United Way announces $30,000 investment in local EITC filing

LAWRENCE – NewUnited Way of Massachusetts Bay & Merrimack Valley President, Michael K. Durkin, is today announcing a $30,000 United Way investment into four Lawrence agencies aimed at helping more local residents and families file for their Earned Income Tax Credit (EITC), a refundable federal income tax credit for low-income working individuals and families. The announcement will be made at 11 a.m. at the Greater Lawrence Community Action Council. The EITC effort is part of a larger United Way strategy to help families achieve financial stability.

"The Earned Income Tax Credit is one of the largest anti-poverty tools working in the United States," said Michael K. Durkin, President and CEO of United Way of Massachusetts Bay and Merrimack Valley. "We need to make sure that people have the information and assistance they need to access EITC and use it to build savings and financial security."

"There are tools that help low income families survive the rising cost of everything from heating oil to health care. Too often people are unaware of these tools, and I commend the United Way and all of its Lawrence partners for investing in this outreach and education program," said Senator Sue Tucker.

The IRS estimates that 20 to 25 percent of Americans who qualify for the credit do not claim it. Often taxpayers are unaware of EITC or are concerned about the costs associated with seeking help filing for it. Last year, an estimated $4.9 million was left unclaimed in Lawrence alone. The average EITC refund last year was $2,111. To encourage Lawrence residents to learn about EITC and to help more individuals and families gain access to the earned income tax credit they need and have earned, United Way will be investing $30,000 into four Lawrence agencies:

• The Hispanic Office of Planning or Evaluation (HOPE) to continue its free tax service and EITC filing program for low-to-moderate income individuals and families.
• Greater Lawrence Community Action Council, which is launching a free tax service and EITC filing program for low-to-moderate income individuals and families.
• Family Service Inc. and Lawrence Community Works for outreach services to educate more Lawrence residents about EITC eligibility and promote use of the free tax preparation sites.

United Way's larger strategy to improve financial stability among individuals and families invests in skills development, education, career advancement, and asset building opportunities that help low-income workers achieve financial stability. For example, in 2007 through the sponsorship of Bank of America, United Way launched the Financial Education Toolkit, an online resource aimed at ensuring the quality and consistency of financial education programs in Massachusetts. Bank of America also works on a national level with United Way of America to increase access to EITC for low-to-moderate income families. The partnership continues to expand outreach and educate the public on EITC eligibility.

Individuals who want to learn more about EITC or free tax preparation sites for low-to-moderate income residents can dial 2-1-1, a free health and human service referral line or 1-800-906-9887.