Legal Aid of NC announces free tax preparation partnership with NCA&T
Posted: 01-30-2009 : GREENSBORO, N.C.

GREENSBORO, N.C. – Legal Aid of North Carolina (LANC) announced that in addition to offering tax preparation at its Greensboro office, it has also partnered with North Carolina A&T State University (NCA&T) to offer free tax preparation for eligible taxpayers in the university community.

"This is a unique opportunity to help families who are reeling from the national economic crisis while involving talented young people in the process," said Esther Dallmann, coordinator of the LANC Tax Assistance Project in Greensboro. "LANC is committed to helping eligible North Carolina workers claim the Earned Income Tax Credits as a means to help them weather the economic crisis and to allow them to build a better future."

While LANC focuses its tax preparation assistance to low-income families who are eligible for the Earned Income Tax Credits (ETIC), NCA&T will also prepare taxes for eligible students and campus employees.

"A&T is proud of its tradition of preparing young people to be effective contributors to society," said Dr. Gwendolyn McFadden-Wade, associate professor of accounting at NCA&T’s School of Business & Economics. "Every student should know how to prepare their own taxes, and we have a duty to empower them to do so."

Also for the first time, eligible North Carolina workers can claim the new North Carolina Earned Income Tax Credit (NC EITC) when they file their 2008 taxes this year. The NC EITC will be worth 3.5 percent of the federal credit. For families with two or more children, the two credits combined can be worth close to $5,000.

"This North Carolina EITC tax credit, the first the state has offered, comes at a time when working families are uncertain about their economic future," said Janet Cowell, treasurer for the State of North Carolina. "Claiming both tax credits they’ve earned through this statewide outreach campaign delivers on the promise that we are here to serve the needs of working families while improving the state’s economy."

According to EITC Carolinas, eligible workers leave an estimated $135 million or more in federal EITC dollars unclaimed every year in North Carolina, costing the state at minimum an additional $200 million in statewide economic stimulus. Many workers may be eligible for the EITC even if they lost their jobs during 2008. In addition to taxpayers who do not claim the tax credit, even more money is lost to working people when they use paid preparers and purchase costly rapid anticipation loans at high interest rates.

The eligibility requirements for both the federal and NC EITC are the same. Taxpayers who earned $42,000 or less may be eligible for free income tax preparation services provided by IRS‐certified preparers at LANC. Families earning up to $41,646 in 2008 will qualify for the EITC, depending on their number of children and their filing status. Single workers and those without children are also eligible.

Workers who do not owe taxes or who are not required to file a tax return are also eligible for EITC, but they must file a federal return to receive the federal credit and a state return for the NC EITC.

To make an appointment for free tax preparation, call the Legal Aid of North Carolina – Greensboro Office, 336-272-0148.

Legal Aid of North Carolina (LANC) is a statewide nonprofit law firm that provides free legal services in civil matters to eligible, low-income residents. LANC serves all 100 counties of North Carolina through 24 geographically located offices across the state. The LANC-Greensboro Office serves clients in Davidson, Guilford, Montgomery, Randolph, Rockingham and Rowan counties and is located at 122 North Elm Street, Suite 700 in downtown Greensboro.

CONTACTS:
Willette Crews (Statewide Coordinator, Legal Aid of NC Tax Assistance Program), Durham, NC, 919-688-6396

Dock Kornegay (Director, Public Relations & Development, Legal Aid of NC), Raleigh, NC; 919-856-2564

ALSO OF NOTE:
According to EITC Carolinas, the federal EITC is the nation’s most effective anti‐poverty measure targeting and moderate income working families. Each year, it lifts 5 million Americans out of poverty—more than half of whom are children. Families earning up to $41,646 in 2008 will qualify for the EITC, depending on their number of children and their filing status. Single workers and those without children are also eligible. Workers who don’t owe taxes or who aren’t required to file a tax return are also eligible but they must file a federal return to receive the federal credit and a state return for the NC EITC. The eligibility requirements for both the federal and NC EITC are the same.