With fifteen sites countywide, the Coalition as a whole completed a total of 5,444 tax returns this season for the 2010 fiscal year. Of these, $1.5million were Earned Income Tax Credits claimed by qualifying individuals. According to the IRS, “the Earned Income Tax Credit (EITC) is a tax credit for certain people who work and have low wages.1”

Volunteer Income Tax Assistance (VITA) totals included seven sites countrywide and twenty-three volunteers preparing and filing $2.1million in total refunds and $836,000.00 in EITC. An average of 1,480 tax returns were completed, increasing the previous years’ levels by 50%. By using the VITA sites during the 2011 tax season, a total of 461 families who had who had obtained a refund anticipation loan or who had paid to have their taxed prepared during the 2010 tax season, saved an average of at least $11,000.00 and $45,279.00, respectively. VITA sites serve community members who are of low income, speak a first language other than English and/or who are disabled.

The Wake EITC Coalition is a “collaboration between community partners, volunteers and government agencies organized to ease the burden of paying taxes, improve accuracy of tax returns and help taxpayers find community resources.2” The Coalition was formed in 2007 and receives training and support from the EITC Carolinas Initiative, as well as from local IRS partners and common goal organizations. It is clear that it continues to grow with each passing year.

If you will not have your 2010 paperwork gathered by the deadline, you can also file for an extension. This does not change when the tax you may still owe is due, but allows you 6 more months to file your tax return. The Fiscal Progress location can aid you in e-filing your extension form.

After April 18th, the Fiscal Progress location will also continue to prepare and file taxes year-round by appointment only. This location does tax returns for years 2006, 2007, 2008, 2009, and 2010, and can do amendments as well. You can call (919) 719-1750 for an appointment.

KEY TALKING POINTS:

Why Raising Taxes on Working Families to Balance the Budget Shows Misguided Priorities for North Carolina

TOP MESSAGES:

Legislators’ recent plan to cut the EITC is a tax increase on North Carolina’s lowest earning working families that is bad for the state’s economy.

• 1 in 10 North Carolina households would experience a net tax increase with the loss of the refundable portion of the state EITC (Institute on Taxation and Economic Policy).
• More than 1 in 9 non-elderly households (12 percent) would experience a net tax increase (Institute on Taxation and Economic Policy).

Working families are being asked to pay for the tax breaks given away to profitable corporations.

This is bad for North Carolina’s economy. What they get from the EITC, working families spend on necessities, and they spend it locally. There’s no guarantee tax breaks for big companies stay in the state. It’s a bad deal for working families and for North Carolina.

Over 428,000 working families would see their purchasing power shrink and their ability to pay for food, clothing, housing, and transportation for themselves and their children compromised.

Families throughout North Carolina – in every zip code and every legislative district – would be hit by this tax increase.

• See attached Preliminary-2009-EITC-Data-by-County from the N.C. Department of Revenue

COUNTERING REFUNDABILITY ISSUE:

This isn’t a handout; low-income working families have to devote a higher share of what they make to sales taxes and property taxes than wealthy people do. The EITC evens the playing field and gives working families a chance to get ahead.

Ending refundability takes away the EITC’s ability to help working families cover the substantial share of their income they pay in sales and property taxes.

• North Carolina’s lowest income households, those in the bottom three-fifths pay at or near 9.5 percent of their annual income in state and local taxes. The wealthiest North Carolinians, whose incomes put them in the top 1 percent of all households pay under 7 percent of their income in state and local taxes (Institute on Taxation and Economic Policy).

Raising taxes on working families is the wrong way to solve North Carolina’s budget problems. North Carolina’s economy would be far better off if we maintain support for low-wage workers and their children and cancel costly tax breaks for profitable corporations.

ADDITIONAL MESSAGES:

Supporters of this tax increase say the state can’t afford the EITC. What the state can’t afford is to let struggling families go under. With the federal EITC the state EITC keeps hundreds of thousands of North Carolina working families and their children from slipping through the cracks, falling into poverty, and remaining unable to move up the economic ladder.

Business leaders support the EITC because it helps their employees stay in the workforce and make ends meet. Many businesses (such as utilities) also support it because it helps their customers pay their bills.

