LAFAYETTE   -- Community and business leaders raised awareness of free tax preparation and banking services being offered for low and moderate income workers at Lafayette Urban Ministry through Apr. 15 during a news conference Friday, Jan. 29 at the Lafayette Urban Ministry.

With W-2 forms now flooding mailboxes in Tippecanoe County, many cash-strapped workers who are eligible for the Earned Income Tax Credit will spend $250 and more for refund anticipation loans (RAL), saddling themselves with fees they could have avoided.

Earned Income Tax Credit (EITC) is a refundable credit that helps lift millions of workers above the poverty line.  Annually, it puts more than $43 billion in the hands of more than 22 million low wage workers.  The current economic situation makes it even more imperative that we reach out to those people who may be newly eligible for this important tax credit.

IRS estimates that 20 to 25 percent of eligible taxpayers fail to claim the credit which could put as much as $5,657 into the pockets of a family with three children, or send as much as $3,043 to a family with one child, or up to $457 for a worker with no children. The Earned Income Tax Credit is the federal government’s largest program benefiting lower earning workers.

“The extra dollars eligible taxpayers can get through EITC can make their lives a little easier,” said Patti O’Callaghan, Director of Social Justice at Lafayette Urban Ministry, “but they must file tax returns, even if they aren’t required to file, and claim the credit to receive it.”

O’Callaghan said some individuals and families may qualify for the credit for the first time because of unemployment or other changes in their financial, marital or parental status during the past year.

The EITC is a valuable but complex tax break. With technical expertise from Bison Financial Group, certified volunteers at Lafayette Urban Ministry will help low-income workers file their taxes electronically for a fast, free refund in about 10 days. 

The following are hours of operations of free tax preparation at LUM:

Mondays & Wednesdays 5-8 p.m., walk-in and appointments

and Tuesday & Thursday afternoons by appointment through April 15, 2010

Additional sessions in February: 

Wednesday afternoons, Thursday evenings & Saturdays - only in February

Again this year, Lafayette Community Bank will open savings accounts for our taxpayers who do not have bank accounts.  This will allow those clients to have their tax refund direct-deposited, and hopefully encourage saving.

The Earned Income Tax Credit can significantly benefit families, local economies and the economy of Indiana.  

According to Dave Vorbeck, managing partner of Bison Financial Group, “The EITC represents real opportunity not only for the recipients, but also for the community.  The end result is an amazing amount of economic leverage lifting everyone here in Tippecanoe County.”