 15.

As part of its commitment to helping working families become more financially stable, United Way of Central and Northeastern Connecticut is supporting Volunteer Income Tax Assistance (VITA) sites in Hartford, Manchester, East Hartford, New Britain, Enfield and Willimantic in partnership with the Bank of America Charitable Foundation and the Walmart Foundation. IRS-trained volunteers will help families prepare and electronically file their state and federal income tax forms and determine whether they qualify for tax credits and refunds, including the Earned Income Tax Credit. Most VITA sites offer tax assistance in Spanish.

The Earned Income Tax Credit, worth up to $5,657, is a federal income tax credit available to individuals and families that earned up to $48,279 in 2009. Eligibility is based on income, marital status and number of children. As an individual or family’s earned income rises, the amount of EITC they are eligible for also rises, providing an incentive to obtain and maintain employment. The amount begins to decrease when a family reaches an income that allows them a measure of self-sufficiency.

The Hartford-area EITC campaign, operated by the Hartford Asset Building Collaborative, helped taxpayers collect approximately $2.8 million in EITCs last year. VITA sites in the Windham region helped tax filers collect EITCs worth more than $205,000, and VITA sites in New Britain, operated by the Human Resources Agency of New Britain, helped tax filers collect more than $773,000 in EITCs. Still, the IRS estimates more than $33 million in EITCs went unclaimed in Connecticut last year.

VITA sites also offer filers information on how to save and grow their money for the future. At select sites, students and their parents can receive assistance in completing the Free Application for Student Aid to help pay for college. Most sites offer filers the option to deposit their refund on a prepaid debit card.

At New Britain High school, accounting students are receiving a unique education in tax law this year. Sixteen students have been certified by the IRS to file returns for their peers. Students took the IRS certification exam in lieu of an accounting mid-term and will complete community service requirements toward graduation by serving as volunteer income tax preparers.

VITA sites will be open at convenient times throughout the week, including evenings and weekends. To locate a VITA site or to schedule an appointment, dial 2-1-1. United Way 2-1-1 is a free information and referral hotline, open 24 hours a day, 7 days a week.

The Beehive Tax Tool, a free self-preparation tax tool for those who earned up to $58,000 in 2009, is available through United Way of Central and Northeastern Connecticut, the Walmart Foundation and One Economy at www.myfreetaxes.com/unitedwayinc.

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