This year, you and your family might be eligible for $4,400 from the government - for simply filling out your tax return.
Unfortunately, every year thousands of Queens families and residents miss receiving the thousands of dollars owed to them through the Earned Income Tax Credit (EITC), mostly because they do not know about it or do not know how to get it.
Last year in New York, approximately 142,300 low-income households missed out on over $260.2 million in EITC refunds to which they were entitled. That is why I am working with ACORN, a non-profit community group, to make sure working families in our community claim their EITC and get their taxes prepared for free.
Through our program, called the Voluntary Income Tax Assistance (VITA), you can have your taxes prepared and filed electronically by a trained preparer free if you make less then $40,000 per year and support a family or if you are an individual with no dependents making less then $20,000.
If you already know about the Earned Income Tax Credit, check into who is doing your taxes. If you make below $40,000 and you think you are getting your money’s worth by paying someone to do your taxes - think again.
Often, tax preparers charge extremely high fees to people in our community to get the EITC fast by providing a cash advance at outrageous interest rates. Obviously, these so-called “Refund Anticipation Loans” (RALs) are expensive, but they are also simply unnecessary.
In 2005, the typical charge for a RAL was $130 in interest and fees, according to a study by the Consumer Federation of America and the National Consumer Law Center. The $130 cost represents an annual percentage rate of 245 percent on the average refund of $2,043. Moreover, all of that money and expense goes toward getting your own tax dollars back about a week or so faster than you otherwise would.
When you file your tax return electronically and opt for direct deposit into your bank account, you can get the tax credit in your account in as little as eight days.
So come to the VITA site in my office at 40-53 99th Street, between 39th and 41st Avenue between 2pm to 8pm Tuesday through Friday or 12pm to 5pm on weekends. Please bring your picture ID, social security card, W-2s, and a voided check. If you have any questions, call ACORN at (718) 246-7900 x 270.
If you think you qualify, do not miss the chance to have one of our trained tax preparers help you claim your tax credit. You are entitled to this money. You earned it. This is one a deal you cannot afford to pass up.
— Hiram Monserrate is City Councilman, District 21
