June 2014 -- 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, and nearly 200 volunteers to assist in filing 3,136 federal returns and over 2,000 state returns for residents in Monroe and Owen counties.
This year, the Free Community Tax Service saved low- and moderate-income residents over $900,000 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 can result in a refund of up to $6,044 for those who qualify.
Barry Lessow, United Way Executive Director, said, “The Free Community Tax Service provides a measurable impact on individuals and families in our area who are struggling to make ends meet. We are grateful to all the volunteers and partner organizations who came together and, according to national research, kept over 3,000 people, including 1,800 children, out of poverty. About 24% of local residents reported they are using their savings to pay for food and clothing. Nearly a quarter of clients are reducing their debt by paying bills, and more than 20% are getting further on the road to financial stability by putting their refund in savings. When the Free Community Tax Service helps families, that also reduces demand on local agencies already overburdened providing essential services.”
At the eight VITA sites this year, community volunteers completed 2,037 tax returns—a 7.5% increase from last year. In its second year, Broadview Learning Center completed 109 returns, up 54% from last year. Ivy Tech, the largest of the sites, filed 755 returns, and the IU Maurer School of Law filed 505. Owen County Public Library increased its filing capacity to 244 returns, the Ellettsville Branch Library filed 105 returns, while the South Central Community Action Program filed 52. The mobile service, which visited Bloomington Housing Authority, LifeDesigns, and Stone Belt, served more than 76 individuals and families (up 41%), including many with disabilities. The new online option—MyFreeTaxes.com/Bloomington—allowed 189 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 455 returns and 644 returns, respectively.
Allison Zimpfer-Hoerr, United Way Community Initiatives Director, is energized by this year’s results, "I’m thrilled with the success of the Free Community Tax Service this year; it is truly a collaboration that depends on the dedication and commitment of so many organizations and volunteers. All the folks who contributed their time and effort have made it possible for working families get ahead. We’ve already begun preparing for the 2015 tax season and I’m excited about the prospect of continuing to build this thriving program."
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 $46,638 from the IRS and Walmart to implement the Free Community Tax Service. The IRS Volunteer Income Tax Assistance (VITA) grant enables the 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, 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.