As part of Mayor Richard M. Daley’s fifth annual Earned Income Tax Credit (EITC) campaign, the City of Chicago today reminded low-income residents to get their taxes prepared for free at one of the 28 city-funded free tax preparation sites. The EITC, a federal tax refund, can provide up to $4,204 to qualified families. Each year, Mayor Daley conducts a campaign to promote the EITC and ensure those who qualify for the valuable credit actually receive it.

“Promoting the EITC is one of the many ways Mayor Daley makes Chicago’s neighborhoods more affordable,” said Myer Blank, Executive Director, Chicago Tax Assistance Center.

“The EITC provides funds that families can use for critical needs like education, transportation, and housing.”

The credit also provides valuable money to the Chicago economy.  According to the Brookings Institution, in 2000, Chicago received $463 million in EITC refunds – those funds are usually recycled directly back into the local economy.

A critical part of Mayor Daley’s EITC campaign is the free tax preparation assistance the city provides by funding two local nonprofits -- the Tax Counseling Project and the Tax Assistance Program - It Adds Up.

Families earning up to $35,000 can receive free tax preparation assistance at 28 sites in Chicago and 19 in the suburbs. About half of the sites will file returns electronically to speed up the refunds. Some sites will also set up bank accounts so that refunds can be directly deposited.

As part of the EITC efforts, each year the IRS lends more than $400,000 of computer equipment to the free tax preparation services.

In 2003, more than 16,500 clients received more than $21.5 million in EITC refunds through the city’s 25 free tax preparation sites. This year, the city has expanded the number of free tax preparation sites to 28.

Blank reported that already this year, with one week left in the tax season, more than 15,000 families have been served. Those families will receive $21.7 million in tax refunds, the vast majority of which are EITC refunds.

The EITC is available to families that in 2003 earned up to $34,692 with more than one child; up to $30,666 with one child; or up to $12,230 with no children. Some families are eligible even if they don’t owe income taxes. Last year’s average EITC refund was $1,880.

Blank said that each year, thousands of Chicago families do not apply for the credit, either because they don’t know how, or are not aware of it.

The Mayor’s campaign, which is coordinated by the city, involves major employers, utilities, organizations, and government agencies. The city’s non-emergency number – 311 – is the central point of contact, and information is also be available on the city web site, www.cityofchicago.org and the IRS web site, www.irs.gov.

Local utilities, including ComEd, Comcast Cable, and SBC, will include EITC information with their utility bills, which will get the message to millions of Chicago area households. Dominick’s and Jewel are providing information about the EITC in their weekly circulars.

The Mayor has written businesses, employer groups, and organizations, asking them to mention EITC on paycheck stubs and to display posters and distribute flyers about the program.

The city also is distributing public service announcements to television stations, advertising information in community newspapers, and making experts available for radio interviews.

The Chicago Tax Assistance Center has distributed EITC information from its office in Room 100 of City Hall and also from a special booth in the City Hall lobby. Information is also available at Aldermanic ward offices, local Chicago Public Library branches, Chicago Public Schools, and Chicago Park District facilities.

###