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Earned Income Tax Credit

The Federal Earned Income Tax Credit (EITC) is one of the largest anti-poverty tools working in the United States. This refundable tax credit can help low-income, working individuals and families pay off debt, build savings and get ahead. However, the IRS estimates that 20 to 25 percent of Americans who qualify for the credit do not claim it. Often taxpayers are unaware of EITC or are concerned about the costs associated with seeking help filing for it.

EITC in Greater Boston

In Greater Boston, United Way and the Bank of America Charitable Foundation have partnered for an asset building strategy to help low- and moderate-income individuals achieve financial stability. A fundamental component of this initiative is to help people obtain free tax preparation assistance and unclaimed tax refunds through the Earned Income Tax Credit, a refundable federal income tax credit for low-income working individuals and families.

Last year, this partnership:

  • Filed 2036 additional returns.
  • Helped eligible individuals and families access $928,318 in earned income tax credits.
  • Provided free tax services so individual and families could access $2,225,383 in tax refunds.

EITC in Merrimack Valley

In 2008 United Way expanded its EITC effort into Lawrence, a city which leaves an estimated $4.7 million in tax credits unclaimed each year.  Studies show that approximately 60% of the Lawrence population is
potentially eligible to claim EITC. United Way's investments supported two tax prep sites and outreach to help more local residents and families file for their earned income tax credit. In its first year, the partnership:

  • Filed 420 additional retuns.
  • Helped eligible individuals and families access $177,869 in earned income tax credits.
  • Provided free tax services so individuals could access $389,709 in tax refunds.

EITC online

United Way and One Economy have joined forces to help people earning $54,000 or less get free tax services and, if eligible, access their EITC online. By visiting the Boston Beehive Website, users can access Web-based tools and information about financial services and file their federal and state income tax returns.