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The department invested $400,000 on
this program for tax year 2003. "Last year, the tax counseling
program helped 26,000 families across the state and, through the
earned income tax credit, returned over $34 million to the pockets
of Illinois' working families," Adams said.
"We consider that a good return on our
investment," Adams continued, "but this year we've stepped up our
outreach efforts. There are still thousands of working families in
Illinois who qualify for this refund but did not apply last year. We
want every family in the state that qualifies for this tax credit to
know about this program and get the refund that's owed to them."
Information was mailed to more than 1
million households served by the Department of Human Services. The
department also sent information to all its offices, contractors and
providers and posted notices on its website and toll-free phone
lines.
The earned income tax credit is a
special program to provide tax refunds to working families making
less than $35,000. Qualified workers who are raising more than one
child could receive as much as a $4,204 federal refund and another
$210 from the state tax credit.
Illinois is the only state in the
nation in which the state human services agency provides funding for
free tax preparation so that low-income taxpayers can avoid high
preparation fees and claim the credit. The Department of Human
Services began funding this program in 1997; since then, nearly
200,000 families in the Illinois Temporary Assistance for Needy
Families program have left welfare for work.
The tax credit is considered the
largest and most successful antipoverty program in history,
according to the National Tax Assistance for Working Families
Campaign.
In fiscal 2004, Department of Human
Services funding will go to two partner organizations, the Tax
Counseling Project and the Tax Assistance Program, that provide free
tax preparation and tax counseling to families with incomes under
$35,000 and individuals with incomes under $15,000.
The funding provides for 28 sites in
the Chicago area, but most importantly it also provides the majority
of the funding for 19 other sites around Illinois, including a new
program in Moline. As a result, Illinois has the largest statewide
program in the nation.
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this article]
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This year there is an even greater
opportunity because Gov. Rod Blagojevich signed legislation last
summer making the state Earned Income Tax Credit permanent and
refundable. The new benefit could be worth as much as $70 million to
working families if everyone who is eligible takes advantage of the
program.
For the 2004 tax season, services will
be available at 28 locations in Chicago and in Alton, Aurora,
Bloomington, Champaign, Cicero, Decatur, East St. Louis, Elgin,
Harvey, Joliet, Marion, Moline, Normal, North Chicago, Peoria,
Rockford, Springfield, Villa Park and Waukegan.
Last year, more than 1,700 trained
volunteers prepared 26,100 returns, generating $34 million in state
and federal refunds and saving families over $5 million in fees and
charges. These results represent a 33 percent increase over the 2001
tax year.
Volunteers will prepare federal and
state returns for the current year and, if necessary, for past tax
years. Volunteers also provide counseling and advise workers about
withholding allowances, filing status and other tax benefits, such
as the child credit and child care credit, for which they may
qualify.
The
department also coordinates on outreach with other state agencies
and other organizations to provide help for their constituencies.
These efforts include the Illinois Department of Revenue; Illinois
comptroller, for state employees; Department Public Aid, for KidCare
and child support clients; Department of Employment Security, for
Illinois Employment and Training Centers and local work force
boards; State Board of Education, for families receiving school
lunches; Illinois Community College Board, for financial aid
students; Illinois Chamber of Commerce, for employers; Illinois
AFL-CIO, for union members; Illinois Housing Authority, for public
housing residents; Community Action Association, for low-income
families statewide; and Rural Partners, for low-income families in
rural areas.
[Illinois
Department of Human Services news release]
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