CHENANGO COUNTY – In an attempt to bring more state and federal funds back into the local community, the Earned Income Tax Credit (EITC) Partnership Committee has worked for the last four years to help area taxpayers file their state and federal tax returns and return hundreds of thousands of previously unclaimed dollars to the community.
The EITC Committee was started in 2004. Manned by volunteers, the program offers free tax preparation for those who meet the income eligibility requirements. Trained by the IRS, the volunteers help area residents to file tax returns, get a refund and encourage those who don’t already have bank accounts to set them up and bank their money.
For the 2007 tax season, the EITC committee was able to prepare 568 tax returns for Chenango County residents, bringing more than $354,000 in state and federal earned income credits and more than $553,000 in total refunds back to the area. Since the program started in 2004, the number of returns filed and the amount of money that has been returned to the community has steadily increased from year to year. In the first year of the program, less than 50 tax returns were filed, that number grew to 150 in the second year, 503 last year and finally 568 for the 2007 tax season.
Unlike other tax credits, the EITC is different because low to moderate income families are usually eligible for the credit, even if they paid a very small amount of federal income tax. According to the IRS and the United Way of America, the EITC is the nation’s largest and most powerful anti-poverty program.
“The EITC project was so successful this year because of the dedication of our volunteers and our community partners. Not only did the partnership facilitate the return of over $272,501 in federal earned income tax credit refunds and $81,750 in state earned income tax credits, but local residents saved more than $61,000 in potential tax return filing fees by utilizing the free tax preparation sites. For households with an average annual income of around $14,000, the earned income tax credit allows us to put money back into the pockets of those who really need it in our community ... this is true community impact,” said Chenango United Way Executive Director Elizabeth Monaco.
Chenango Regional EITC Partnership Committee members now include representatives from Cornell Cooperative Extension, Opportunities for Chenango, Chenango United Way, GHS Federal Credit Union, Colgate University, AARP Tax Aide, Chenango County Farm Bureau, Manpower, IRS SPEC, Morrisville State College, Chenango County Department of Social Services and NBT Bank.
Funding for the annual project comes from the Chenango United Way, GHS Federal Credit Union and the United Way of New York state in coordination with Bank of America. AARP Tax Aide, Chenango County Cooperative Extension and Manpower provided office space and trained volunteers to assist with tax preparation. Staff members from Opportunities for Chenango provided financial fitness and budgeting classes in an effort to promote financial stability and self sufficiency through the project. The Chenango United Way conducted an EITC publicity campaign distributing more than 15,000 payroll flyers to businesses around Chenango County. More than 30 community volunteers and Colgate University students provided more than 1,534 volunteer hours to the EITC project over a ten week period earlier this year.
The Chenango County EITC will begin recruiting potential volunteers and organizational partners for the 2008 tax season as the project is discussed with the IRS throughout the summer. Retired volunteers and people with an accounting or financial background are especially needed. Next year, the partnership would like to further expand the number of free tax preparation sites available to Chenango County families by providing remote tax preparation sites in communities throughout Chenango County. Individuals or organizations who are interested in volunteering with the EITC Partnership may contact Elizabeth Monaco at the Chenango United Way at 334-8815 to learn more.