Private tax help.

• Author: Flores, Qiana Torres
• Position: TRENDS & TRANSITIONS

It's tax time, and states like Iowa are finding ways to get the word out about free tax preparation services and the earned income tax credit. With a federal Volunteer Income Tax Assistance matching grant and a little less than $200,000 a year from the Iowa General Assembly, ISED Ventures of Des Moines helps low-income people prepare their taxes and claim the federal earned income tax credit. The federal tax credit is refundable and is designed to help working people get ahead by reducing their taxes. If the credit is larger than the amount of taxes owed, a refund is issued.

The Annie E. Casey Foundation provided the seed money for the tax prep program in Iowa, which began with about 30 volunteers in 2001. In 2012, the coalition had more than 700 volunteers who helped the taxes for more than 11,000 people. Iowa recipients shared a portion of more than $6 million in federal earned income tax credits and $16 million in federal tax refunds. The General Assembly appropriated another $195,678 to continue these efforts in 2013. In the past five years, Delaware, Hawaii, Louisiana, New Jersey and Virginia have funded similar services as well.

Private sector firms such as Walmart, Intuit Inc., and the Computer & Communications Industry Association also help low-to-moderate income taxpayers file their taxes...