A new tax season is here and the United Way of San Diego County, 211 San Diego, and the San Diego County Earned Income Tax Credit Coalition are providing information on tax credits and free tax preparation for low-to-moderate-income individuals and families in San Diego County.
The Earned Income Tax Credit (EITC) is a refundable tax credit based on income, marital status, and number of children designed to reduce the tax burden on families and keep them out of poverty. The EITC is considered the largest anti-poverty program in the nation.
The EITC helps families and individuals that qualify reduce the taxes they owe or increase their refund so they can put more money toward rent, school tuition, utilities, groceries, and other important expenses. Combined with the state CalEITC and the Young Child Tax Credit (YCTC), taxpayers can receive hundreds or even thousands of extra dollars back on their taxes.
According to William York, President, and CEO, of 211 San Diego, there are already 5,700 appointments. Those who call 211 San Diego are able to receive support in over 200 languages.
“No one should leave this money behind,” York Said. “My staff is still surprised at the number of people after the tax preparation doesn't know about it—that’s kind of aggravating.”
Individuals and families earning less than $60,000 per year may qualify for free tax filing assistance, as well as qualify to claim federal tax credits. Individuals and families earning $1 - $30,000 per year may be eligible for additional state tax credits. In 2021, Governor Newsom and the California State Legislature expanded the CalEITC and YCTC to all California tax filers, including undocumented Individual Taxpayer Identification Number (ITIN) filers who meet the other eligibility criteria.
That change helped more than 3.6 million Californians and their families recover over a billion dollars, according to York.
“This is the tax break for everybody,” said Congressman Scott Peters.
According to Peters, anyone who earns less than $73,000 in 2022 is eligible to file taxes for free by using the IRS website, using commercial software, or contacting one of the many tax assistance centers known as Volunteer Income Tax Assistance (VITA) sites, such as 211 and at the YMCA. Volunteers at tax assistance centers will help people determine if they qualify for credits, like the Child Tax Credits, the American Opportunity Tax Credit, and the EITC, among others.
Millions of people qualify for the EITC each year, but about 20% of eligible taxpayers don't claim it, according to the IRS.
“That's a lot of money people are leaving on the table because they're just not aware. The credit is worth up to $6,935. So a lot of money can make a big difference for individuals, individuals, and families, especially during times like these,” Peters said.
As a young adult, San Diego resident Jessica Mason recalled being terrified of the IRS and the Franchise Tax Board.
"I never wanted to file my taxes. I avoided it at all costs," Mason said.
Mason said she discovered her identity was stolen when she filed her taxes for the first time.
"Dreams For Change paired me with tax advocate services and legal aid services in San Diego. With the help of those organizations, I got everything situated," Mason said, adding she has since been volunteering with Dreams for Change. "With the help of the EITC and the Young Child Tax Credit, my sister and I, who are both single mothers, are getting ready to purchase our first house."
Individuals and families can call 2-1-1 to see if they qualify for the federal EITC, the CalEITC, and the YCTC. If you are eligible for free tax preparation, 2-1-1’s Community Connectors can schedule an appointment for you. For more information about available tax credits, visit 211sandiego.org/taxes or call 2-1-1.
Dreams for Change and VITA sites throughout the county need volunteers this tax season to help people file their taxes for free. The organization can train you to become an IRS Certified Tax Preparer. For more information on how to get involved visit volunteer.uwsd.org.
