Goodwill Helps People Keep More of their Earnings this Tax Season

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Jan 11, 2011, 08:20 ET

Goodwill Urges Qualified Individuals to Claim the Earned Income Tax Credit (EITC)

ROCKVILLE, Md., Jan. 11, 2011 /PRNewswire-USNewswire/ -- Working Americans, single or married, with or without children, may qualify for the Earned Income Tax Credit (EITC), allowing them to keep more of what they've already earned and better support themselves and their families.

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Each year, Goodwill® partners with the Internal Revenue Service (IRS) to provide Volunteer Income Tax Assistance (VITA) sites nationwide. VITA sites provide free tax preparation to workers who earn low or moderate incomes and individuals with disabilities, among others. Working families can increase their tax refunds as much as $5,666 through the EITC — money that can be used for boost their savings and assets, a child's education, and other important household and medical expenses.

Goodwill's mission is to provide job training programs and community-based services to people with disabilities, those who lack education or work experience, and others facing employment challenges. Last year, nearly 100 Goodwill agencies promoted EITC or provided tax-related referrals or assistance to employees, members of the public, and the people Goodwill serves through its programs and services.

"Goodwill's VITA sites prepared more than 21,000 tax returns and helped families secure more than $33 million in tax refunds during the 2010 tax season," said Jim Gibbons, president and CEO of Goodwill Industries International. "This tax credit has been vital to helping working individuals better care for their families and build their savings for future expenses such as retirement or college educations."

According to the Center on Budget and Policy Priorities, nearly 25 percent of eligible workers do not claim the EITC each year because they lack awareness of the program, cannot afford costly tax preparation fees, or fear they will lose public benefits by filing. New IRS research shows that workers with disabilities are much less likely to take advantage of EITC and other tax credits.

"When a family claims the EITC, it could mean the difference between their living above or below the poverty line," said Gibbons. "Goodwill wants workers with low and moderate incomes to claim the tax credits they qualify for to increase their financial security, strengthen their families, and invest back into their communities."

Goodwill also advises people to steer clear of refund anticipation loans (RALs), which rank among the most avoidable tax-time expenses. According to the Consumer Federation of America and the National Consumer Law Center, RALs — short-term, high-interest loans — drained $738 million from the refunds of nearly 8.5 million people with low or moderate incomes in 2008.

To learn more about EITC or to see if you qualify, visit the IRS's EITC homepage.

About Goodwill Industries International

Goodwill Industries International is a network of 165 community-based agencies in the United States and Canada with 14 affiliates in 13 other countries. Goodwill is one of North America's top five most valuable and recognized nonprofit brands as well as a leading social services enterprise (Source: Cone Nonprofit Power Brand 100, 2009). Goodwill operates more than 2,500 retail stores and the first and only nonprofit Internet auction site, shopgoodwill.com. Local Goodwill agencies also build revenue and create jobs by contracting with businesses and government to provide a wide range of commercial services, including packaging and assembly, food service preparation, and document imaging and shredding. In 2009, nearly 2 million people in the United States and Canada benefited from Goodwill's career services. Goodwill channels 83 percent of its revenues directly into its programs and services. To find a Goodwill location near you, use the online locator at www.goodwill.org, or call (800) 741-0186. Twitter: @GoodwillIntl. Facebook: GoodwillIntl.

SOURCE Goodwill Industries International