The EITC has a strong tradition of bipartisan support. Every U.S. President since Ronald Reagan has expanded the federal EITC. Reagan made expansion of the EITC a key part of the 1986 tax bill because he so strongly opposed income taxes on poor working families. Eliminating North Carolina’s EITC flies in the face of long held, strong bipartisan support for an effective tool for making work pay and reducing poverty.

Research shows that the EITC is very effective at encouraging parents to enter and stay in the workforce, providing a path to the middle class.

Just go to the iTunes store (or Android Marketplace) to download the free IRS2Go app. It just takes a few seconds to download.

Of course if you took advantage of free income tax preparation and filing through your local VITA or TaxAide partner, you already know when to expect your refund. If you filed by Wednesday, then your direct deposit would be in your bank account the second Friday. A paper check would be mailed the third Friday and would likely arrive a few days later. This schedule is true for the entire tax season.

For more information, visit IRS.gov or search for the IRS2Go app in the iTunes store or Android Marketplace.

National EITC Day brought out Internal Revenue Service officials and Representative Brad Miller to Wake VITA locations as a way to show support for local efforts. National EITC Day is an IRS-sponsored event that spreads news about available programs serving seniors and lower income tax filers.

First, Representative Brad Miller serving the 13th District in North Carolina visited with tax filers and volunteers at the Wake County Human Services office at Swinburne Street in eastern Raleigh. He was accompanied by IRS Senior Operations Advisor Joseph Wilson, IRS Greensboro Territory Manager Roger Burton and IRS Tax Consultant Jennifer Yearsley. UNC Radio also made a visit to publicize the event.

IRS officials Wilson, Burton and Yearsley also visited Fiscal Progress in western Raleigh where they met with tax filers and volunteers. Stan Holt, Director of Regional Initiatives with the United Way of

the Greater Triangle also was on hand to visit with all in attendance. Officials wanted to see the VITA locations that have spearheaded the Wake EITC Coalition over the past several years. IRS officials fielded numerous questions from volunteers and funders.

The Internal Revenue Service and United Way of the Greater Triangle have each provided funding for the Wake EITC Coalition and outreach efforts and continue to be primary sponsors of the service here in Wake County.

FOR IMMEDIATE RELEASE

Many May Overlook Valuable Tax Credit

Taxes Prepared for FREE at VITA Sites Throughout the Triangle

RESEARCH TRIANGLE PARK (January 28, 2011) – Each year, almost three-quarters of Triangle low-income households pay fees of up to $300 in tax preparation costs, or approximately 10-15 percent of their expected return, that could have been done for free by utilizing a Volunteer Income Tax Assistance (VITA ) site.

Further, many of these households also fail to claim tax credits designed to provide relief, such as the Earned Income Tax Credit (EITC). While the average EITC recipient receives $1,700 annually (ranges anywhere from $2 to $5,600), as many as 20 percent of eligible workers do not collect EITC simply because they are not filing for it; and less than 1 percent use a community VITA site.

People move into and out of EITC eligibility based on changes in their earnings, their parental status or their marital status according to Stan Holt, Director of Regional Initiatives at United Way of the Greater Triangle which sponsors the promotion of services available at VITA sites in the Triangle.  “Many people will qualify for the first time this year due to economic changes in their incomes.”

Holt encourages anyone who earned $48,362 or less from wages, self-employment or farming in 2010 to see if they qualify. Eligible workers can get their EITC only if they file federal income tax returns – even if they are not otherwise required to file – and specifically claim the credit.

“IRS estimates four out of five eligible workers claim their EITC. We want to raise that to five out of five,” Holt added. “You earned it. Now file, claim it and get it.”

Taxpayers can get free help determining their EITC eligibility and claiming the credit at any of the various Volunteer Income Tax Assistance (VITA) sites.  VITA sites are generally located at community and neighborhood centers, libraries, schools, shopping malls, and other convenient locations. Most locations also offer free electronic filing. To locate the nearest VITA site in North Carolina, call 877-NC4-EITC.The sites are staffed by IRS trained volunteers.

Last year, United Way’s support resulted in the number of VITA sites increasing by 50% across the region and this resulted in nearly $ 400,000 going to qualifying taxpayers.

