March 23, 2010
HUD OFFERS TAX TIPS FOR EMPLOYERS AND WORKING FAMILIES IN CALIFORNIA, ARIZONA, NEVADA AND HAWAII
April 15th is just around the corner and thousands of businesses around the country will be paying too much money
to Uncle Sam, unaware of the tax savings that are available to them.
The Recovery Act also increased eligibility for working families to receive tax credits through the Earned Income Tax Credit program for the 2009 and 2010 tax filing years. A married couple filing jointly with three children is eligible if their income is less than $48,279 to receive $5,657. A single parent making less than $43,279 would also be eligible
The Department of Housing and Urban Development is releasing a series of tax tips that will help cut the tax burden
of businesses located in certain federally designated areas. Many HUD offices also are partnering with local groups
to assist working families to qualify for the Earned Income Tax Credit.
In California, the areas with business tax incentives include San Francisco, Los Angeles, San Diego, Fresno, Santa Ana, Desert Communities, Parlier and Orange Cove. In Arizona, it includes a portion of Tucson.
In all four states, there is an opportunity for working families to receive an Earned Income Tax Credit that can put money in their family budget even if they pay little or no taxes.
For example, a grocery store owner who hires an employee who lives in Fresno or Santa Ana, California's or Tucson, Arizona's Empowerment Zone can take up to $3,000 off his taxes. A grocery store owner who hires an employee
who lives in one of the Renewal Communities in San Francisco, Los Angeles, or San Diego, can take up to $1,500
off his taxes. The owners of a landscaping company who plan to hire just one summer worker who lives in a
Renewal Community can cut their tax bill by as much as $1,200. These are just two examples of dozens of tax tips. These tax tips not only point to the advantages of doing business in these areas, but will help business owners
HUD also is partnering with the Internal Revenue Service, local housing authorities, nonprofit organizations and local governments to alert working families that they may be eligible for a tax credit that actually puts money into their family budget. Search for information on the income limits and credits by going to the website (http://www.irs.gov/individuals/article/0,,id=150513,00.html).
The EITC does not affect eligibility for low-income housing, Temporary Assistance for Needy Families (TANF), Medicaid, Supplemental Security Income (SSI), or food stamps.
Other tax benefits are available for employers through several additional federal programs. For businesses, there is additional potential $4,200 tax benefit if a new employee hires a youth or a member of a group with traditionally
high unemployment. Welfare to Work Credits provide a credit of $3,500 in the first year and $5,000 the second year for each newly hired long-term welfare recipient.
To learn if your California or Arizona business is in an area eligible for these tax credits, check these maps:
Here are the Renewal Communities and a link to the map to determine if your business is located within its area:
Los Angeles, California
Orange Cove, California
San Diego, California
San Francisco, California
Here are also Empowerment Zones in California and Arizona where tax advantages are available.
Santa Ana, California
Desert Communities (Riverside County)
WHAT IF MY BUSINESS IS OUTSIDE THE BOUNDARIES?
You would still be eligible for a tax credit of up to $1,500 if you hired a new worker who lives within the boundary
of the Renewal Community or Empowerment Zone.
Where can I learn more?
Here's an easy "Tax Tips" for businesses and accountants on Renewal Communities: http://www.hud.gov/offices/cpd/economicdevelopment/library/taxincentivesrc.pdf
Here's an easy "Tax Tips" for Empowerment Zone businesses and accountants: http://www.hud.gov/offices/cpd/economicdevelopment/library/taxincentivesez.pdf
Here's a joint IRS-HUD webcast on the tax benefits: http://www.hud.gov/offices/cpd/economicdevelopment/library/webcasts09172007.cfm
EARNED INCOME TAX CREDIT
For information, and to determine your eligibility, on the Earned Income Tax Credit, the Internal Revenue Service
has established this website:
Several local HUD offices in the region are in the partnership to assist those interested in the Earned Income Tax Credit benefits.
The Phoenix HUD Office is partnering with the Flagstaff Housing Authority (928) 526-0002.
Other partners include:
City of Tucson Community Services Department, Albert Elias, Executive Director (520) 791-4739 partners with
United Way of Southern Arizona. Contact Dan Duncan, vice president, at (520) 903-9000, ext. 810.
Glendale Community Housing Services Department, Erik Strunk, Executive Director (623) 930-2180 partners with
the IRS, our Community Volunteer Program, and AARP. The contact person is Angie Wilkie, Neighborhood Services Coordinator, (623) 930-2915.
Flagstaff Housing Authority, PHA contact is Kurt Aldinger, Director of Public Housing (928) 526-0002 (not able to
get partner's name at this time)
Tempe Housing Authority, Liz Chavez (480) 350-8950 partners with the Tempe Community Council Diane Bennett
at (480) 940-9345.
The Fresno HUD Office partners with United Way of Fresno County, Central California Legal Services and the I.R.S.
to provide VITA / EITC / ITIN / Tax refund help at 27 sites in Fresno City and County. Interested persons can also
call "211" or (866) 559-4211 at United Way, give their zip code and language preference to find the hours at these locations, which are staffed by a wide array of community volunteers and organizations. These partners also have information about the Central Valley Financial Education Collaborative, 'Bank On Fresno' new accounts, housing counseling, and Individual Development Accounts. Many of HUD Fresno's 8 counties from Modesto to Bakersfield
have "211" numbers and other partners who can provide this help.
The HUD Sacramento Field Office worked with the Coalition for Working Families, and 2-1-1 Sacramento to send out brochures to the HUD subsidized multifamily housing communities throughout Sacramento County. An informational flyer and brochures was and mailed out to complexes using a list of properties from Multifamily staff in Sacramento.
Check out this website about the Sacramento area's local EITC efforts: www.sacworkingfamilies.org/
Each year, during April (financial literacy month) the San Diego HUD Field Office is involved with the local Reinvestment Task Force. They help present the Smart Money Summit. That is like an Expo that includes booths of HUD, IRS, housing counseling agencies, and other community agencies that provide free tax preparation assistance. This year's Smart Money Summit and workshops are not yet finalized.
This year on April 10, 2010, at the HOME clinic at the San Marcos Public Library, free tax preparation assistance including EITC will be provided by Housing Opportunities Collaborative. Volunteer attorneys and community tax preparation providers will assist consumers complete their 2010 taxes. HUD provides materials and information at HOME clinics. The San Diego HUD Office will be represented at this particular event.
The Santa Ana Empowerment Zone is partnering with the OC EITC Coalition to host community tax days on March 1 and March 8. Santa Ana is working closely with OC Legal Aide Society with their I-Can internet tax filing program and also working with the OC United Way. Call Sahara Navarro of the United Way at (949) 263-6127 or Laura Pantaleon
of OC Legal Aide Society at (714) 571-5264 for questions.
The Aloha United Way has created a statewide EITC program. The contact is: Susan Tamanaha at (808) 536-1951
or email for more information.
The Las Vegas HUD Office is working with the United Way. They have about 20 sites strategically located. Dial 211 will provide information on locations, appointments, times of information, etc. There will also be an event on April
14th at the RIO from 9 AM to 3 PM.
The Reno HUD Office is distributing materials in partnership with the Community Services Agency Development Corporation (775) 786-6023 and the Reno Housing Authority (775) 331-5138. The local HUD contact is Luthene Andrews, program assistant (775) 824-3700.
HUD is the nation's housing agency committed to sustaining homeownership; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development ad enforces the nation's
fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.