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A Publication of United Way of Salt Lake |
Sept. 20, 2007
Filing taxes is not an easy task. In fact, just the words “tax season” are enough to make the average person cringe. Because of the complexity of the forms, many low- to moderate-income families are not even aware they may qualify for the Earned Income Tax Credit (EITC), and many families miss out on the credit because they don’t earn enough to be required to file taxes. An estimated 40,000 qualifying Utah households leave $60 – $80 million in Earned Income Tax Credits (EITC) on the table each tax season. Why? Simply because they do not claim the EITC on their federal tax returns.
As a consequence, these qualifying households miss out on an average of $1,200 in EITC credits, but a qualifying family of four (earning $39,783 or less annually) could miss out on as much as $4,500 in refundable EITC tax credits—a significant sum that could drastically increase the financial stability of qualifying households.
The EITC is tremendously important for Utah’s hardworking families and for the state’s economy. It is also the primary reason United Way of Salt Lake (UWSL) created the “Earn it. Keep it. Save it.” initiative, an unprecedented collaborative effort involving 52 corporations, nonprofits and government groups statewide. The “Earn it. Keep it. Save it.” campaign promotes the EITC through marketing and outreach, and it coordinates the Volunteer Income Tax Assistance (VITA) program, which organizes free tax preparation opportunities and connects tax filers with financial education and asset-building opportunities.
Through “Earn it. Keep it. Save it.” and the VITA program, we are helping to lift Utah families out of poverty. In 2006, the “Earn it. Keep it. Save it.” awareness campaign brought an additional $21 million into Utah’s economy via the EITC and other tax credits. Every year hundreds of VITA volunteers help thousands of Utah families file their taxes and claim all of the credits for which they qualify. This initiative encourages low- to moderate-income families to file for the EITC and then use the money to achieve financial stability by paying off bills, establishing savings accounts, saving for the purchase of a home, and participating in other asset-building opportunities.
This past tax season, there were 44 VITA sites—locations where families could go to have volunteers prepare their taxes for free—hosted by businesses, universities, county governments, city governments and nonprofit organizations. Nearly 13,000 free returns were completed by 513 VITA volunteers. As a result of the collaborative effort, Utah families claimed more than $8.5 million in EITC and other tax credits—a boost to each family and to Utah’s economy as a whole.
It’s time now to prepare for the new tax season, and UWSL is actively seeking volunteers to join the VITA program. Now is the time to get involved! You don’t have to be a tax expert or a math whiz, and volunteers receive free training. Now is the time to sign up and learn how you can help hardworking families in your community benefit from the EITC. Please read the Impact Matters article in this newsletter for information on how you can become involved.
Deborah S. Bayle
President and CEO
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COMMUNITY MATTERS |
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Filing taxes is not an easy task. In fact, just the words “tax season” are enough to make the average person cringe. Because of the complexity of the forms, many low- to moderate-income families are not even aware they may qualify for the Earned Income Tax Credit (EITC), and many families miss out on the credit because they don’t earn enough to be required to file taxes. An estimated 40,000 qualifying Utah households leave $60 – $80 million in Earned Income Tax Credits (EITC) on the table each tax season. Why? Simply because they do not claim the EITC on their federal tax returns.
As a consequence, these qualifying households miss out on an average of $1,200 in EITC credits, but a qualifying family of four (earning $39,783 or less annually) could miss out on as much as $4,500 in refundable EITC tax credits—a significant sum that could drastically increase the financial stability of qualifying households.
The EITC is tremendously important for Utah’s hardworking families and for the state’s economy. It is also the primary reason United Way of Salt Lake (UWSL) created the “Earn it. Keep it. Save it.” initiative, an unprecedented collaborative effort involving 52 corporations, nonprofits and government groups statewide. The “Earn it. Keep it. Save it.” campaign promotes the EITC through marketing and outreach, and it coordinates the Volunteer Income Tax Assistance (VITA) program, which organizes free tax preparation opportunities and connects tax filers with financial education and asset-building opportunities.
Through “Earn it. Keep it. Save it.” and the VITA program, we are helping to lift Utah families out of poverty. In 2006, the “Earn it. Keep it. Save it.” awareness campaign brought an additional $21 million into Utah’s economy via the EITC and other tax credits. Every year hundreds of VITA volunteers help thousands of Utah families file their taxes and claim all of the credits for which they qualify. This initiative encourages low- to moderate-income families to file for the EITC and then use the money to achieve financial stability by paying off bills, establishing savings accounts, saving for the purchase of a home, and participating in other asset-building opportunities.
This past tax season, there were 44 VITA sites—locations where families could go to have volunteers prepare their taxes for free—hosted by businesses, universities, county governments, city governments and nonprofit organizations. Nearly 13,000 free returns were completed by 513 VITA volunteers. As a result of the collaborative effort, Utah families claimed more than $8.5 million in EITC and other tax credits—a boost to each family and to Utah’s economy as a whole.
It’s time now to prepare for the new tax season, and UWSL is actively seeking volunteers to join the VITA program. Now is the time to get involved! You don’t have to be a tax expert or a math whiz, and volunteers receive free training. Now is the time to sign up and learn how you can help hardworking families in your community benefit from the EITC. Please read the Impact Matters article in this newsletter for information on how you can become involved.
Deborah S. Bayle
President and CEO