MEDIA RELEASE
This year, working families earning up to $48,362 may be eligible for an earned income tax credit (EITC) worth $5,666, depending on their income and number of children.
The Earned Income Tax Credit is a federal tax credit that rewards work by low- and moderate-income families. Refunds are often used to help families pay for necessities, like utility bills, rent, and children’s school supplies. The EITC makes a significant impact on the lives of working families struggling in this difficult economy.
Each year, this federal program brings $155 million in federal funds to local families. Without the federal EITC program, an additional 4.9 million people would have been in poverty, including 2.4 million children. The EITC lifts more children out of poverty than any other single program or category of programs.
However, the Earned Income Tax Credit frequently goes unclaimed. In fact, the Internal Revenue Service estimates Hawaii families miss out on $44 million in EITC funds every year.
Many who fail to file or self-prepare their federal returns are unaware of the program or their eligibility. This is a problem because working families need all the help they can get and our state loses out on missed economic opportunities when credits go unclaimed.
This tax season, the Hawaii Alliance for Community-Based Economic Development’s Family and Individual Self Sufficiency (HACBED-FISSP) program is helping families and individuals claim the EITC and file tax returns at no cost.
HACBED has mobilized more than 30 free tax preparation sites throughout the islands — often known as Volunteer Income Tax Assistance (VITA) sites — to give families guidance and assistance at no cost.
During the past four tax seasons, HACBED-FISSP’s VITA sites helped over 6,300 Hawaii families complete their tax returns. They received $7.1 million in refunds and saved $951,750 in tax preparation fees. The EITC is a win-win for reducing poverty among working families and boosting the local economy.
VITA sites are sanctioned by the Internal Revenue Service and offer free tax assistance by trained volunteers to low- and moderate- income families and individuals, the elderly and the military. Across the nation, more than 12,000 VITA sites offer free tax preparation services to people earning less than $48,000 per year.
Taxpayers who need help claiming the EITC or other federal credits and filing their taxes can call 2-1-1 or visit www.hawaiitaxhelp.org
The Hawaii Alliance for Community-Based Economic Development (HACBED) is a statewide federally tax-exempt non-profit organization established in 1992 to encourage investment in sustainable and community-based approaches to economic development.
HACBED’s advances social, economic, and environmental justice in Hawaii through community-based economic development; and seeks to help strengthen the voices and actions of Hawaii’s families and communities so that they have the choice and control they need to become self-sufficient and resilient.
For further information, contact HACBED at (808) 550-2661 or info@hacbed.org, or visit www.hacbed.org