Households urged to check on tax credits

Action for Boston Community Development (ABCD) held its Earned Income Tax Credit (EITC) campaign kickoff last Thursday to encourage more low and moderate income families and individuals to file for tax returns and receive up to $5,751 in tax credits.

Last week’s announcement was held at ABCD’s Dorchester Neighborhood Service Center on Claybourne Street. ABCD is one of several organizations across the state that assists eligible residents in seeking the tax credits— and they are bracing for a large volume of applicants this year.

Vernette Allen, ABCD’s Director of Financial Futures Initiatives, said the agency’s Dorchester office helped 300 clients receive refunds totaling $460,000 in 2010. Of that money, $185,618 was through the EITC program.

Eligible filers receive federal and state tax credit that lowers the taxes owed. According to ABCD’s press release, an individual can collect up to $5,879 if they make less than $40,964 and live with two children.
Through Volunteer Income Tax Assistance (VITA) sites, people can have their taxes prepared by IRS-trained and certified volunteers without paying a fee that can run from $300 to $400, Allen said.

“People are unaware that there are state fees and hidden charges that tax preparers do not tell you about until the end,” Allen said. “Whether you get it through ABCD, it is important to see if you are eligible for EITC.”

Since many people are unaware what EITC is —or if they qualify for it — ABCD has created more awareness so less people pay to get their taxes done. Allen said the IRS allows people who are eligible for EITC to re-file their taxes and receive money from three years back.

Along with the group’s kickoff, ABCD has been advertising EITC to the community by creating PSAs and flyers, using social media websites, and “every possible way to start the conversation,” Allen said.

Allen provided an example of a single woman with no children who was unaware that she was eligible to earn EITC and paid to have her taxes prepared.

“The person doing her taxes typically had clients who didn’t get EITC, so he did not realize she qualified,” Allen said. “She was missing out on $5,000 every year and she got a check for $13,000 from the past few years.”

Allen said ABCD is providing this service throughout the ongoing tax season until April 17. The site will be open during the day, evening hours, and Saturday hours to “accommodate the clients and give Dorchester residents more access to what they are doing.”

The service is also available at the Mattapan Family Service Center at 535 River Street in Mattapan Square.


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