An area volunteer agency helped residents save nearly $200,000 on their taxes this year.
But Rappahannock United Way officials hope a bill before the U.S. Senate could bring more people to the free tax clinics next year. Experts warn, however, that the bill doesn't have much chance of becoming law.
The United Way offered free tax-assistance sites, helping 131 families this season. Sarah Walsh, director of community investments, said more than 2,000 area residents qualified for the help.
Free tax clinics save families the cost of a commercial tax preparer--about $300, Walsh said.
Nationally, about 1 percent of people who are eligible for the Earned Income Tax Credit show up for free tax help, said Todd Post, an editor for Christian advocacy group Bread for the World.
"The EITC is so valuable to families on a low income, that any way we can make it possible for families to get more out of it really helps people who are already barely making enough to get by," Post said.
The Taxpayer Assistance and Simplification Act of 2008 could get more families into the free clinics. The bill, which passed the House last month, offers $10 million to volunteer tax-assistance programs throughout the nation.
The money could help them buy better equipment or hire staff to run the programs, Post said. Agencies also could use the funds to advertise the clinics, so more people know they're available.
Each year, the Rappahannock United Way looks for new ways to get the word out. The group is reaching more residents. In its first year of free clinics, 54 people showed up for help.
But with thousands still not coming for tax help, Walsh is most excited about the bill's provision to tell residents they could qualify for the EITC.
The bill calls for the Treasury secretary to notify people, based on past returns, that they could qualify for the credit. This could make them more likely to seek free tax help, Walsh said.
But the bill passed the House with divided support, and some wonder whether it can get out of the Senate. If it does, experts say, President Bush is likely to veto it.
The tax clinics are not controversial, but other provisions of the bill are dividing Democrats and Republicans, said Neil Buchanan, associate law professor at George Washington University.
Amy Flowers Umble: 540/735-1973
Email: aumble@freelancestar.com
| The Rappahannock United Way offered free tax help at the Thurman Brisben Center, Virginia Employment Commission, Garrison Woods and Hazel Hill apartment complexes, and Stafford Head Start. Trained volunteers provided tax preparation and filing services. The agency also provided a free credit review day.
The average refund was $1,453. --Rappahannock United Way |