Wednesday May 4, 2005
Mayor Jerry Abramson announced today the results of Metro Government’s three-year push to help limited-income wage earners apply for additional refunds when completing their federal income-tax forms. By the close of the 2004 tax year this April 15, Louisville families have received at least $10.8 million in refunds over the past three years.
The Brookings Institute completed a study before merger showing areas where our community could improve. The study showed our residents and our community were missing out on $26 million dollars in federal income tax refunds because residents weren’t applying for the Earned Income Tax Credit (EITC). A family of four in Louisville with an income of about $35,000 is eligible for a $4,000 tax credit.
When Mayor Abramson took office, he made it a priority to encourage all Louisville families to apply for every tax refund they deserve.
“In the past, millions of dollars in tax refunds have been left on the table. These overpaid federal income taxes could and should be returned to our residents and reinvested in our community,” Abramson said.
For the past three years, Metro Government partnered with the Louisville Asset Building Coalition to educate citizens about the EITC, conduct workshops about applying for the credit and provide free tax help for residents.
Since the initiative began, Metro Government and the Asset Building Coalition have assisted more than 7,000 residents with tax preparation, resulting almost $11 million dollars in federal income-tax refunds – with half of those refunds coming as a direct result of the tax credit.
Abramson said the total amount of tax dollars refunded to the community is actually higher than the $11 million, as many residents may have taken advantage of the EITC on their own or had others prepare their taxes.
Metro Government will continue working with the Asset Building Coalition to help make Louisville residents aware of the tax credit and how to apply.
“These dollars are so important in our community because these dollars change lives,” Abramson said. “From talking with our residents, we know this extra money is the difference between accumulating more debt or starting a savings account, purchasing a car, saving for a down payment on a home or starting a tuition fund for themselves or their children.”
Results of Louisville Tax-Assistance Program|
||2001 Tax Year
||2002 Tax Year
||2003 Tax Year
||2004 Tax Year|
(through April 1st)