To help accurately determine their EITC eligibility and prepare their returns, individuals should bring:

• Photo proof of identification
• Social Security cards for themselves, their spouse and dependents or Social Security number verification letters issued by the Social Security Administration
• Birth dates for all persons listed on the tax return
• Wage and earning statement(s) Forms W-2, W-2G, and 1099-R, from all employers
• Interest and dividend statements from banks (Forms 1099)
• Copies of last year’s federal and state returns, if available
• Bank routing and account numbers for direct deposit of their refunds
• Other relevant information about income and expenses
• Amounts paid for day care, if applicable and the day care provider’s identifying number.

To electronically file their returns and get the fastest refunds, both spouses must be present to sign joint returns.

“EITC is a financial boost for working people hit by hard economic times. This is money that can make their lives a little easier, especially families with three or more children who get an extra boost with a larger credit this year,” Holt said.

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United Way of the Greater Triangle improves lives by mobilizing the caring power of communities. United Way of the Greater Triangle serves Durham, Johnston, Orange and Wake counties by connecting callers to health and human service programs through United Way 2-1-1. To learn more about United Way of the Greater Triangle visit our website: www.unitedwaytriangle.org.

If you are a teacher deducting expenses incurred for your profession, you will have to wait to e-file. All itemizers will have to wait as well. If you have a mortgage or excessive medical expenses, you likely itemize.

According to the IRS, affected tax filers will be able to e-file Monday, February 14th. These returns are due April 18th along with the rest of 2010 individual income tax returns.

If you are an affected tax filer, you can still have your taxes prepared once you have received all your tax information. At our free tax preparation sites, we can prepare these tax returns, but will hold off on e-filing them until we have received the go-ahead from the IRS.

Questions?  Contact your free tax preparation site.

These sites are open:

Fiscal Progress VITA Site
Open Mondays, Wednesdays, and Fridays from 10-5
Appointments recommended (call 719-1750)

Wake County Human Services – Swinburne Location
Open Tuesdays 12-6, Thursdays 11-4, and Fridays 10-2

Martin Street CDC
Open Tuesdays 5-8, Thursdays 5-8

More sites will be open next week. Be sure that you have already received all W-2s and other tax documents before you come into a free tax sites. Employers have until January 31st to send them out.

You will need to bring:

An original social security card for everyone that will be on the return (you, your spouse if you’re filing together, and any dependents).  If you do not have these, please first apply for new cards at the Social Security Administration.  If you are filing separately from your spouse, we will still need your spouse’s social security number.

Photo ID for you and your spouse (if filing together).

All W-2s, 1099s, and any other tax forms you have received (for interest paid or received, tuition paid, or cancelled debt).  If you receive social security, please bring the 1099-SSA even if that income is not taxable.

A voided check or bank letter with your routing and account numbers if you anticipate a refund and wish to have it direct deposited.

Child care provider’s name, Tax ID number, and the amount paid if you paid child care expenses that allowed you to work, go to school, or look for work.

A copy of last year’s tax return if available.

If you have all these things in hand, you’re ready to find a free tax preparation site!

Existen tres locaciones que ofrecen preparación de impuestos gratis en ambos español e inglés:

St. Raphael the Archangel Catholic Church*
5801 Falls of Neuse Rd
Raleigh, NC 27609
(919) 865-5700 ext. 303
Sábado 9 – 1
Empezando el 29 de enero.

Centro Para Familias Hispañas
2013 N. Raleigh Blvd
Raleigh, NC 27604
(919) 873-0094
Sábado 9 – 1
Sólo con cita.
Empezando el 5 de febrero.

St. Andrew the Apostle Catholic Church*
3008 Old Raleigh Rd
Apex, NC 27502
(919) 362-0414, ext. 18
Sábado 9 – 12
Empezando el 5 de febrero.

*Ingreso restringido en esta locación a $49.000 dólares.

Para encontrar otras locaciones disponibles en inglés, busque aquí.

Debe traer TODAS las tarjetas de seguridad social, W-2s y todas las demás fuentes de ingresos para el contribuyente, el cónyuge y los dependientes.