Here's a money question to go with our new national preoccupation with the economy and the height if the 2008 tax-filing season:  What has been the most effective tool for moving families out of poverty in the history of the country?  Answer - the Earned Income Tax Credit (EITC).  In 2006, nearly 21,500 eligible Erie city and county taxpayers received nearly $40 million in earned income tax credit refunds.  Such refunds are available this year for families earning up to $41, 646 and may be worth as much as $4,800 per family.

Erie county has the Erie Free Taxes (EFT) coalition to support the goal of all eligible families receiving the credits they have earned through the work they have performed.  The Erie Free Taxes community partners include the Booker T. Washington Center, Early Connection, the Greater Erie Community Action Committee (GECAC), the St. Martin Center, and WQLN.  Together, they offer a network of free federal, State, and local tax preparation - the Volunteer Income Tax Assistance (VITA) sites.

Just as important as the goal of reaching all eligible tax filers to claim their EITC is the goal of reducing the numbers of filers who diminish the size of their returns by using commercial tax preparation services that charge preparation fees and high interst on instant Refund Anticipation Loans.  Based on national averages, and EITC borrower could expect to pat $900 in fees for a refund loan, electronic filing, check cashing, and tax prep to obtain a $2,150 loan.  Another goal of Erie Free Taxes is to increase the number of local families who are "banked" - who have a regular checking, savings or debit card account relationship with a local bank, according to EFT Director Cheryl Bates.  "Gamilies do not save if they do not have banking relationships."  National statistics note that three of every five people who have bank accounts with direct deposit save regularly.  Progress on these two goals - less refund loans and more bank accounts - will help more Erie county families toward economic self-sufficiency.  For mor information on Erie Free Taxes, please call (814) 454-0843 or visit eriefreetaxes.org .