City And Local Agencies Partner To Provide Income Tax Preparation Assistance, 2006

City And Local Agencies Partner To Provide Income Tax Preparation Assistance

Date of Record: February 2, 2006

FOR IMMEDIATE RELEASE
February 2, 2006

For more information, contact:
Sue Owens, Youth & Family Projects Coordinator, Community & Family Resources, City of Bloomington, 349-3468
Maria K. Heslin, Communications Director, City of Bloomington, 349-3569

Bloomington, IN -- Mayor Mark Kruzan announced today that the City of Bloomington is partnering with the Internal Revenue Service and several community agencies to offer free tax preparation and filing assistance to low- to moderate-income area residents through the Volunteer Income Tax Assistance (VITA) program.

VITA is a program that gives low- to moderate-income taxpayers an opportunity to receive free tax information and assistance in electronic filing of their federal and Indiana tax returns. The VITA program is free and does not ask for a percentage of a taxpayer's return, which can save a citizen hundreds of dollars.

Additionally, VITA will assist taxpayers who are eligible to receive tax refunds from the Earned Income Tax Credit (EITC). The EITC is a refundable tax credit that lifts more families out of poverty than any other program the federal government offers. Despite that success, it remains one of the most underutilized programs available to working families.

"As a result of the Earned Income Tax Credit, families can have access to their hard earned money," Kruzan said. "These credits may result in a significant income increase -- up to $4,400 -- for qualified taxpayers. The tax credits are also important because they transfer federal dollars into our local economy."

Last year, more than 21 million taxpayers nationwide collected more than $39.5 billion in EITC payments. However, about 25 percent of eligible workers do not claim the EITC because they don't know about the credits or don't know how to apply.

The local EITC effort has been operational for several years and has been increasingly successful each year. The program is intended to insure that local residents make full use of the EITC and maximize the tax benefits available to them under the credit.

"I encourage our local businesses and community organizations to spread the news about the EITC and our important program with their employees and clients," Kruzan said. "The credit can supplement workers' wages at no cost to employers. Since the tax credits help people take care of daily needs, they can help employees keep their jobs and promote a steady workforce."

The services available to local residents will be offered at several locations and times throughout the tax filing period. For a comprehensive list of times and locations of VITA sites in Bloomington, please visit the City of Bloomington web site at [www.bloomington.in.gov].

Along with the City, participating community groups include the Bloomington Housing Authority, Indiana Legal Services, Monroe County Community Action Program, Ivy Tech Community College, the Monroe County Public Library, AARP and volunteers from the IRS-sponsored Volunteer Income Tax Assistance (VITA) program.

Anyone wishing to use these services should be certain to bring all their tax information with them including W-2 forms, children's social security numbers and any other information necessary to complete their tax return. Individuals can also visit [http://www.irs.gov/individuals/article/0,,id=130102,00.html|http://www.irs.gov/individuals/article/0,,id=130102,00.html] to learn more about EITC qualifications. The site provides information in both English and Spanish.

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