Free Tax Help Could Also Mean Individual Refunds Worth Thousands to Nashville's Working Families
February 1, 2007
Contact: Carole King, (615) 780-2449
NASHVILLE, Tenn., February 1, 2007 –Nashville’s low- and mid-income working families can get a break this tax season by having their taxes prepared for free at one of twelve sites across the metropolitan area. Not only will the free tax assistance help them save hundreds of dollars in commercial tax fees and predatory "rapid refund" loans, it also provides the opportunity for these hard-working taxpayers to find out if they qualify for the Earned Income Tax Credit.
The Earned Income Tax Credit or EITC is arguably the most effective anti-poverty program in America and lifts more children out of poverty than any single federal program or combination of federal programs.
The IRS estimates that millions of eligible Americans fail to claim the Earned Income Tax Credit (EITC) because they do not realize they qualify. Many are not even aware of the credit because their income was below the legal filing requirement: if they never have to file they may never hear about the credit. Last year more than 540,000 Tennesseans received over $1 billion in EITC refunds; the IRS estimates that at least another 108,000 state residents may qualify but not know it.
“This program provides an invaluable service to Nashville’s hardest working families,” said Mayor Bill Purcell. “Ensuring that families understand and properly prepare their taxes and receive their full refund is beneficial not only for each family but for the community as a whole.”
The Nashville Wealth Building Alliance (NWBA) manages the VITA sites. The NWBA is a broad-based coalition of government, nonprofits, churches, and businesses working together to help low- and moderate-income individuals and families build financial stability and a better future.
Jessica LeVeen Farr, of Nashville’s branch of the Federal Reserve Bank of Atlanta and steering committee chair for NWBA, emphasizes the importance of the tax credit to struggling households: “Many families use their EITC to pay for basic necessities like housing, utilities, food, and major household appliances. Research also suggests that some families use it to make purchases or investments such as repairing or replacing a car needed to get to work, making essential-but-costly repairs to a home or paying for more education or job training — all of which can lead to greater financial stability.”
Information regarding the location and hours of all NWBA free tax preparation sites is available by dialing 2-1-1. The sites are staffed by IRS-certified, trained volunteers.
“United Way 2-1-1 played a key role in helping taxpayers find the VITA site closest to the them last year and once again will be providing a central information point for interested taxpayers,” said Mark Desmond, President and CEO of United Way of Metropolitan Nashville. “Helping working families build financial stability is just one of the many ways United Way is working to create a lasting impact in our community, so we’re very happy to partner with the Nashville Wealth Building Alliance in this unique community service and educational outreach.”
Increasingly, more companies and other organizations are seeing the value in that community service as well:
- East Nashville will be served this year by a new site sponsored by Blevins, Inc. Grand Opening for the site is Saturday, February 3.
- The 100 Oaks VITA site is sponsored by the Tennessee Department of Human Services.
- A new site in Madison is sponsored this year by First Baptist Church of Madison.
- Tyson Foods is sponsoring a VITA site on company premises for its employees.
All twelve Nashville Wealth Building Alliance-managed VITA sites for the public are now open.
Key support for the NWBA and the EITC effort comes from United Way of Metropolitan Nashville, Internal Revenue Service, the Metropolitan Government of Nashville and Davidson County, Metropolitan Action Commission, Metropolitan Social Services, Tennessee Department of Human services, The Federal Reserve Bank of Atlanta, SunTrust Bank, Wachovia, and Congressman Jim Cooper.