February 26, 2007

Billions in Earned Income Tax Credits Go Unclaimed Each Year

Partnership offers free tax help to eligible residents to increase access to EITC

BOSTON – Residents earning less than $40 thousand a year can now turn to a free service to file their taxes and learn about the Earned Income Tax Credit (EITC). Beehive Boston (www. thebeehive.org), a collaborative project by United Way of Massachusetts Bay & Merrimack Valley and One Economy Corporation, is a free, bilingual online service that connects users to Web resources and, each tax season, helps low-income residents determine their eligibility for EITC and other tax credits.

EITC is an additional refund individuals can receive if they meet the eligibility criteria, have worked in 2006, and file a federal income tax return. Eligible filers can receive more than $4,000 each year, depending on their income and marital or parental status. According to the IRS, in tax year 2005 295,112 Massachusetts residents successfully filed for EITC, earning a total sum of nearly $473 million.

“This service is an answer to the anxiety that many people feel during tax season,” said Milton Little, Jr., president and CEO of United Way of Massachusetts Bay and Merrimack Valley. “In addition EITC information, Beehive helps individuals and families learn how to use their refunds to pay off debts, stabilize finances, or begin saving for education, retirement, or other long-term investments,”

The IRS estimates that 20-25 percent of Americans who qualify for the credit, however, do not claim it. Often these taxpayers suffer a lack of awareness of the program or are concerned about the costs associated with seeking help. To assist individuals and families with EITC and other tax questions, the Beehive offers free filing services and an online tax information center.

“Over seven million working families who were eligible did not claim their Earned Income Tax Credit last year, primarily because low-wage workers who are eligible simply don’t know about it,” said Rey Ramsey, CEO of One Economy. “Beehive Boston has the information necessary to help the working-poor file their taxes online and claim their EITC tax credits, free of charge.”

Through Beehive’s partnership with CompleteTax, qualifying residents can file their taxes online for free. For those without computers or Internet access, additional resources are available throughout the state, including Massachusetts’s Volunteer Income Tax Assistance Program (VITA) a collection of in-person tax prep sites that match certified volunteers with low-income individuals, individuals with disabilities, non-English speaking taxpayers, and the elderly. For further information on VITA, or to locate a site, visit: www.bostontaxhelp.org