Earned Income Tax Credit (EITC) - Free Tax Preparation
What is the EITC?
The EITC is a federal tax refund for eligible working individuals and households. Through the EITC Coalition, United Way of Central Massachusetts is making this tax credit more easily accessible to those who need it most.
You must have earned income to apply for the EITC. Households that qualify for the EITC could receive a tax credit refund of up to $4,700.
The EITC is a tax benefit for low to moderate-income working individuals and families. Workers who qualify for the EITC and file an income tax return can receive a refund, even if they had no income tax liability for the given year.
Why is the EITC important? Each year, low-income families substantially increase their annual income by utilizing the EITC. In fact, the EITC lifts more families out of poverty than any other federal aid program, providing families an opportunity to increase savings, reduce debt, and finance education or training programs. The EITC credits that go unclaimed by low-income workers represent millions of dollars of lost revenue that would otherwise boost local economies.
Reality of EITC losses: Each year, millions of EITC dollars go unclaimed. In addition, many who claim EITCs apply for Refund Anticipation Loans and end up pocketing less than half of the money they earned. These loans have interests rates as high as 74 percent.
Who is eligible?
Families with one child who earn less than $35,463 in 2009 (or less than $40,463 for married workers) are eligible for a potential Federal refund of up to $3,043.
Families with two children who earn less than $40,295 in 2009 (or less than $45,295 for married workers) are eligible for a potential Federal refund of up to $5,028.
Workers without a qualifying child who earn less than $13,440 in 2009 (or less than $18,440 for married workers) are eligible for a potential Federal refund of up to $457.
How to claim the EITC
- Complete the Schedule EIC in the Federal 1040 or 1040A.
download here
- FREE: Take advantage of free tax preparation services. Known as Volunteer Income Assistance, or VITA, this program provides IRS-trained volunteers to prepare and file tax returns for free.
United Way's role
We are focused on financial stability: United Way is creating lasting community change by focusing on educational preparedness, Financial Stability and basic needs. Through the Earned Income Tax Credit Initiative, UWCM is addressing Financial Stability by helping taxpayers claim federal rebates.
What we’re doing: We are part of the Worcester EITC Coalition, which is working to create awareness about the EITC and engage volunteers to help prepare taxes for free. The Coalition recruits volunteers to serve at VITA sites and helps people claim eligible tax credits. We are also working to build awareness about financial issues such as predatory lending practices, pay day loans, and predatory tax preparation services that further hinder an individual’s ability to save and build assets.
Volunteer Income Tax Assistance (VITA) sites: VITA sites are sanctioned by the IRS and provide free tax preparation services and financial literacy counseling to qualifying individuals. Currently, only 1 percent of EITC tax returns are prepared at free sites.
To learn about EITC eligibility or to make an appointment call a VITA site listed below (all sites are by appointment only unless otherwise noted):
Plumley Village
Resident Services Office
16 Laurel St. 01608
(508) 770-0508 / (508) 831-9835
(Spanish translation available)
Worcester State College
Center for Service Learning & Civic Engagement
Sullivan Building, 2nd Floor, Room 206
486 Chandler St. 01602
(508) 929-8635
(walk-ins accepted)
Main South Community Development Corp
875 Main St. 01610
(508) 752-6181
(Spanish and Vietnamese translation available)
Worcester Community Action Council
Job and Education Center
484 Main St. Suite 320
(508) 754-1176 ext.176
(Spanish translation available)
This year's results: United Way is proud to be involved with the Earned Income Tax Credit Campaign (EITC), primarily through volunteer recruitment/management and participating on the steering committee. There are many partners involved in this work and together we have achieved some excellent results. Having supported the EITC Campaign since its inception in 2002, United Way is making a real difference in the lives of many hard working low-income families in central Massachusetts. Download a summary of overall results of this year’s EITC Campaign>>
Congratulations to our very own Rita Crimmin, recently recognized for her excellent work in recruiting volunteers, organizing trainings, placement of volunteers and ongoing support of volunteers throughout the tax season. The results show the outcome of her hard work – 97 volunteers – an 80% increase in non-academic (student) volunteers; 15% increase in overall volunteer participation, far exceeding our goals in this area. Thank you and congratulations to Rita and all the EITC volunteers!
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