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Who Takes Credit? Earned Income tax Recipients in Cleveland, 2006
More working families in Cuyahoga County received free tax preparation at
volunteer income tax assistance (VITA) sites in 2006 than in any previous
year. The Cuyahoga EITC Coalition filed more than 3,444 tax returns with
nearly half qualifying for the Earned Income Tax Credit (EITC). The
Coalition returned more than $4.2 million in total refunds to working
families, allowing them to keep their tax return dollars rather than
losing money to paid preparers. Such fees can cost more than $300 for a
$1500 credit according to the Brookings Institution. This is a 50%
increase in the number of returns and more than 60% increase in the
amount refunded to families from last year.
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Filers said they would use their refunds toward
basic needs purchases in the community such as household bills (47%),
savings (22%), housing (19%), food (17%), and clothing (12%).
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Roughly 65% of those who received free tax preparation did not report
receiving public assistance like Medicaid (13%) or Unemployment Insurance
(2%).
Click here to go to our main EITC page, with links to our other reports, a description of our work with the Cuyahoga Earned Income Tax Credit Coalition, and other resources.
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Cleveland Plain Dealer, September 22, 06
9/21/2006
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Policy Matters Ohio
Contact Policy Matters: staff AT policymattersohio.org |