Free tax prep to aid low-income earners

Alarmed by the number of low-income workers missing out on income tax credits and paying for tax preparation, the area’s Community Action Partnership this week begins lessons that will lead to a free preparation program.

Compared to state and national filings, a below-average number of eligible Earned Income Tax Credit recipients in Waynesboro, Staunton and Augusta County actually collect on that credit, which averages $1,800 in Virginia and can be as much as $5,500, according to the Virginia Community Action Partnership.

Local partnership administrators recently underwent a two-day training session about the EITC and will use almost $9,000 in state funds to establish a coalition of volunteers who can provide free tax preparation.

Administrators this month told Staunton and Waynesboro city councils that the area has been identified as lacking in such a coalition because of poor uptake of the federal tax credit.

Organizers also hope to lower the rate paid for tax preparation: it’s 50 percent in the 24401 and 22980 ZIP codes that include Waynesboro, Staunton and Augusta County, according to the Brookings Institute, which receives data from the Internal Revenue Service

Carolyn Spohrer, deputy director of the Virginia Community Action Partnership, said low-income earners frequently have simple tax returns that a trained volunteer could handle, thereby saving the worker money.

“That could mean a world of difference to someone who is living on the margin,” Spohrer said, “people who need it the most.”

Last year, the state’s 25 coalitions helped file 17,500 returns of refunds for more than $15 million, said Jim Schuyler, executive director of the action partnership.

Anna Levitt is organizing the local tax credit coalition, starting with a meeting on Friday for human services providers, nonprofit groups and local people. Come tax time, those trainees will aid in tax preparation. Three additional sessions will follow before Jan. 15.

Asset investment education has followed in some of the state’s coalitions.

To be eligible for the tax credit workers must be at salary levels between $12,880 and $41,646 depending on married status and children. For more information, visit www.irs.gov.