2011-12-29_VITA FAQs_FINAL

FAQs Volunteer Income Tax Assistance (VITA) and Earned Income Tax Credit (EITC) Campaign

What is VITA?  Volunteer Income Tax Assistance  The Volunteer Income Tax Assistance Program (VITA) offers free tax help for households with an income of less than $50,000 last year.  IRS-trained volunteers will help you prepare and electronically file your state and federal income tax forms at no charge and will help you determine whether you qualify for tax credits and refunds, including the federal Earned Income Tax Credit (EITC) and the new Connecticut Earned Income Tax Credit (CT-EITC).  The sites help families avoid costly tax preparation fees.  The sites ensure families claim the tax credits and refunds they deserve, including the EITC. The IRS estimates that 15 to 20 percent of eligible taxpayers do not claim the EITC. What is the Earned Income Tax Credit?  The federal Earned Income Tax Credit (EITC) is an income tax credit available to individuals and families that earned up to $49,078, depending on family size, in 2011.  Eligibility is based on income, marital status and number of children. As an individual or family’s earned income rises, the amount of EITC they are eligible for also rises, providing an incentive to get and keep a job. The amount begins to decrease when a family reaches an income that allows them to be self-sufficient.  The average federal EITC last year was $2,240, according to the IRS.  The federal EITC is one of the nation’s largest anti-poverty programs. o Nationwide last year, more than 26 million people received nearly $59 billion in federal EITCs, according to the IRS. o Federal EITCs lifted an estimated 6.6 million people out of poverty, including 3.3 million children, according to the IRS.  Still, the IRS estimates that 15 to 20 percent of eligible taxpayers do not claim the EITC. What is the CT-EITC?  This past year, Connecticut passed legislation that created a state credit, the Connecticut Earned Income Tax Credit (CT-EITC). This is the first year the credit is available.  Individuals and families who qualify for the federal EITC will receive an additional tax credit worth 30 percent of the federal EITC. Where are VITA sites located?  Sites are located in several communities including: o Hartford o East Hartford o Manchester o Enfield o New Britain o Willimantic (Windham) o Putnam o Danielson (Killingly)  Dial 2-1-1 to find a site near you and to make an appointment.

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How quickly will I get my refund?  You can receive your refund in 7 to 10 days.  Most sites offer the option to deposit your refund on a prepaid debit card.

How do I make an appointment?  To locate a VITA site or to schedule an appointment, dial 2-1-1. United Way 2-1-1 is a free, multilingual information and referral hotline, open 24 hours a day, 7 days a week and is supported by gifts to United Way Community Investment.

I have a busy schedule. Will the sites be able to accommodate me?  VITA sites are open at convenient times throughout the week, including evenings and weekends.

Is tax assistance available in other languages?  Yes. When you dial 2-1-1- to make an appointment, make sure to ask for the language you need. Several sites offer tax help in Spanish, and assistance is also available in Polish at some sites.

Are other services available at the VITA sites?  VITA sites also offer information on how to save and grow your money for the future.  At select sites, students and their parents can receive help to complete the Free Application for Student Aid (FAFSA) to help pay for college.  At some centers, you can learn more about the Supplemental Nutrition Assistance Program (SNAP), formerly food stamps, and Women, Infants and Children (WIC).

How many people use the sites?  VITA sites in Connecticut returned more than $55 million to more than 41,000 individuals and families last year.

What is the economic impact of the VITA program?  VITA sites and the EITC stimulate the economy. EITC recipients generally spend refunds locally.

The Brookings Institution estimates that every dollar paid out through the federal EITC generates $1.40 to $2 in local economic activity.

Who runs the VITA sites?  Sites are run locally by Hartford Asset Building Collaborative (managed by Co-opportunity Inc.) and the New Britain Asset Building Coalition (managed by HRA of New Britain), with support from many other organizations, including United Way.  United Way supports VITA programs as part of its commitment to helping working families become more financially stable.  The sites are also supported by the Bank of America Charitable Foundation, the Walmart Foundation, Comcast Corporation, and by contributions to United Way Community Investment through the United Way Community Campaign.

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