As we enter tax season, it's essential to recognize the impact that tax refunds have on the financial well-being of countless families. However, despite the potential benefits, many families do not maximize their refund because they are not aware of available credits. In fact, 1 in 5 families misses out on the Earned Income Tax Credit, which results in an additional $2,100 on their refund. 

At United Way, we believe that empowering individuals to make the most of their tax return is a step forward in building resilient and thriving communities. That's why we are committed to providing free tax preparation services to families across our region, including a free online service – myfreetaxes.com with access to volunteers who assist over the phone. 

Through these efforts, United Way's community partners are projected to help prepare taxes for over 2,300 people, leveraging over $4 million in returns. Earned Income Tax Credit refunds make up at least $1 million, providing a necessary tax support. Furthermore, volunteers will spend approximately 5,000 hours working with clients, providing vital support and expertise to those who need it most. 

By offering these services, we hope to raise awareness of the significant role that tax refunds can play in supporting the financial stability of families and the wider community. We’ve created a Free Taxes F.A.Q. to help make tax refunds and tax credits easier to understand.  

The eligibility criteria for free tax preparation services can vary depending on the program or service being used. 

You may not be eligible for free taxes if you require a complicated return, such as a Complicated Schedule D for capital gains or losses, do not have a Social Security Number or Individual Taxpayer Identification Number (ITIN), or need other forms completed before tax filing. For more information on what a VITA tax preparer can and cannot prepare and what documents are needed, please visit this IRS page. We recommend contacting your interested site to confirm eligibility.

Yes! United Way is proud to introduce a new way for small business owners to save on taxes and maximize profit by filing their taxes for free through MyFreeTaxes! 

Available now at www.myfreetaxes.com/selfemployed, the MyFreeTaxes Self-Employed Tax Guides equip entrepreneurs with the information they need to prepare for tax season, file their taxes, and maximize their refunds using free online software. 

United Way created three versions of the MyFreeTaxes Self-Employed Tax Guides to meet the specific needs of general small business owners, gig economy entrepreneurs, and home-based childcare businesses. All the guides are available in PDF and video formats, in English and Spanish. 

This new resource will help ensure all entrepreneurs have access to safe, free, and accurate tax filing services: www.myfreetaxes.com/selfemployed 

It’s important to have all the correct documents for filing taxes at a VITA site or online. Find a list of what you will need for filing taxes here. 

The Earned Income Tax Credit (EITC) is a federal tax credit for individuals and families with low to moderate incomes. The EITC is designed to provide financial assistance to workers who have earned income but may not earn enough to support themselves or their families. 

You may be eligible for the EITC if you are:

The IRS has created an EITC Assistant here to help you calculate if you are eligible. 

The Child Tax Credit (CTC) is a federal tax credit that provides financial assistance to eligible taxpayers with qualifying children. The credit is designed to help families with the cost of raising children and can be worth up to $3,600 per child, depending on the child's age and other factors. 

You may be eligible for the CTC if: 

To receive the full CTC taxpayers cannot make more than: 

The IRS has created a tool to help you determine if you qualify for the CTC here.

The Volunteer Income Tax Assistance (VITA) program is an initiative of the IRS that offers free tax preparation services to eligible individuals and families with low to moderate incomes. United Way provides funding, resources, and volunteer support to local VITA programs, which helps to increase access to free tax preparation services for eligible taxpayers.  

VITA sites are staffed by volunteers who are trained and certified by the IRS to provide free basic income tax return preparation and e-filing services. By supporting the VITA program, we are ensuring that eligible taxpayers in our community have access to free, high-quality tax preparation services and can claim the credits and deductions they are entitled to. This can help to increase financial stability for families and individuals and support the economic well-being of our communities. 

Find your local VITA site here.

How to use a tax return depends on your individual financial situation and goals. However, here are some general ideas on the best ways to use a tax return. 

“People should treat their infusion of cash as a one-time event and adopt “conserve” as their mantra. Managing a tax refund well has, for many people, never been more important,” advises Jim Graham, Quincy Community Action Program (QCAP) financial coach.  

Donate
With your donations, United Way provides financial support to VITA sites including Quincy CAP, Chelsea Connect, JVS-Boston, and Roxbury Center for Financial Empowerment, among others in Boston, Salem, and Lawrence.  

Spread the word
These services are only effective if people know about them so help get the word out! Do you have employees, or program participants who would benefit from free tax prep? This marketing packet will make it easy for you to share about these services on social media.  

Volunteer
Free tax preparation relies on dedicated, trained volunteers who are willing to donate their time during tax season. Most sites recruit their tax preparation volunteers in the summer and early fall.  While tax season is already underway this year, recruitment for next year is just a few months away! Let a site in your community know that you’d like to help next year.  

Learn more about the importance of this work from Abraham, a Boston Tax Help Coalition returning volunteer: 

Commenting on what brings him back to volunteer, Abraham says “The joy!” He knows that for the clients the tax process can be scary, and that there is the fear of the unknown. And he thinks about, “how can we alleviate that?”

He knows that the VITA volunteers have been thoroughly trained through the Boston Tax Help Coalition on assisting with returns similar to what they see every day at sites across the coalition. Confident in the work that he and the other volunteers are doing, and knowing the “return” for the volunteer is just as great as it is for the client, Abraham puts out the call for all to volunteer, “We can always use more people!”