With tax season under way, Central Missouri Community Action will again offer the Volunteer Income Tax Assistance program (VITA) to low and moderate income workers.

The VITA program, which began earlier this week on Monday is designed to provide free income tax preparation assistance to families that earn low to moderate incomes and encourages use of Earned Income Tax Credit (EITC), the Child Tax Credit, or the Missouri Property Tax Credit.  

With the help from the University of Missouri’s Personal Financial Planning Department, MU Extension and the IRS, CMCA is able to provide VITA services in Audrain, Boone, Callaway, Cole, Cooper, Howard, Moniteau and Osage counties through the efforts of volunteers.

Last year, the VITA program saw an increase of 14 percent more individuals using the free service than the previous year.

“It was a critical year for VITA,” said Jennifer Black, financial education coordinator for CMCA. “Our clients really needed to keep 100 percent of the return for themselves so they can meet their ever-increasing expenses.  Many of our participants would pay up to $300 to have their taxes prepared by a local firm. In addition, the anticipation loans can cost hundreds of dollars more than that. The VITA program helps them get the maximum financial relief possible while also using the fastest methods possible so people can have their refunds within a few weeks.”

This year, CMCA expects to see a similar increase as a result of program expansions through the American Recovery & Reinvestment Act (ARRA). These expansions include tax law changes that have increased the number of people eligible for tax credits, as well as increased the amount of the credit received per eligible family.

CMCA has also hired additional staff to support the VITA program through ARRA funds. This increased capacity will enable CMCA to provide services to the increasing number of people in mid-Missouri that qualify for tax credits for the first time.  

Another benefit to this program is the impact it has on the economy within the communities it serves. Dianna Moore, director of economic development for CMCA, says that “this program has the ability to stimulate local business activity by giving our clients an opportunity to have some disposable income. When we think about the current climate for businesses, this extra income can really benefit the local economy.”

The Howard County Family Resource Center hosted a media event Thursday to kick off its 2010 tax season and promote awareness of the tax credits available to mid-Missourians.

At the event, Howard County treasurer Susan Keyton read a proclamation from the Howard County commission. The proclamation, signed by presiding commissioner Lowell Eaton, designated the month of February as EITC Awareness month.

The EITC can make life a little easier for workers struggling to make ends meet in today’s tight economy—up to $5,600, or more, easier. Yet, the IRS estimates one in four eligible taxpayers overlook this valuable tax credit because they don’t know it exists.

Many people will qualify for EITC for the first time this year because their income declined, their marital status changed, or they added children to their families. Eligibility for the credit has also expanded as a result of the ARRA.