NORTHERN KENTUCKY ASSET BUILDING COALITION MISSION

Through an array of community-based programs the Northern Kentucky Asset Building Coalition is working to help build the assets and increase the economic prosperity of working families and individuals throughout Northern Kentucky.

The Northern Kentucky Asset Building Coalition provides financial education and services, and free tax preparation sites in northern Kentucky to help the underserved build for the future and become economically stable.

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Current Projects of the Northern Kentucky Asset Building Coalition

• Northern Kentucky EITC Awareness Campaign
• Free Tax Preparation Sites for 2007

THE HISTORY OF THE NORTHERN KENTUCKY ASSET BUILDING COALITION

The coalition began with three organizations — Northern Kentucky University, The Brighton Center, and the Internal Revenue Service SPEC Office — who joined together to educate lower-income working families in northern Kentucky about the tax benefits and credits for which they may be eligible and to provide these families with free tax preparation assistance. The coalition has grown to include financial institutions, social service agencies, city governments, and corporations throughout the region. Coalition partners are listed on the Current NKABC Partners page.

WHY WAS THE ASSET BUILDING COALITION CREATED? 

The northern Kentucky region loses an estimated $2.3 million dollars per year in unclaimed Earned Income Tax Credit for its residents (according to year 2001 federal tax returns filed) because over 24% of the taxpayers who qualify for the federal tax credits do not claim the refund for some reason.

The percentage of qualified taxpayers not claiming the tax credits in northern Kentucky is much higher than the national average. Evidence suggests that misinformation about EITC eligibility and length and complexity of tax forms contributes to taxpayers’ failure to file a return claiming the tax credit.

Secondly, over 68% or 14,282 of the eligible recipients in northern Kentucky who claim the EITC lose a significant portion in tax preparation fees and costly refund anticipation loans (RALs) to paid commercial preparers.

Paid commercial tax preparers, who target the taxpayers, can charge $150 or more just to prepare a tax return for the taxpayer to claim the EITC. Getting a "quick tax refund" or "Refund Anticipation Loan" that comes back in a few days often costs hundreds more. Paying the tax preparation fees and and opting for the RAL dramatically reduces the money the taxpayer receives and decreases the potential economic impact for the northern Kentucky region. In several northern Kentucky zip codes, over 40% of the individuals claiming EITC in 2001 paid to have a Refund Anticipation Loan and their tax return prepared. Click link for more information on RALs.

The coalition wants to educate low-income taxpayers in northern Kentucky about the high costs of "quick tax refund" or "Refund Anticipation Loans" and offer an alternative option to the taxpayers and to allow northern Kentucky residents to keep their full tax refund. To help the qualifying taxpayers, the coalition partners have organized several site locations where low-income workers, making less than $36,000, can get free help with tax preparation and receive free financial services (such as opening checking accounts and financial education information).

If you are interested in learning more about the number of northern Kentucky taxpayers who qualify for the Earned Income Tax Credit, click here. The 2002 data is broken down by county, city, number of filed tax returns, number of taxpayers who claimed the EIC, and the number of taxpayers who purchased a RAL.

HOW CAN I FIND OUT MORE ABOUT THE NORTHERN KENTUCKY ASSET BUILDING COALITION?

Visit our "Become a NKU ABC Partner" page for additional information, or to join the Northern Kentucky Asset Building Coalition.

The Problem: Even with a steady job, many working families are struggling to make ends meet. They may be stuck in low-wage jobs due to their education status or past work history. In addition to having limited income, many of these families are not connected to the “financial mainstream.” Some don’t have bank accounts, others may be in debt or have bad credit, and many don’t own a home.

The Solution: The Earned Income Tax Credit (EITC) is a powerful work incentive and antipoverty tool that has benefited millions of low-income families since its inception. The EITC is a refundable credit offered through the Internal Revenue Service to working families that, in 2004, earn less than $35,458.

National estimates indicate that approximately 15% of eligible families do not claim the EITC. Some don’t think they’re eligible. Some families may feel that since they owe too little to have to file that there’s no benefit to them filing at all. Education and outreach are crucial to these families.

The NKABC is working with community partners to create awareness of available federal and state tax credits. For more information see EITC Awareness Campaign.

THE NORTHERN KENTUCKY ASSET BUIILDING COALITION (NKU ABC) FREE TAX PREPARATION SITES FOR 2007 (2006 TAX YEAR)

The coalition will operate 17 free tax preparation sites throughout northern Kentucky beginning in late January 2007. Sites will be open during the regular tax filing period on various dates and times until mid April. See Free Tax Preparation Sites for detailed information on dates, locations, and hours.

If you have questions about the sites, call 859-572-6578.

FREQUENTLY ASKED QUESTIONS ABOUT THE TAX PREPARATION SERVICES

For questions and answers, click here.

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