Earned Income Tax Credit

The Federal Earned Income Tax Credit (EITC) is one of the largest anti-poverty tools working in the United States. This refundable tax credit can help low-income, working individuals and families pay off debt, build savings, and just get ahead. However, the IRS estimates that 20% of Americans who qualify for EITC do not claim it. Often taxpayers are unaware of EITC or are concerned about the costs associated with seeking help filing for it. That is, millions in our region unclaimed:

In 2009, UWMBMV invested $78,000 in agencies four target communities: Boston, Chelsea, Lawrence, and Quincy, in order to offer free tax preparation and expand EITC outreach. The specific agencies doing this work in those areas include: The Hispanic Office of Planning and Evaluation (HOPE)-Boston, HOPE-Lawrence, Greater Lawrence Community Action Council, American Training, Lawrence Community Works, Chelsea Neighborhood Developers, and Quincy Community Action Program. These seven tax sites…

• Filed 2205 federal returns totaling over $3.3million in refunds.
• Helped eligible individuals and families access $1.16 million in earned income tax credits.
• Provided free tax services so individual and families could access $3.3million in tax refunds and save another $330,000 in filing fees

In Lawrence alone, whose population has a 58% eligibility rate, the refunds and EITC returned back to working families relative to the previous year increased by 50%. The magnitude of this overall impact would have not been possible without the help of 101 trained volunteers, who contributed a combined 2,484 hours of their personal time to this effort.

In 2010, United Way will expand our investment into Lynn, with a new tax site at the United Way Financial Stability Center, powered by SPIN (Serving People in Need, Inc.).

Bank of America and United Way have partnered for years on our asset building strategy, including free tax preparation, to help low- and moderate-income individuals and families achieve financial stability.