An advocacy coalition for low-income Utahns says as much as $82 million was left on the table because people didn't apply for the earned income tax credit when they did their returns in 2003.
With the 2004 filing deadline a little more than a month away, the coalition fears a similar pattern could emerge, with as many as 36 percent of eligible Utahns failing to claim the EITC.
"It's unbelievable," said Martha Wunderli, chairwoman of the Growing Assets and Independence Now Coalition, an advocacy group that partners nonprofits with business organizations, governmental entities and learning institutions. "This is money that could help a lot of families."
To that end, the coalition is trying to get the word out about the EITC, which can boost people's returns an average of $1,700 or as high as $4,000, depending on income levels.
Free tax assistance in filing returns and also determining EITC eligibility is being offered to the low income throughout the state at a number of locations, which can be determined by calling 211. Sites include the Tooele Senior Center, the Sunday Anderson Westside Center in west Salt Lake and the Columbus Senior Center on 400 East and 2231 South.
Preston Cochrane, whose AAA Fair Credit Foundation is part of the coalition effort, says the goal of advocates is to direct some of those realized windfalls in tax refunds to a savings account.
"People at lower income levels often want to save but can't," he said, adding a good-sized check from the IRS often comes with the temptation to splurge rather than climb out of debt or save for future emergencies.
"By allocating some to a 401(k) or another account, it makes saving easier for people in the beginning."
But Cochrane said as many as 59,000 people in Utah in 2003 who may have been eligible failed to claim the credit. "That's just in the state of Utah. That is a lot of money that is going unclaimed."
Bill Brunson, a spokesman with the IRS, said he suspects many filers fail to pursue the possibility of eligibility for the EITC because they simply don't know about it.
"Awareness is always an issue," Brunson said. "We are also finding that some people think they qualify, but they may not."
Trained tax preparers at the Volunteer Income Tax Assistance sites or sites staged by AARP can help people determine EITC eligibility, which is also spelled out on the IRS Web site at www.irs.gov by clicking on the EITC assistant.
The level of income determines eligibility and changes depending on household size and the number of children.
E-mail: amyjoi@desnews.com