FOR IMMEDIATE RELEASE

It's Your Money... You Earned It!

A Ross County EITC Coalition Campaign. Local coalition to offer free tax prep assistance for eligible workers.

Chillicothe, OH (January 11, 2008)A new coalition and campaign, launched today, aim to secure maximum available tax refunds for low- and moderate-income citizens in Ross County.

Providing free tax preparation assistance and fast refunds for eligible wage earners is the mission of the “It’s Your Money … You Earned It!” campaign sponsored by the recently organized Ross County EITC Coalition. The initiative is geared primarily to helping workers obtain Earned Income Tax Credit refunds for wages earned in 2007. By eliminating commercial tax preparation fees and loans, the free service will maximize refunds that, in turn, will be used to increase financial independence for working individuals and families.

“A collaboration has evolved that brings together key resources for reaching and assisting those in our community who may be unaware of the Earned Income Tax Credit (EITC) or who otherwise would spend a portion of those hard-earned dollars to file for and obtain their tax refunds,” said Wayne McLaughlin, spokesperson for the Ross County EITC Coalition and executive director of Ross County Community Action.

The Earned Income Tax Credit (EITC) is a tax credit that reduces or eliminates the taxes that low-income married or single working people pay and also frequently operates as a wage subsidy for low-income workers. Unlike tax deductions, tax credits are subtracted from the final amount of tax you owe. Those qualifying for the credit can be pleasantly surprised by their increased refund amount.

Eligibility is based on income level, marital status, and number of dependent children.

For EITC refunds, the maximum household income (married with two or more children) is $39,783. The maximum tax credits range from $428 to $4,716. The free local tax preparation service may also be available for families with annual household income up to $54,000 who are not EITC-eligible, but are eligible for the child tax credit, child and dependent care credit, or other tax benefits. Some guidelines and restrictions may apply.

Ross County EITC Coalition partners are working to promote awareness and provide free assistance to eligible taxpayers, beginning this month and continuing through April. Free tax preparation sites will be provided by several agencies and staffed by trained employees and volunteers to offer weekday, evening and weekend assistance. At some locations, additional counseling will be available to help determine eligibility for other state or federal assistance.

All free tax assistance will be offered by appointment.  Information regarding eligibility and necessary documentation is available from Ross County Community Action. All appointments also will be scheduled by Community Action. Interested individuals must call 779-2798 for details and appointments.

Additional volunteers are needed to assist with tax preparations. For information or to register for training, call Luke Feeney at Southeastern Ohio Legal Services, 773-0012.

The Ross County EITC Coalition was organized late last year after various agencies began discussing mutual concerns and began meeting at the United Way offices to determine how they might work together during the upcoming tax season. The coalition includes Ross County Community Action, Ross County Job & Family Services, Southeastern Ohio Legal Services, United Way of Ross County, Ohio University-Chillicothe, The Ohio Benefit Bank, and the Ohio Earned Income Tax Credit Coalition.

SCOPE: State and national statistics indicate the EITC funds benefit both working families and local economies because the refunds are used to pay debts, purchase necessities, build savings and increase assets. However, many of these dollars are reaching neither because wage earners are not filing claims.

• OHIO – In 2004, the EITC brought more than $1.3 billion back into the state’s economy, according to research cited by Ohio Treasurer Richard Cordray.  “However, up to 15% of eligible earners aren’t taking advantage of the EITC. This means that about 130,000 Ohio families miss out on money they sorely need, and that as much as $200 million in federal funds are not coming back into the state…,” Cordray said. (Source: Press Release: “Brown, Cordray Team Up to Bring Home Untapped Millions in Tax Returns” 1/31/07 on website) www.tos.ohio.gov/content/view/104/1/
• U.S. - Internal Revenue Service data for 2004 indicates that 21 million individuals received refunds that returned $39 billion in income to workers. “Of those receiving the EITC, 63.4% use their tax credit to pay current bills or debts, 20% use it to gain assets, such as a vehicle, house or education, and 12.4% use it to build savings.” (Source: “Earned Income Tax Credit” – United Way Financial Stability Partnership FastFacts)

For more information, contact United Way of Ross County, 53 East Second Street, 773-3280.