Coalition spreads the word on tax credits.

Byline: Martin Luttrell

WORCESTER - With a slowing economy and higher prices for gasoline and heating oil, making ends meet is increasingly difficult for the working poor. But many are unaware of tax credits that could return hundreds or thousands of dollars, making rent, food and daily expenses less painful.

With that in mind, a coalition of federal, city and local nonprofit agencies kicked off its annual drive to inform low-income taxpayers of the Earned Income Tax Credit, a tax credit for people who work, but don't earn high incomes.

Last year some 14,000 city households claimed the tax credit, receiving nearly $26 million in returns, according to William C. Smits, territory manager for the Internal Revenue Service. During a press conference yesterday to announce the Worcester EITC Coalition's outreach efforts, Mr. Smits said the goal is to assist another 5,000 taxpayers in Worcester County with free tax preparation and claiming the earned income credit. Many who qualify for the earned income credit are also entitled to the Child Tax Credit.

"We want everybody to get the refund that they're entitled to it," Mr. Smits said during the brief program at the Main South Community Development Corp., which joined the five-year-old coalition this year. "We want them to know how to make a claim and where to get assistance. It's the biggest anti-poverty program in the country."

The IRS estimates that as many as 25 percent of Americans who qualify for the credit do not claim it. At the same time, there are millions of Americans who claim the credit in error, many of whom do not understand the criteria. The IRS is trying to make it easier for taxpayers to understand if they are eligible with online tools like the EITC Assistant, an online tool found on www.irs.gov, which offers simple steps on determining whether taxpayers qualify for the credit.

For instance, a family with no children that earned less than $14,590 could get a credit of up to $428. A family with one child that earned less than $35,241 could claim a credit of up to $2,853. With two children and income less than $39,783, the credit goes up to $4.716.

The Child Tax Credit would offer another $1,000 per child for families that earned less than $11,750.

Assistance in determining eligibility, as well as free assistance in tax preparation, are available to qualified taxpayers at the Main South CDC, Worcester State College and the Plumley Village Resident Services Office.

"Any help we can give to the low-income, we should," said Stephen Teasdale, executive director of the Main South CDC. "We're glad to participate in this."

Stephen Hill, a staff assistant with the city's Division of Neighborhoods and Housing Development, estimated that there could be another 1,300 households in Worcester that are eligible for the tax credit.

Julie A. Jacobson, assistant city manager, said that since the coalition was established and began outreach in 2003, participation in the tax credit in Worcester has increased 50 percent.

"We've got to get this money back into their pockets," she said. "It helps the entire continuum of care" for low-income residents who rely on social services.

U.S. Rep. James P. McGovern, D-Worcester, reiterated the need for people to know of the program, saying that the number of people who live paycheck to paycheck is rising.

"We're facing brutal economic times," he said. "People are at risk of falling through the cracks. They have problems that require not just a governmental response, but a community response."

Jill C. Dagilis, executive director of the Worcester Community Action Council, a federally-mandated anti-poverty agency that serves 38 communities, said people need the tax credits now more than ever.

For information and assistance with the Earned Income Tax Credit, call Volunteer Income Tax Assistance sites at Plumley Village, [phone]; Worcester State College at [phone]; or Main South CDC at [phone].