Tax credits intended to help lower-income people have gone unclaimed by locals.
LEWISTON – Millions of dollars in tax credits often go unclaimed by some of Lewiston-Auburn’s poorest working people.
Local leaders want to change that.
Beginning on Jan. 20, volunteers will be gathering in three area locations to prepare and electronically file tax returns for low-income people. The service will be free.
Leaders hope to reach 1,000 or more eligible people who have not received an earned-income tax credit in the past. For people who are eligible, credits can exceed $4,000.
“We’re here to say, ‘Take the money,'” Mayor Lionel Guay said Thursday. “You’ve earned it.”
Who’s eligible?
• Families with two or more children who earned less than $33,692 in 2003 may be eligible for a credit of up to $4,204.
• Families with one child who earned less than $29,666 in 2003 may be eligible for a credit of up to $2,547.
• Workers without a child who earned less than $11,230 in 2003 may be eligible for a credit of up to $380.
Nationally, the tax credit program is huge. Begun in the mid-1970s, it represents more money than food stamps and the Temporary Assistance for Needy Families program combined.
Locally, the money surges into the millions.
In 2000, about $5.5 million in tax credits were awarded to Lewiston-Auburn families, said Renee Bernier, the City Council’s president. However, 892 families here missed out on an estimated $1.8 million in credits.
“It will bring money to those who need it the most: the working families,” said Normand Guay, Auburn’s mayor.
People who think they may be eligible for the tax credit are encouraged to call Lewiston City Hall at 784-2951, ext. 109. Beginning on Jan 12, a worker will be there to answer questions and schedule people for free tax preparation.
“We don’t want to take business away from accountants and tax specialists,” Bernier said. They should not be affected by the offering, since the target group, low-income people, rarely go to professionals.
However, it may serve as a free alternative for low-income people who have been using services that give immediate refunds for exceptionally high rates, often costing hundreds of dollars.
The program is being funded, in part, by a $7,500 grant from the Annie Casey Foundation. Classes for the volunteer tax preparers are being taught by Charles Swett, a senior tax specialist for the Internal Revenue Service.
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