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Community action agencies are celebrating 50 years of the Earned Income Tax Credit. On average, eligible taxpayers received $2,743 from the credit in tax year 2023, according to the Internal Revenue Service; photo by Vidal Balielo Jr. on Pexels.com

Expanded tax credits, free tax service help Mass families get ahead

Community action agencies in Massachusetts called the state’s expanded tax credits “powerful antipoverty tools” and they are offering free tax prep services to help families get ahead.

The state’s Earned Income Tax Credit grew to 40% of the federal rate last year, while the Child and Family Tax Credit is now $440.

Clare Higgins, executive director of Community Action Pioneer Valley, said it means more money in working peoples’ pockets, helping them pay for child care, transportation, diapers and rent.

“It’s just amazing when somebody realizes that this refund really can change their circumstances,” Higgins observed.

Higgins pointed out the Volunteer Income Tax Assistance Program returned more than $1 million last year to Hampshire and Franklin counties alone. Tax prep volunteers noted up to 20% of families who qualify for refunds do not access them, making their work even more important.

Expanded tax credits helped cut childhood poverty in half during the pandemic. Studies show direct cash payments can improve the health of mothers and infants, as well as educational outcomes for children.

Joe Diamond, executive director of the Massachusetts Association for Community Action, a coalition of community action agencies which helps run half of the 80 tax assistance sites statewide, said benefits are well understood by the loyal volunteer accountants, who make the program work.

“They are folks who are living in the community,” Diamond emphasized. “They are accounting students and others, who see how important and how powerful helping people do their taxes can be and how powerful the resources can be.”

Diamond said volunteers and agency staff not only help people get their tax refunds but gain financial empowerment and budgeting skills. He added it takes federal and state funding to keep the network stable, from which the local communities benefit.

by Kathryn Carley, Commonwealth News Service

Kathryn Carley began her career in community radio, and is happy to be back, covering the New England region for Public News Service. Getting her start at KFAI in Minneapolis, Carley graduated from the University of Minnesota and then worked as a reporter for Minnesota Public Radio, focusing on energy and agriculture. Moving to Washington, D.C., she filed stories for The Pacifica Network News and The Pacifica Report. Later, Carley worked as News Host for New York Public Radio, WNYC as well as Co-Anchor for Newsweek’s long running radio program, Newsweek on Air. Carley also served as News Anchor for New York Times Radio. She now lives near Boston, MA.

Languages Spoken: English

Topic Expertise: education, environment, nuclear energy

Local Expertise: Massachusetts, Rhode Island, New Hampshire, Maine, New York City, Wisconsin, Minnesota

Demographic Expertise: public schools, families, children, nutrition

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