3,400 families got free tax aid

Friday, September 22, 2006

Teresa Dixon Murray

Plain Dealer Reporter

The number of working families in Cuyahoga County who received free tax preparation at volunteer income tax clinics this year doubled compared with last year, according to an analysis by Policy Matters Ohio, a nonprofit research institute in Cleveland.

The Cuyahoga EITC Coalition filed more than 3,400 tax returns -- with nearly half of filers qualifying for the Earned Income Tax Credit.

The three-year-old coalition, which received a $200,000 grant funneled through Cuyahoga County from state and federal money, helped local families get $4.2 million in refunds this year. The coalition provides free professional tax help so lower-income residents don't have to pay to have their returns done. The EITC is a federal tax credit available to families earning less than about $37,000 a year.

David Rothstein, research assistant for Policy Matters Ohio, said the coalition is helping families get tax credits they deserve while allowing them to avoid expensive tax-preparation fees and high-interest loans.

"The return on the county's investment in the Cuyahoga EITC Coalition has been phenomenal," county Commissioner Peter Lawson Jones said in a written statement. The refund money is helping families meet basic living needs or start saving for the future, he said.

Policy Matters supports better regulation of so-called "refund anticipation loans," which Rothstein said unnecessarily gouge many people. Consumers who want their refunds immediately typically pay companies $200 to $250 for these loans; if they waited perhaps 10 days to get their refunds directly from the IRS, there would be no charge.

"I think people don't really realize they're borrowing their own money," Rothstein said. He also would like to see lower fees on these loans.

Policy Matters also supports a state Earned Income Tax Credit.

EITC is a refundable tax credit available to working adults without children earning up to $13,750 and families with at least two children earning up to $37,263. An estimated 15 percent to 20 percent of those eligible for the credit don't claim it.

To reach this Plain Dealer reporter:

tmurray@plaind.com, 216-999-6315

As a member of the Cuyahoga EITC Coalition, CHN works diligently to spread the word about EITC to the working poor. From annual kick-off events to free tax preparation services throughout the tax season, CHN has filed more than 500 EITC returns totaling $438,020.

Learn more about the Cuyahoga EITC Coalition below and its efforts to spread the word about the single largest and most effective antipoverty program in the country.

3,400 families got free tax aid

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	As a member of the Cuyahoga EITC Coalition, CHN works diligently to spread the word about EITC to the working poor. From annual kick-off events to free tax preparation services throughout the tax season, CHN has filed more than 500 EITC returns totaling $438,020. Learn more about the Cuyahoga EITC Coalition below and its efforts to spread the word about the single largest and most effective antipoverty program in the country.
	.	3,400 families got free tax aid Friday, September 22, 2006 Teresa Dixon Murray Plain Dealer Reporter The number of working families in Cuyahoga County who received free tax preparation at volunteer income tax clinics this year doubled compared with last year, according to an analysis by Policy Matters Ohio, a nonprofit research institute in Cleveland. The Cuyahoga EITC Coalition filed more than 3,400 tax returns -- with nearly half of filers qualifying for the Earned Income Tax Credit. The three-year-old coalition, which received a $200,000 grant funneled through Cuyahoga County from state and federal money, helped local families get $4.2 million in refunds this year. The coalition provides free professional tax help so lower-income residents don't have to pay to have their returns done. The EITC is a federal tax credit available to families earning less than about $37,000 a year. David Rothstein, research assistant for Policy Matters Ohio, said the coalition is helping families get tax credits they deserve while allowing them to avoid expensive tax-preparation fees and high-interest loans. "The return on the county's investment in the Cuyahoga EITC Coalition has been phenomenal," county Commissioner Peter Lawson Jones said in a written statement. The refund money is helping families meet basic living needs or start saving for the future, he said. Policy Matters supports better regulation of so-called "refund anticipation loans," which Rothstein said unnecessarily gouge many people. Consumers who want their refunds immediately typically pay companies $200 to $250 for these loans; if they waited perhaps 10 days to get their refunds directly from the IRS, there would be no charge. "I think people don't really realize they're borrowing their own money," Rothstein said. He also would like to see lower fees on these loans. Policy Matters also supports a state Earned Income Tax Credit. EITC is a refundable tax credit available to working adults without children earning up to $13,750 and families with at least two children earning up to $37,263. An estimated 15 percent to 20 percent of those eligible for the credit don't claim it. To reach this Plain Dealer reporter: tmurray@plaind.com, 216-999-6315 .	.
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