Iowa State University Extension

Problem:
Commercial tax preparers charge an average of $100 to prepare a return claiming the Earned Income Credit (EIC) - reducing the value of any refund the worker is eligible to receive. In 2004, low-income wage earners living in Cerro Gordo County had few options when seeking free assistance with income tax preparation and filing. Only 73 households took advantage of the free tax preparation site located at the Senior Center in Mason City. More than 1900 households, eligible to claim EIC, paid a commercial tax preparer to file their taxes. Another 429 paid to file online themselves.

Response:
Using grant money from ISED (Iowans for Social and Economic Development) training was provided and computers, supplies, and publicity were purchased. A coalition was created including Workforce Development, Community Action, Mercy Hospital, a local church and Iowa State University Extension - Cerro Gordo. An area wide publicity campaign increased the awareness of EIC and the CTC (Child Tax Credit) and the free tax preparation assistance available at the Iowa State University Extension office and the Workforce Development office in Mason City. ISU Extension trained 5 new volunteers and supported both sites.

Impact:
More than 226 households received tax preparation assistance from the two new VITA sites located in Mason City and two other two-day satellite sites located in Butler County and Winnebago County Extension offices. More than $105,729 in EIC; $13,110 in State refunds; and $268,368 in Federal refunds were recovered for area workers.

Additional ISUE Extension Staff:
Joann Bartusek, OA
Allison Roe, CYC

Additional Team Members or Community Partners:
Cynthia S. Lind - NIACC
Sue Hofstrand - NIACC
Senora Gilley - NIACC

Contact:
Brenda Schmitt
Cerro Gordo County Extension
2023 S Federal Ave
Mason City, IA 50401
641-423-0844
schmitt@iastate.edu