ueens City
Council Member Hiram Monserrate is offering free tax preparation services
to help eligible residents receive the money they’re entitled to under the
little-known Earned Income Tax Credit (EITC). This tax credit returns
thousands of dollars to working families that earn less than $35,000 and
does not affect most public assistance programs such as Medicaid, Food
Stamps, and Social Security Insurance (SSI).
Monserrate,
who is Co-Chair of the City Council’s Black, Latino and Asian Caucus, is
taking this initiative because he’s seen that too often immigrant
communities and communities of color that need the EITC the most are the
least likely to know about it. About 230,000 eligible New York City
workers miss out on receiving available federal and state EITC funds
simply because they don’t know they exist.
This awareness gap creates a $500 million shortfall in EITC credits
that go unclaimed by New York City residents annually. "We must put an
end to the misinformation and lack of information in our communities,"
Monserrate stated. "The EITC not only helps families and hard-working
residents make ends meet, but pumps money into local shops, clothing
stores, and restaurants that keep our communities going."
[columns/ad_middle.htm]Monserrate
organized this free tax preparation service with ACORN, a community
organization that advocates for low-and middle-income families. Their
aim is to provide a much-needed alternative to the high-fee commercial
tax preparation agencies that pocket most of low-income families’
refunds through instant refund loans. He noted that tax firms open more
than half of their offices nationwide in low-income neighborhoods where
they reap maximum profits from such things as refund anticipation loans
(RALs), which provide customers with an instant check as a loan on their
refund. These loans often have interest rates of 97% to 2000%. H&R
Block, for example, made $68 million in profit from RALs in 2001, a rate
of profit of 51%, compared to their 16% profit margin overall.
"By providing people with a cheaper, more reliable option, we are
allowing working people to receive the full benefit of these EITC
refunds," said Monserrate. "It makes it possible for families to receive
the money they are entitled to without placing themselves in the debt of
others."
Monserrate’s free tax preparation services are available at his
district office at 40-53 99th Street on the corner of 41st Avenue in
Corona, Queens. Office hours are 4pm to 9pm Tuesdays through Fridays and
12pm to 5pm on Saturdays and Sundays. The phone number is (718)
205-3881.
