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Students help low-income workers get tax break
1:58 p.m., April 13, 2006--UD students are helping low-and moderate-income Delawareans prepare their taxes by informing them if they are eligible for the federal Earned Income Tax Credit (EITC) under a program coordinated by the Nehemiah Gateway Community Development Corp. (NGCDC). As many as 20 percent of all Delaware families that are eligible for the EITC don't know it, or if they do, they don't know how to apply for it. EITC is a refundable tax credit that supplements the earnings of low- and moderate-income workers making $40,000 a year or less for a one-person household. For more information, visit NGCDC's web site at [www.nehemiahgateway.org/]. Since 2003, NGCDC has been coordinating the Delaware Earned Income Tax Credit Campaign. NGCDC brings public, private, faith-based and nonprofit groups together to promote awareness of the EITC, provide free income tax preparation and encourage savings and uses for the refunds that can help increase economic self-sufficiency. UD accounting students have been involved since the beginning. “It's a refund that rewards work,” Mary Dupont, NGCDC executive director, said, and some low-income families could be eligible for as much as a $4,400 refund. “It can increase a family's income by 40 percent. But, if a family is eligible for the EITC but doesn't apply, the money goes back to the U.S. Treasury. The more volunteers we get the more people we can help, that's the bottom line,” she said. Margo Trovei, a senior accounting major, has been helping low-income taxpayers prepare their tax returns at the Newark Free Library since February. She counsels twice a week. “The people who come in have been very nice. The experience has been great and will help me when I start my auditing job with Ernst & Young in Philadelphia in October,” Trovei said. The first year, 250 volunteers prepared 2,847 returns and opened 180 bank accounts for eligible workers in 12 locations statewide. In 2004, 400 volunteer tax preparers served 4,800 workers and opened 112 savings accounts for first-time savers. In the 2005 tax season, 8,000 taxpayers were served and new savings accounts were opened for 100 workers. This year, students from UD's Alfred Lerner College of Business and Economics and from the College of Human Services, Education and Public Policy are counseling in two of NGCDC's 23 locations across the state. Dupont explained that when NGDCD started the EITC program in Delaware, e-mails were sent to UD's accounting students. She said they expected a few to respond, but instead 60 or 70 students came to the informational meeting and filled out applications. Because the work requires a substantial commitment from students, including eight hours of training leading to certification by the Internal Revenue Service and counseling at least three hours a week for 12 weeks, fewer actually became counselors. But, the University's participation has helped reach many more families, Dupont said. This year, Jack Markell, state treasurer, became involved and set up meetings with Delaware's universities. Dupont said UD President David Roselle was the first to commit to the program. As a result, this year, UD, Delaware State University and Wilmington College will offer three credit hours to students who take the NGCDC/IRS courses and participate in the program. “When President Roselle agreed, I thought it was a real success story to have a school the caliber of UD join us,” Dupont said. She said Kent St. Pierre, professor of economics and chairperson of the accounting and MIS program at UD, has been extremely supportive. “He sends the e-mails to accounting students and speaks to them in class about the program. The response has been great,” Dupont said. St. Pierre said he was eager for his students to get involved with the program because “it's the best kind of service learning they can do.” “Not only are they honing marketable skills, but, they are helping people at the same time. They get to see more of life and experience a sense of purpose,” he said. This year, 28 UD students signed up and 15 are counseling, Dupont said. “It's a great service. Doing taxes costs a lot of money, and we are providing the same service as professional tax consultants,” Jonathan Ortiz said. Ortiz is a senior and will be working for Studley Inc., a commercial real estate services firm, after he graduates in May. Ortiz said at first, he wanted to do tax counseling for the real-time experience. “Learning how to do taxes is something you can use for the rest of your life,” he said. But, after he started counseling at the Newark Free Library, he began to see its affect on the people who came in. “I worked with an older couple whose income was very low, and they got a 75 percent refund,” he said. “Some people have been so happy, that they jump up and shake my hand and say 'Thank you, so much.' “Volunteer work makes you feel good,” Ortiz said. Article by Barbara Garrison |
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