SAULT STE. MARIE - On Tuesday, Jan. 17, Soo Co-op Credit Union launched a Web-based program to provide low-to moderate-income individuals and families with free access to file for state and federal income tax credits and refunds. These include the federal Earned Income Tax Credit, which can be as high as $4,400, according to a press release from Soo Co-op Credit Union.
Dubbed "Just file it! We'll help: Free tax preparation resources for those who need it most," the program is available from the credit union's Web site www.soocoop.com.
"More than $200 million in federal tax refunds go unclaimed in Michigan annually by the people who need it most - low-income families and individuals," said Dan Hewitt, president of Soo Co-op Credit Union.
"Further, many low-wage filers use tax preparation services and assume refund anticipation loans to access income tax refunds. These services often charge excessive fees and outrageous interest rates at the expense of those who can least afford it," Hewitt, said.
The Legal Aid Society of Orange County, Calif. developed the technology backbone of the program. The Michigan Credit Union League, a statewide credit union trade association, underwrote the cost of developing the state income tax software in conjunction with the Legal Aid Society of Orange County, Calif., and the University of Michigan's Michigan Poverty Law Program.
There are a variety of federal and state tax credits in addition to the Earned Income Tax Credit that can benefit low-to moderate-income individuals. Additional federal tax credits include the Child Tax Credit and the Federal Child and Dependent Care Credit. Michigan tax credits include the Home Heating Tax Credit, the Homestead Property Tax Credit, and the Child Deduction. These credits are available to those who file income tax returns and those who are exempt from filing requirements, according to the press release.
"It's money that families can use to pay high utility bills, put food on the table, move into better housing, invest in education, or save for the future," Hewitt, said.
