HUD Archives: News Releases

Kristine Foye
(617) 994-8218
For Release
February 2, 2006

HUD-IRS Partnership Helps Low-Income Working Families Cut Their Tax
Bills and Put Cash in Their Pockets
Thousands eligible for Earned Income Tax Credit don't claim it

MANCHESTER, NH. - Today, officials from the U.S. Department of Housing and Urban Development (HUD) and the Internal Revenue Service (IRS) joined members of the Greater Manchester Asset Building Coalition and members of
the New Hampshire Statewide Earned Income Tax Credit Alliance to launch an outreach initiative to help low-income working families save thousands of dollars on their annual income taxes through the Earned Income Tax Credit (EITC) and other tax assistance.

The Earned Income Tax Credit has grown to be one of the nation's most powerful income supplements for low-
income working families, and is a highly effective work incentive for families with children. Last year, HUD and the
IRS established a partnership to help low-income working individuals and families become aware of the benefits of
the EITC. Many of the residents eligible for the EITC are families and individuals receiving rental assistance through HUD, either by living in public housing or through the Housing Choice Voucher Program, also known as Section 8.

"At HUD we serve people who rely on assistance just to make ends meet, but many of them do not take advantage
of this credit," said Taylor Caswell, HUD's regional director. "Whether saving money for a downpayment on a house,
to pay for necessities or their rent, or to splurge on something a little extra, every dollar counts."

The EITC does not affect eligibility for low-income housing, Temporary Assistance for Needy Families (TANF), Medicaid, Supplemental Security Income (SSI), or food stamps.

According to Cathleen Flynn, IRS senior tax specialist, "One of IRS's important objectives is to assure people get the benefits they are entitled to. By partnering with HUD and all of New Hampshire's EITC Coalition sites, we hope to educate the public about the Earned Income Tax Credit and put more money into the pockets of working families."

On February 1, the Manchester Community Resource Center, located at 177 Lake Avenue, began offering free tax preparation services for families and individuals in the greater Manchester community. Free tax preparation will also
be provided at: Elmwood Gardens, 84 Trahan Street; Salvation Army, 121 Cedar Street; Latin American Center, 521 Maple Street; Prime Time, 195 McGregor Street; Southern NH University, 2500 North River Road; VA Medical Center, 718 Smyth Road; Elliot Senior Health Center, 138 Webster Street. Information on how to contact these sites, and others throughout the State of New Hampshire, can be obtained by calling the New Hampshire Help Line at 1-800-852-3388 (TTY/TDD 603-225-9000).

At the free sites, tax professionals and volunteers work together to prepare and file tax returns electronically, ensuring they are filed safely and quickly. People typically receive their refunds in 7-10 days. Income and family
size determine the amount of the EITC. For example, a working family who earned less than $37,263 in 2005 and
lived with two or more "qualifying" children, can receive up to $4,400 in federal credits.

Last year, more than 7,100 families and individuals in Manchester received the EITC, resulting in more than $11
million. The average EITC for Manchester residents was $1,578. Last year, more than 60,000 individuals statewide received the EITC, resulting in $91 million. The average EITC for residents statewide was $1,507.

During the event, Rosemary Rodriguez, a single mother of one, explained that she had her tax return prepared at the Manchester Community Resource Center last year and received a refund of $3,506, of which $2,604 was the Earned Income Tax Credit.

Thousands more New Hampshire families are eligible for this credit and don't claim it - possibly because they are unaware of this benefit. The HUD-IRS partnership aims to educate the public, particularly lower income families of
the significant tax savings available to them.

The NH Statewide EITC Alliance is unique to New Hampshire. The Alliance brings together groups working on family financial stability throughout the state, and establishes a collaborative effort among these agencies and organizations. Within the Alliance best practices, research, marketing and volunteer recruitment are shared among
the member asset-building coalitions, and most importantly a coordinated effort is provided throughout the state to reach and positively impact EITC eligible families.

This local effort to promote the EITC follows a partnership agreement made by HUD Secretary Alphonso Jackson
and IRS Commissioner Mark Everson in December, 2004. In a joint signing ceremony, the two officials said the interagency agreement will improve services and coordination to reach millions of low-income taxpayers nationwide.

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; 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 as well as enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet and


Content Archived: March 17, 2011