Home > Press > RECENT PRESS RELEASES > January 18, 2012 - VOLUNTEER INCOME TAX ASSISTANCE PROGRAM PRESS RELEASE

     

For Immediate Release

CITY OF NEWARK JOINS WITH NEWARK NOW AND KEY PARTNERS

TO KICK-OFF FREE TAX ASSISTANCE PROGRAM FOR LOCAL RESIDENTS

Volunteer Income Tax Assistance program provides free tax preparation

services to low- and moderate- income Newark families;

State’s largest program helped 4,000 households obtain $6.3 million in tax refunds in 2011;

Newark Now will expand VITA program to Passaic, Hudson, and Bergen Counties

Newark, NJ – January 18, 2012 – Mayor Cory A. Booker, Newark Municipal Council President Donald M. Payne, Jr., NYC Department of Consumer Affairs Commissioner Jonathan Mintz, SPEC Territory Manager Elizabeth Hollingsworth of the IRS, and Newark Now President and CEO LaVar Young, launched the 2012 tax season with the opening of Newark’s six Volunteer Income Tax Assistance (VITA) sites, including a location in City Hall’s Room B-29, at a City Hall press conference today. The Newark Now VITA program is the state’s largest, and will expand this year to Passaic, Hudson, and Bergen Counties.

Launched by the Internal Revenue Service in 2005, the Voluntary Income Tax Assistance (VITA) program exists to encourage people in urban areas to take advantage of the earned income-tax credit. The VITA program and Refund NOW – rapid anticipation loan program programs provide free tax services available to low- and moderate- income New Jersey families who earn less than $50,000. The VITA program was established to help residents receive the maximum tax credits and refunds allowable by law. Other partners in this initiative include the New Jersey Treasury Department’s Division of Taxation and the Newark Asset Building Coalition.

“Over the past eight years, Newark Now’s VITA program has put millions of dollars back into the pockets of our city's low income and single household families. This year, the City of Newark is once again joining forces with Newark Now and our other community partners to continue to offer this vital program and I am excited to announce that thanks to a federal grant, our VITA services will now be offered to residents who live in three Northern New Jersey counties. I commend all of our VITA volunteers for their service and commitment to financially empowering all of our residents who are in need," said Mayor Booker.

“It’s an honor to be here in this capacity to kick off one of our city’s most important programs. I would like to thank all of the community partners and volunteer tax preparers for doing a phenomenal job in providing this free tax preparation service. Your commitment and dedication is financially empowering our community,” said Municipal Council President Donald M. Payne, Jr.

This year, VITA added new locations in Passaic, Hudson, and Bergen Counties, in collaboration with the Internal Revenue Service, who asked VITA to target zip codes with a high unmet need for Earned Income Tax Credit. There will be six sites in Paterson, two in Jersey City, one in Fairview, and one in Guttenberg. The program is expanding because Newark Now was approached by the Internal Revenue Service to grow the VITA presence in ZIP codes with a low number of people taking advantage of the EITC. Newark Now has been very successful in improving the rate of EITC applications in Newark – there is only one ZIP code left in Newark below the IRS benchmark and that is 07112, where VITA will have a site. Newark Now partnered with agencies in target ZIP codes to help them improve and expand.

“Newark Now has done such a great job with the Volunteer Income Tax Assistance preparation sites and financial literacy, which is why we wanted to partner with them and give them access to our site, for many of the low-income families who come to us in need of resources. This program is really a blessing to help our Hudson County families who are in need to save and get back sometimes thousands and thousands of dollars. We’re excited to partner with Newark Now and are urging everyone to take advantage of this program,” said United Way of Hudson County Director of Resource Development and Marketing Benjamin Dineen.

During the event, Newark Now also announced a continuing partnership with SaveUSA, a program to encourage residents to open savings accounts by providing 50 cents in matching funds for every dollar saved. Newarkers utilizing VITA’s services will have the opportunity to participate in SaveUSA by directing $1,000 or more of their refund into a savings account. After a year, SaveUSA will provide a 50 percent match of all savings in the account. Last year the program opened more than 350 bank accounts for tax filers. The non-profit think tank, MDRC, is driving the SaveUSA program.

As many Newarkers continue to contend with the effects of the recession, VITA aims to help residents take full advantage of various tax incentives, like the federal Earned Income Tax Credit, and ensure they get the most out of their refund.

