Free services, under-used tax credit could help alleviate prep cost increases

We all have to pay taxes, but with costs having risen for return preparation to the tune of 8.3% since 2022, there are ways taxpayers can save money.

“It seem like they take more money than you get back,” said Theresa Boles, a Chicagoan who’s been paying taxes since the 1970’s.

“I went to H&R Block a couple years ago and  they charged me $270. Just for my taxes!  It was just a bit much. They took theirs off the top. So it was just it was difficult,” said George McCormick, a security guard at Roosevelt University.

Both Boles and McCormick are getting their taxes done for free this year at Ladder Up- a non-profit tax assistance program.

“This is their money they're eligible for, and they shouldn't have to pay for unnecessary fees, or even fees to determine if they're eligible for credit, they should just receive every bit of their income,” said Phyllis Cavallone-Jurek, executive director of Ladder Up.

The non-profit helped get area taxpayers more than $19 million in tax refunds between 2022 and 2023- with the average refund coming in at around $2,000.

“It's usually the largest check they receive all year. This is the time to catch up on bills, they pay medical, they pay housing, sometimes those with children, this is the time of year that they go in, they buy some extra clothes or supplies that they might need for school. It's very important for them,” said Cavallone-Jurek.

But year after year, there’s one specific tax credit that Cavallone-Jurek says many taxpayers don’t realize they qualify for.

“According to the IRS, one out of five people do not access the earned income credits because of one reason or another,” said Cavallone-Jurek.

The EITC Is aimed at low-to-middle income workers, earning less than $64,000 per year.

“Maximum credits for having no children [is] $600 to over $7,400 for three or more qualifying children,” said Cavallone-Jurek.

What's more, the state of Illinois is now matching that federal EITC tax credit by 20%. According to the Pritzker administration, more than 53,000 Illinois residents claimed the federal earned income tax credit last year, but didn’t claim the state earned income tax credit, leaving nearly $25 million dollars on the table.

“They don't even know that it's out there or they feel they don't meet the minimum requirement to file and so they leave it on the table,” said Cavallone-Jurek.

After a few short hours working with the staff at Ladder Up, the anticipation is over for Boles and McCormick, as they are both getting refunds.

“A little bit. Not much, but a little bit. That's good news,” said McCormick.

Both are getting tax refunds, and although it’s a little lower than they would’ve liked, they’re happy they at least get to keep all of it.

“Everything worked out perfect. Usually within like three weeks or so I get my taxes back.
They do an amazing job, they do an amazing job,” said Boles.

One thing to keep an eye out for: staff at Ladder Up tell us they’ve seen some W-2 forms that have a QR code on the back that takes you to a paid tax preparation website. They want people to know you do not have to pay for that service, because you could qualify for a free tax prep service like the one at Ladder Up.

The Ladder Up free Tax Prep program is available on a walk-in basis for:

• Families and individuals earning up to $64,000 per year $32,000 for individuals  
• MUST be a Full-Year Illinois Resident (Ladder Up does NOT prepare other states, military personnel, and/or partial-year residents).
• Taxpayers filing a joint tax return (married) must BOTH be present

TAX SITE PROCESS:

1. At the TAP site, you’ll first meet with an intake volunteer who will review your documents and confirm that you are eligible for the service.
2. Once you complete the intake process, you will work with a trained volunteer tax preparer who will prepare your tax return for FREE.
3. Review and sign your taxes. We will file your taxes electronically or as a paper-file.

To find the nearest Ladder Up location, visit: https://www.goladderup.org/locations/