MOUNT VERNON — Settling into its sophomore year of helping Knox County families maximize their federal income tax refunds, the United Way is hoping to make an impact on not only family finances, but the local economy as well.
Tax preparation counselors spent seven hours in a training session Saturday, learning to use The Benefit Bank software system as well as learning key tax information required to assist with basic tax returns during the free tax preparation assistance clinics.
“[Counselors] are certified to provide tax preparation assistance. The software does the work. We are truly there to help assist them as if they were preparing their taxes on their own,” said Jennifer Odenweller, executive director of the Knox County United Way.
“We are not the IRS or INS; we are not any of those agencies. We are just community people helping other community people,” Gayle Loyola told the new counselors about their upcoming endeavors. “In the end, all we’ve done is enter in the numbers the people gave us.”
Loyola conducted the training seminar and is the regional coordinator of The Benefit Bank, which operates under the umbrella of the Ohio Association of Second Harvest Foodbanks.
According to Odenweller, one of the major reasons for coordinating these free clinics is to make sure families who qualify are taking advantage of the Earned Income Tax Credit. EITC is a refundable credit available to low-income families based on their earned wages for the year and the number of children in the household. Certain couples and individuals can also qualify for EITC as long as they meet the income guidelines.
“Nationally, it is estimated that at least 15 to 25 percent fail to claim the EITC but are eligible,” said Odenweller. “For the 2005 tax season, 23 percent of Knox County filers claimed EITC.”
Individuals may qualify for Earned Income Credit if income is less than the following guidelines:
•$12,590 (or $14,590 if filing married and jointly) with no children.
•$33,241 (or $35,241 if filing married and jointly) with one child.
•$37,783 (or $39,783 if filing married and jointly) with two or more children.
“Claiming the credit, for those eligible, could have brought millions of dollars to Knox County’s economy in that tax season [2005] alone,” Odenweller said. “That enables families to pay medical bills, put food on the table, fix the car and so on.”
To qualify for preparation assistance, an individual must have a valid Social Security Number, be a U.S. citizen or resident-alien and income must be less than $54,000. The Benefit Bank cannot assist those who have capital gains to report for 2007, business income reported on Schedule C, rental or real estate income, or farm and clergy income.
Odenweller said that despite getting a late start in 2007, the clinics were successful in putting money in the pockets of some of Knox County’s most needy.
“One lady, we actually did her tax return at one clinic. She came back to the next clinic and we amended her prior year’s return. All in all, she ended up with over $6,000 she never dreamt she’d be eligible for,” Odenweller said. “She now actually left the state for a full-time job with benefits. Her life is 100 percent different than it was this time a year ago. A lot of that is because we enabled her to put assets into her family’s budget and make some decisions and take some steps. It’s exciting stuff to see.”
Options for those looking to prepare their tax returns include professional help, on-line filing and even special software which can be purchased. However, the United Way’s program is different because it is free to those who qualify.
“The average cost nationally is $200 for tax preparation,” Odenweller said. “They are saving that off the bat, so there is an immediate savings. We know that in 2005, nearly 60 percent of those who claimed EITC used paid preparers. We want to offer a free opportunity and make sure we can maximize what benefits families are accessing.”
Once complete, returns can be filed electronically. If the client chooses a direct deposit option, the refund can be available within seven business days.
If there is a problem with the return and the IRS does not accept the electronic filing, Financial and Debt Management Solutions, Mount Vernon, offers its services to help the client.
The Benefit Bank is a national program that brings assistance in tax preparation to lower-income families. Once tax returns are filed for a family, its vital statistics can be used by local agencies if the family is in need of assistance.
“The beauty of The Benefit Bank is that there is so much more software to this. We can do HEAP applications, WIC applications, food stamp applications. The Benefit Bank as a whole is meant to streamline,” said Odenweller.
Odenweller’s involvement with Second Harvest and the Benefit Bank came after working with the Wellness Coalition and trying to find ways for Knox County families to help pay for medication, doctor and dental appointments, as well as hospital procedures.
“The Wellness Coalition is meant to look at programming opportunities to help the uninsured and the underinsured,” Odenweller said. “We got to thinking about it and the easiest thing to do, in terms of a philosophy, would be to put money in people’s hands and they can buy medications, pay doctor bills and have a procedure done or get their teeth cleaned to prevent other things.”
In 2007, the Knox County Health Department, along with the United Way, coordinated with The Benefit Bank to help low-income families prepare their federal income tax forms. The program for Knox County residents is made possible by grants provided by Energy Cooperative’s Operation Roundup Foundation and the Osteopathic Heritage Foundation, which helped purchase five laptops and four portable printers.
Clinics will take place Wednesday, Jan. 26 and Feb. 9, from 10 a.m. to 4 p.m., as well as Feb. 12 and 21, from 11 a.m. to 8 p.m. The clinics will take place at the health department. Additional clinics will be set up throughout Knox County. Watch the Mount Vernon News for additional dates to be announced.
For more information about the clinics or to schedule an appointment, call the United Way at 397-5721.
