New Haven Independent

Lured by the promise of a cash advance, low-income workers often get gouged by sky-high interest rates at paid tax services.

Two groups, both under the “VITA” banner, offer relief by doing low-income families’ taxes for free. They make sure taxpayers take advantage of the Earned Income Tax Credit (EITC) program for the working poor. Both groups honored their volunteer tax preparers with thank-you dinners this week.

The busiest operation was run out of 540 Ella T. Grasso Blvd., coordinated by Ariel Martinez of the New Life Corporation. The group got a grant to run the site through the Coalition for Working Families. They served 2,560 families this year, bringing in over $3.1 million in federal tax returns. That included almost $1.5 million in EITC money — money that is most often spent to pay families’ bills, to put food in the fridge and keep the lights on.

The other VITA program, coordinated by the New Haven Economic Security Coalition, is run on a shoe-string budget, with a bit of funding through City Hall. The volunteer coalition ran four sites throughout the city, at the downtown library, Yale’s Dixwell Learning Center, SAMA on Grand Avenue, and a new site run by STRIVE New Haven. Volunteers helped 260 families earn $900,000 in federal tax refunds, including $310,705 in EITC money.