Community Renewal Good Stories - Yonkers

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Putting Earned Income Tax Credits Back Into the Pockets of EZ Residents

Yonkers, New York, EZ

Promoting EZ incentives for businesses and helping residents access earned income tax credits (EITCs) are major Yonkers EZ initiatives. Partnerships have played a key role in the program's success: the Yonkers EZ staff has been working with many local and national partners, including HUD's Office of Economic Development, to promote tax incentives in the EZ and maximize the injection of funds into the local economy.

Since receiving its Round III EZ designation in January 2002, Yonkers has been holding monthly seminars for local EZ businesses and residents to maximize the impact of tax benefits in the EZ. The one-hour sessions, co-hosted by local banks and businesses, provide technical overviews of EZ tax benefits while also stressing the program's simplicity.

By spring 2004 more than 1,000 people had attended 50 seminars. According to an EZ staff survey of seminar attendees, the city's EZ companies had accessed more than $1.5 million in Federal EZ wage tax credits. The seminars also provide opportunities for EZ staff to develop relationships with the business community and establish a level of communication that otherwise might not exist. The EZ staff provides information about EZ incentives, as well as incentives available through other Federal, State, and municipal programs.

An EITC campaign, developed by Yonkers city and EZ staff, helps EZ residents access EITCs and maximize their tax refunds. IRS-trained volunteers provide free tax-preparation services at the new Yonkers Riverfront Public Library at One Larkin Center in Yonkers. The Volunteer Income Taxpayers Assistance (VITA) program receives generous support from Yonkers Mayor Philip A. Amicone's Office, JP Morgan Chase, and Verizon Wireless.

To publicize the widely underutilized EITC, the VITA site informs eligible EITC recipients of the credit and completes tax returns for free. Filers can elect to file their returns electronically and to have their refunds deposited directly into their bank accounts. EITC can refund up to approximately $4,300 for eligible filers and provides additional income for low-income workers.

VITA is a collaboration of several organizations. A generous grant from JP Morgan Chase funded the purchase of six computers on which VITA volunteers complete the tax returns. Verizon Wireless has agreed to make cell phones available for calls to the IRS, and the Yonkers Riverfront Public Library dedicates two rooms for the entire tax preparation season.

In 2004 the VITA assisted more than 800 taxpayers who received $400,000 in EITCs. With the help of VITA volunteers, more Yonkers residents were able to claim tax credits that put more money into their pockets and stimulated the local economy.

For more information on the Yonkers EZ programs, contact Ed Sheeran at (914) 377-6797.