Extension to Families
Success Stories
SW Iowa Making Connections—Earned Income Tax Credit Campaign
Problem:
A way to improve the long term financial stability and well being of lower income working families is to increase income by ensuring they claim the Earned Income Tax Credit (EITC) and Child Tax Credit.
Response:
With financial assistance from the Iowa Department of Human Services and the Annie E. Casey Foundation, Southwest Iowa Making Connections in cooperation with ISU Extension recruited and trained 12 individuals to be IRS Volunteer Income Tax Assistance (VITA) workers. These individuals included 4 new and 6 returning volunteers, and 2 returning site coordinators. The volunteers provided free tax services at 7 sites throughout rural SW Iowa during January-April 2007. Returns were prepared using TaxWise software and e-filed. The tax services were marketed through local media, churches, financial institutions, and programs serving lower income families including HeadStart, WIC, etc. Appointments were scheduled through a toll-free phone number and confirmation letters were sent to participants.
Impact:
Over 300 taxpayers called to request tax appointments with 256 returns prepared; an increase over last year's 218 returns. The total EITC claimed was $201,521 from 134 taxpayers resulting in an average EITC of $1504. The Child Tax Credit was also claimed by 64 of the taxpayers totaling $90,767. These credits were reflected in a total federal refund amount of $428,100 received by 244 of the taxpayers. State refunds totaling $36,940 were also received by 179 taxpayers. Direct deposit into a bank account was requested by 152 of the participants. Data by county:
County |
# of returns |
Child Tax Credit |
EITC (Earned Income Tax Credit) |
Federal Refund |
State Refund |
Audubon |
4 |
$394 |
$4536.00 |
$6545.00 |
$585.00 |
Cass |
41 |
$11,583.00 |
$24,194.00 |
$50,051.00 |
$3112.00 |
Fremont |
7 |
$395.00 |
$5612.00 |
$10,122.00 |
$591.00 |
Harrison |
20 |
$10,925.00 |
$15,205.00 |
$35,422.00 |
$1543.00 |
Mills |
24 |
$6733.00 |
$18,930.00 |
$40,232.00 |
$3816.00 |
Montgomery |
58 |
$27,061.00 |
$50,526.00 |
$110,929.00 |
$8665.00 |
Page |
53 |
$11,501.00 |
$44,332.00 |
$76,295.00 |
$11,950.00 |
Pottawattamie |
6 |
$1,000.00 |
$130.00 |
$4307.00 |
$1614.00 |
Shelby |
31 |
$17,442.00 |
$35,662.00 |
$75,870.00 |
$4070.00 |
Taylor |
3 |
$2733.00 |
$2064.00 |
$8164.00 |
$305.00 |
Other |
9 |
$1,000.00 |
$330.00 |
$10,163.00 |
$689.00 |
TOTAL |
256 |
$90,767.00 |
$201,521.00 |
$428,100.00 |
$36,940.00 |
Contact:
Mary Beth Kaufman, ISU Extension
Family Resource Management Specialist
906 6 th Street, Harlan, IA 51537
Phone: 712-755-3104
E-mail: mbkaufma@iastat.edu