Local volunteer program offers free tax preparation, e-filing

East Missouri Action Agency Inc. is currently sponsoring a program that helps low-income citizens with filing federal and state tax returns. It is called the Volunteer Income Tax Assistance (VITA) program.

Through this program, volunteers at EMAA outreach offices file income tax returns free of charge. These volunteers are trained by and use computer software provided by the Internal Revenue Service, so that tax returns can be filed electronically, which means clients may receive their refunds faster than by return mail.

Low-income citizens can receive all refunds due to them, free of charge, by letting VITA volunteers file their returns, in most cases receiving their checks within 7 to 14 days. Refunds may be electronically deposited into their personal banking account, or they can be mailed directly to the client.

In addition, EMAA VITA volunteers will determine if clients are eligible for Earned Income Credit (EIC) and/or the Child Tax Credit (CTC). EIC is a federal refundable income-tax credit for working families with lower incomes. It is available to married and single parents or caregivers.

Individuals and families without children may also receive the EIC if their incomes are low enough. The CTC is a federal tax credit now worth up to $600 per child in 2002.

Families with earned income above $10,000 who claim dependent children under the age of 17 on their 2002 tax return may also qualify for a credit through the CTC now. The Additional Child Tax Credit is a refundable credit that may allow certain individuals who get less than the full amount of the CTC to receive a refund even if they do not owe any tax.

The income eligibility guidelines and maximum credit amounts for EIC for tax year 2002 are listed below:

Workers who earned less than $34,178 and were raising more than one child in their home may be eligible for an amount up to $4,140.

Workers who earned less than $30,201 and were raising only one child in their home may be eligible for an amount up to $2,506.

Workers at least 25 and under age 65, who earned less than $12,060 in 2002, and were not raising a child in their home may be eligible for an amount up to $376.

Children in the home must be under 19 years of age or under 24 if they are a full-time student.

Call the local EMAA outreach office at 334-5533 to find out more details about these free services or to schedule an appointment.