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Properly filing a tax return can be more daunting than finding a parking spot in South Philly. Even if filed correctly, many low-income residents don’t take advantage of certain credits that would allow them to pay less and receive larger refunds.
To help navigate through this maze, the Campaign for Working Families is changing the tone of a typically confusing tax season.
Managed by the Greater Philadelphia Urban Affairs Coalition, the campaign has initiated 17 free tax preparation sites throughout the city. Residents can drop by United Communities Southeast Philadelphia, Eighth Street and Snyder Avenue, during specific times for support.
Geared toward low-income families, this service is part of the campaign’s effort to protect taxpayers from rip-offs and inform them of the Earned Income Tax Credit (EITC), which was enacted in 1975. Low-wage earners, with or without children, who meet certain eligibility requirements, can pay minimal or no taxes. Others may receive refunds of up to $4,400.
"If [residents] don’t qualify for the Earned Income Tax Credit, but are low-wage earners, we will do their taxes as well," said Crystal Jacobs, communications associate for the Greater Philadelphia Urban Affairs Coalition.
Certified volunteers recruited through United Way have been assisting residents at United Communities since Jan. 28 and will conclude their services April 15 – tax deadline day.
The campaign, according to statistics, has directed more than $45 million to low-wage families over the past three years. More than 11,800 individuals sought support from one of its free sites last tax season, Jacobs said.
Via computer, volunteers assist residents, who must provide wage statements and personal identification. And, if all goes well, their forms should be filed in no time, Jacobs said.
"I saw a tax return done in as little as 13 minutes one day," she said.
THOUGH THE EITC takes some burden off taxpayers, few take advantage of it, Jacobs said.
An estimated 39,000 households citywide do not file for the credit, leaving more than $66 million out of their pockets. Jacobs believes this is because residents are either unaware of the credit or their qualification for it.
David Stewart, spokesperson for the Internal Revenue Service for the Philadelphia area, said more than 75 percent of eligible candidates did claim the credit last year.
"We make a good effort to get the word out," he said. "It’s not like it’s just there and nobody is doing anything to promote it. It is being promoted."
Besides informing taxpayers about the EITC, the coalition’s campaign also helps residents secure their money.
"These folks are being ripped-off. They’re being preyed upon by predatory lenders and commercial tax preparers charging these sky-high fees to do a service that should be free" for low-income residents, Jacobs said. "We provide the same amount of quality and care and are able to help them get more money back based on the expertise of the tax preparers we have."
The campaign’s tax preparation sites are modeled after the IRS’s Volunteer Income Tax Assistance sites that no longer exist.
Organizers of both hope to put the kibosh on tax return-preparer fraud. This crime involves the filing of false returns by preparers claiming inflated personal or business expenses, false deductions and unallowable credits or excessive exemptions.
"The individual is the one that is ultimately responsible for that return," said Stewart, adding preparers "would not be able to represent you in front of the IRS if there is a problem."
Stewart said taxpayers should learn the language of fraudulent preparers, including comments like "I can get you a refund and my fee is based on a percentage of that refund."
New this year to the IRS Web site, www.irs.gov, is an EITC calculator that automatically informs taxpayers if they qualify for the credit. Stewart added electronic returns surpassed the number of paper returns for the first time last tax season.
Jacobs referred to the refunds for those who seek the campaign’s services as a nice addition of cash in their pockets.
"It’s truly great for folks throughout the year that are struggling and trying to make end’s meet," she said. "[EITC] definitely helps bridge that gap in terms of certain instances or help that family get to that next step or meet that challenge that’s been holding them back."
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United Communities is offering tax preparation services Mondays, Tuesdays and Wednesdays from 5 to 7 p.m. and Saturdays from 9 a.m. to 2 p.m. until April 15. For more information, call 215-468-6111.