“Since 2004 Newark Now’s VITA program has prepared over 18,000 income tax returns this has resulted in over $25 million in federal and state returns for those using these services,” said Newark Now CEO and President Young. “We are proud to continue to provide this viable service and also take the opportunity to educate residents about EITC (Earned Income Tax Credit) and the Asset Building account programs we offer. This year we are extremely excited about our expansion which will allow us to partner with United Way of Passaic County, United Way of Hudson County, St Paul’s Community Development Corporation, Franciscan Community Development and North Hudson Community Action Corp to provide the VITA program in Passaic, Hudson and Bergen counties, and effectively reach additional residents with this program.  We are looking forward to a great tax season.” 

VITA offers Newark residents free, professionally certified tax preparation assistance and legal aid. The program has helped more than 14,000 residents in its six years of existence. Newark Now’s VITA program is the largest in the state of New Jersey, and in 2011, Newark Now’s VITA program prepared over 4,000 tax returns, returned $6.9 million in refunds to tax filers, and saved over $700,000 in filing fees.

VITA also assists high school and college students to complete their Free Application for Federal Student Aid (FAFSA). Last year, Newark Now assisted more than 400 students with the FAFSA form. In 2012, VITA hopes to increase the number of residents it serves and the amount of refunds it generates. 

Residents should bring to VITA sites the following:

• Personal ID
• Social Security cards, and dates of birth for taxpayer, spouse, children, and other dependents you are claiming.
• Amount of 2011 payments for student loan interest, child care expenses, and college tuition.
• All W-2, 1099, and 1098 statements.
• Copy of 2010 Income Tax return, if possible.
• Any other tax-related documents you have received.
• Proof of bank account for direct deposit.

The VITA team set up operations in City Hall’s Room B-29 and immediately began seeing residents. Rutgers-Newark Senior Ibrahim Koroma explained why he volunteered to serve with the VITA program. “I’m an accounting student and one day at the university, I saw a flier in the hall and called to volunteer. I’ve always wanted to give back to the community and it’s very fulfilling to be able to help other residents save money,” he said.

Newark resident Myron Randall found out about the VITA program as a participant in the Fathers Now program. “I always had a private preparer do my taxes, but this is free, so I’m looking forward to working with a Newark Now tax preparer. The City of Newark is doing great things and this is a fantastic program. I encourage everyone to take advantage of it,” he said.

Another resident, Theresa Ellis, said, “I used to pay $400 to get my taxes prepared. Now I’ve gone to free tax preparation and the catch is that you get more information and more money back.”

VITA is operated by Newark Now’s Financial Empowerment Center (FEC), which directly connects thousands of Newarkers annually to important governmental, financial, and legal services.   In addition to running VITA, FEC provides benefit screening and assistance with public benefits, as well as aides residents in finding emergency funding. The FEC offers Newark residents assistance with finding free or discounted prescription drugs through the innovative program Newark Rx.  Finally, it aids Newarkers and businesses to become and stay green through a new effort that provides free and low cost energy solutions.

For more information or to volunteer with Newark Now VITA, please call 973-624-FREE (3733) or email taxes@newarknow.org. For information about any City of Newark program or policy, contact the Non-Emergency Call Center at (973) 733-4311.

-NEWARK-

Contacts:         Press Information Office – (973) 733-8004

E-mail: Pressoffice@ci.newark.nj.us

Newark Now:

Dreena Whitfield – (908) 913-0638

Dreena@whitpr.com

About the City of Newark, New Jersey

Newark, commonly referred to as Brick City, is the third oldest city in the United States and the largest in New Jersey, with a population of more than 280,000 people. Newark sits on one of the nation’s largest transportation super-structures including an international airport, major commuter and freight rail lines, major highway intersections and the busiest seaport on the east coast.

With a new Administration as of July 2006, Newark continues to see signs of a strong revival. Its population showed growth in the most recent census. Its six major colleges and universities are further expanding their presence. The rate of production of affordable housing has doubled, and new businesses are moving in. There is still much work to be done but Newark is on its way to achieving its mission: to set a national standard for urban transformation.

About Newark Now
Newark Mayor Cory A. Booker founded Newark Now in 2003 to provide Newark residents with skills, tools, and support to transform their neighborhoods.  Today, Newark Now is an intermediary organization that partners with municipal government, residents, grassroots organizations, and the philanthropic community to catalyze the achievement of significant positive outcomes throughout the city. The organization channels the efforts and energy of the grassroots community to improve safety, economic independence, and civic participation. www.newarknow.org

For more information on the City of Newark, please visit our website at www.ci.newark.nj.us

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NEWARK NOW VITA SITE LOCATIONS & HOURS OF OPERATION