United Way's 2-1-1 Helps Expand EITC Outreach

United Way's 2-1-1 Helps Expand EITC Outreach

The Earned Income Tax Credit (EITC) is the largest and most effective federal aid program for low- and moderate-wage income families.

Enacted by Congress in 1975, the credit has been widely praised for its success in supporting work and reducing poverty. Five million people, half of whom are children, escape poverty each year as a result of receiving this tax credit. EITC returns approximately $39 billion in income annually to low- and moderate-wage workers. Despite the significant benefits it provides, the IRS estimates that 4 million eligible individuals annually fail to file for the tax credit, forfeiting an estimated $2.9 billion dollars in EITC income. Others claim the EITC, only to lose a significant portion in tax preparation fees and costly refund anticipation loans (RALs).

Recognizing the EITC's potential economic impact on families and ? by extension ? communities, organizations nationwide are working together to initiate outreach and free tax preparation campaigns to ensure that families receive the full amount of the credit they earned.

United Way's 2-1-1 service is one of those organizations. It is helping the Chattanooga Urban League, the IRS Volunteer Income Tax Assistance (VITA) program and the City of Chattanooga expand their outreach among area tax-payers. United Way's 2-1-1 is helping distribute and promote information about the EITC and local tax assistance sites. It is also referring callers to financial education programs in their areas.

The Chattanooga Urban League, a partner agency of the United Way of Greater Chattanooga, is working with the City of Chattanooga and the IRS VITA program to help low- and moderate-wage earners take advantage of the federal EITC and file their taxes for FREE. Local volunteer tax preparers will be trained at the Urban League to help thousands of area residents get their return. Earned Income Tax Day is Thursday, January 31, 2008. The Chattanooga program officially kicks off on that day at 10 a.m. in the EastGate Town Center and lasts through mid-April.

If you call United Way's 2-1-1 in this area, you can find out:

• If you or someone you know is eligible for free tax preparation services
• Where and when community tax assistance sites are open
• A list of the paperwork filers need to bring with them
• Referrals to other applicable programs, such as Tennessee Saves or consumer credit counseling services

United Way's Volunteer Center and 2-1-1 are also helping in the recruitment of volunteers to assist in the tax preparation efforts. Please call soon because some sites will open for operation on January 31.?

The Urban League of Chattanooga, VITA and the City of Chattanooga helped more than 2,200 individuals file their income taxes and generated more than $2.5 million in tax refunds to the Chattanooga economy in 2007. They also delivered free training, provided by the Internal Revenue Service, to almost 100 people who gave their time to become Volunteer Tax Preparers and staffed multiple, FREE tax assistance locations throughout the region.

According to data from United Way of America (UWA) and the IRS, local United Ways participate in over 40 percent of the 271 EITC campaigns throughout the country, serving hundreds of thousands of individuals each year ? more than any other network. However, millions of families are not reached by these campaigns, and consequently don?t access the services necessary to help them file for the EITC. United Way's 2-1-1 resource service will work with the Chattanooga Urban League and the City of Chattanooga to help to close the gap in our area.

2-1-1, the national information and referral number championed by UWA, presents a significant opportunity to increase communication about tax preparation assistance sites, helping to increase EITC filings. Similar in operation to 9-1-1, 2-1-1 has been designated by the Federal Communications Commission to provide callers with information about and referrals to local health and human service providers, government agencies, and community based organizations.

To find out how you can volunteer for the VITA program, or to find out if someone you know may qualify for the EITC, call United Way's 2-1-1.

United Way of Greater Chattanooga funds local programs that create opportunities for people to care for themselves and each other, making our community the best at helping people achieve their potential. Thanks to an endowment fund that covers all overhead and administrative expenses, all contributions (100 percent) go directly to services that help individuals and families in greater Chattanooga, north Georgia and northeast Alabama.