This tax season United Way of Olmsted County Financial Stability Partnership once again joined with the long-standing free tax preparation services provided by AARP Tax-Aide Program to promote free tax preparation in Olmsted County. Other partners include The Salvation Army. The Rochester Senior Center, and Hawthorne Education Center as well as the Internal Revenue Service and the Minnesota Department of Revenue.

AARP Tax-Aide Program had five tax sites in Olmsted County that were located in Rochester, Eyota, and Stewartville. These sites provided free tax preparation for low- and middle-income families. 2,256 federal tax returns were filed by AARP Tax-Aide counselors; 36% of the returns filed were eligible for the Earned Income Tax credit (EITC). An additional 1,198 tax returns were filed and included state only, prior year, and amended returns.

EITC is the largest and most effective federal aid program for low- to moderate-income workers.  For many eligible families, the EITC can increase their annual income by as much as 15 percent.

Recognizing that free tax preparation services and EITC’s potential economic benefit to both families and communities, the Financial Stability Partnership supports educating families about the availability and benefits of the EITC and providing support services, such as free tax preparation, to facilitate receipt of the credit as well as the importance of being “banked.” Unbanked individuals and families were referred to US Bank and First Alliance Credit Union to set up an account prior to their tax appointment to take advantage of direct deposit refunds, getting their refund faster.

When combined with the Minnesota Working Families Credit, an estimated $1,138,175 in tax credits was returned to Olmsted County households though AARP Tax-Aide’s free-tax preparation sites. Because these services were provide without charge, families and individuals received more of the dollars for which they qualified.

Further, economists suggest that every increased dollar received by low and moderate-income families has a multiplier effect of between 1.5 to 2 times the original amount, in terms of its impact on the local economy and how much money is spent in and around the communities where these families and individuals live. Using the conservative estimate, for every $1 in EITC funds received, $1.50 ends up being spent locally.

Free tax preparation is still available for filing property tax and rent credit. Even if you don’t pay taxes, you may still qualify for these credits. You can even sign up to file a regular or back year tax return. Call United Way’s 2-1-1 or 507-287-2000 to set up an appointment.