Gateway Eitc Community Coalition

GECC is dedicated to strengthening the financial security of low income families by providing free income tax preparation, increasing utilization of the Earned Income Tax Credit (EITC), and promoting the use of tax refunds for saving and asset building.

The EITC is a tax credit for low income working families and is intended to encourage work and help parents meet their financial responsibilities. No federal program lifts more children above the poverty line, yet last year an estimated $49 million in EITC monies went unclaimed in the St. Louis area. Often those eligible for this tax benefit do not claim it because they are not aware it exists or do not realize they qualify.

Complex forms, fear of mistakes, and hope of receiving refunds faster keep many EITC recipients from preparing their own returns. Of those who claim the EITC, an estimated 70 percent file their returns using a paid preparer. The use of paid tax preparation services significantly decreases EITC benefits. Tax preparation drains an average of $260 from the pockets of those most in need.

Paid preparers often use predatory tactics to lure low income taxpayers into their offices. Some offer faster refunds, special pricing, coupons, high cost loan products, and deferment of preparation fees. These offers seem like a good deal to many low income taxpayers who fear they can't afford preparation fees and don't know they qualify for free tax preparation services. In addition, it is difficult for taxpayers to get an upfront price for services making it impossible to comparison shop or know how much tax preparation will cost them.