Erie Free Taxes

Earned Income Tax Credit

The Earned Income Tax Credit (EITC) is a special tax benefit for working people who earn low to moderate incomes. It is a refundable federal tax credit that reduces or eliminates their income taxes. If the amount of tax credit the worker qualifies for is more than taxes he/she owes, the worker will receive the difference as a cash refund. The EITC allows working families and individuals to keep more of the money they work so hard to earn.

Services

• Free federal, state and local tax preparation at Volunteer Income Tax Assistance (VITA) sites in various city and county locations.
• Additional Services: Community Outreach and education regarding the benefits of the federal Earned Income Tax Credit (EITC) program, and financial literacy and asset management education and counseling.

Advantages of the EITC

• Lifts approximately 5 million Americans above the poverty line every year
• Reduces child poverty by 25%
• Is a powerful wage subsidy
• Can increase wages by up to $2/hour*
• Rewards work and stabilizes the workforce
• Generates additional economic activity and growth within the community

*Sources: Govebrookings Institution

Eligibility

You may be eligible for the federal Earned Income Tax Credit if your 2011 earned income and adjusted gross income are less than:

• $43,998 ($49,078 married filing jointly) with 3 or more qualifying children
• $40,964 ($46,044 married filing jointly) with 2 qualifying children
• $36,052 ($41,132 married filing jointly) with 1 qualifying child
• $13,660 ($18,740 married filing jointly) with no qualifying children

Tax Year 2011 Maximum Credit

• $5,751 with 3 or more qualifying children
• $5,112 with 2 qualifying children
• $3,094 with 1 qualifying child
• $464 with no qualifying child

Volunteer Income Tax Assistance (VITA) Sites

• Free income tax filing services for households with incomes of $50,000 or less
• Federal, state and local tax returns are completed by trained and IRS certified volunteers at VITA sites located throughout the city and county of Erie.
• Income tax returns are filed electronically at all VITA sites. Recipients can receive their refund in 3-5 days if Direct Deposit is used.
• Savings opportunities.
• PNC prepaid VISA debit card for eligible taxpayers at select VITA sites.
• Free check cashing application for eligible taxpayers.

Call 1-888-829-5680 for a list of sites and schedules.

Volunteer Opportunities

• Volunteers prepare basic and intermediate-level tax returns
• Volunteers do not need a background in finance, business, or accounting
• This is a wonderful opportunity to help people in a way that improves quality of life for individuals, families, and the community

Through the awareness, education, and the use of free tax preparation sites we will succeed in bringing the benefits of the EITC to our community.

If you are interested in learning more about the VITA volunteer experience, please contact:

Cheryl Bates, Program Director
Erie FREE Taxes
814-456-2937, ext. 236
cheryl@unitedwayerie.org

Statistics

• Over $2.3 million in EITC refunds were claimed by Erie VITA site filers last year.
• $6 million in tax refunds were returned to nearly 3,300 Erie Free Taxes VITA site filers in the 2011 filing season.
• Through host tax preparation sites called Volunteer Income Tax Assistance (VITA) sites, eligible tax payers have their income tax returns completed and electronically filed for free, saving each filer hundreds of dollars in commercial tax return preparation and refund loan fees.

*Sources: Government Accounting Office; Brookings Institution