May 2013 -- United Way of Monroe County and the Financial Stability Alliance for South Central Indiana helped area residents file a record number of tax returns this spring. The Free Community Tax Service brought together community partners, including both Volunteer Income Tax Assistance (VITA) and AARP Tax Counseling for the Elderly (AARP/TCE) programs. Nearly 200 volunteers assisted Monroe and Owen county residents file 2,930 federal returns and over 2,000 state returns.
That helps residents increase their financial stability two ways. This year, the Free Community Tax Service saved low- and moderate-income residents up to $850,000 in tax preparation fees. Additionally, the IRS-certified volunteers helped eligible individuals and families claim valuable credits, such as the Earned Income Tax Credit (EITC), which provided an income boost. This valuable tax credit resulted in a refund of up to $5,891 for those who qualify.
Barry Lessow, United Way Executive Director, said, “The Free Community Tax Service provided a measurable impact on the lives of struggling individuals and families in our area. Volunteers and partner organizations came together and, according to national research, kept over 3,000 people, including 1,800 children, out of poverty. About 25% of local families reported they were using their savings to pay for food and clothing. More than 25% were reducing their debt by paying bills, and one in four were getting further on the road to financial stability by putting their refund in savings. When the Free Community Tax Service helps families make ends meet, that also reduces demand on local agencies already overburdened providing essential services.”
At the eight VITA sites this year, community volunteers completed 1,812 tax returns—a 29% increase from last year. The new site at Broadview Learning Center completed 71 returns. Ivy Tech, the largest of the sites, filed 744 returns, and the IU Maurer School of Law filed 430. Owen County Public Library increased its filing capacity to 215 returns, which represented a 32% increase over the previous year. The Ellettsville Branch Library filed 105 returns (a 64% increase), while the South Central Community Action Program filed 58. The mobile site, which visited Bloomington Housing Authority, LifeDesigns, and Stone Belt, served more than 50 individuals and families, including many with disabilities. The new online option—MyFreeTaxes.com/Bloomington—allowed over 150 taxpayers to file their taxes for free from the comfort of home.
AARP Tax Counseling for the Elderly (AARP/TCE) administered sites at Twin Lakes Recreation Center and the Monroe County Public Library. Those locations had similar success, filing 423 returns and 612 returns, respectively.
Ashley Hall, United Way's Community Initiatives Director, agrees, "We were so thrilled with the success of the Free Community Tax Service this year. This program is truly a collaboration that depends on the dedication and commitment of so many organizations and volunteers. By helping hard working families get ahead, we're building a financially stable and productive community that is better for everyone."
The Free Community Tax Service was made possible through generous grant funding from the IRS, Walmart Foundation, and AARP’s Tax Counseling for the Elderly (TCE). United Way of Monroe County received grants totaling $41,500 from the IRS and Walmart to implement the Free Community Tax Service. The IRS Volunteer Income Tax Assistance (VITA) grant enables the Free Community Tax Service to reach underserved populations and enhance volunteer training. The Walmart Foundation grant provides funding to coordinate Free Community Tax Service sites and raise awareness of the Earned Income Tax Credit (EITC).
Along with United Way of Monroe County and the Financial Stability Alliance for South Central Indiana, partners include 2-1-1, AARP, Area 10 Agency on Aging, Broadview Learning Center, City of Bloomington, El Centro Comunal Latino, Ellettsville Branch Library, Indiana Legal Services, Indiana University Maurer School of Law, Internal Revenue Service, Ivy Tech Community College, Monroe County Public Library, Owen County Public Library, South Central Community Action Program, Twin Lakes Recreation Center, Walmart, WorkOne Bloomington, and community volunteers.