City And Area Agencies Partner To Provide Income Tax Preparation Assistance

FOR IMMEDIATE RELEASE
January 26, 2007

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 - With an eye toward continued enhancement of Community Condition, Mayor Mark Kruzan announced today that the City of Bloomington is collaborating with the Internal Revenue Service and several area agencies to offer free tax preparation and filing assistance to low- to moderate-income residents through the Volunteer Income Tax Assistance (VITA) program.

VITA is a volunteer-based program that provides free tax information and assistance to low- to moderate-income working individuals and families. The program aids residents with their electronic filing of federal and Indiana tax returns.

Services supplied by VITA are available at no cost and do not require a percentage of a taxpayer's return.

VITA also will assist taxpayers who are eligible to receive tax refunds from the Earned Income Tax Credit (EITC). When the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.

"The EITC is a refundable tax credit that lifts more families out of poverty than any other program the federal government offers," Kruzan said. "As a result of the Earned Income Tax Credit, families can have direct access to their hard earned dollars. These credits not only help individuals, but also help the City's economic vitality because the credits transfer federal dollars into our local economy."

In 2005, 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 insures that local residents make use of the EITC and maximize the tax benefits available to them under the credit.

These credits may result in a significant income increase -- up to $4,500 -- for qualified taxpayers.

"I encourage all local businesses and community organizations to spread the word about the EITC and our free program to 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. Upcoming dates include January 27 from 9 a.m. to 4 p.m. and January 28 from noon to 4 p.m. at the South Central Community Action Program, 1500 W. 15th Street. 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|/documents/viewDocument.php?document_id=2072].

Along with the City, participating community groups include [Indiana Legal Services|http:///editors/fckeditor/'http://www.indianajustice.org], [Ivy Tech Community College|http://www.bloomington.ivytech.edu/], [Monroe County Public Library|http:///editors/fckeditor/'http://www.monroe.lib.in.us/], [Monroe County Division of Family and Children|http://cgi.hoosier.net/cgi-bin/cgiwrap/uwmonroe/viewentry?id=140], [AARP|http://www.aarp.org/] and volunteers from the IRS-sponsored Volunteer Income Tax Assistance (VITA) program.

Residents wishing to use these services must bring all tax information including W-2 forms, children's social security numbers and any other information necessary to complete their tax return. Individuals can also visit [www.irs.gov/individuals|http://www.irs.gov/individuals] to learn more about EITC qualifications. The site provides information in both English and Spanish.

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