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The Honolulu Advertiser
Posted on: Friday, June 12, 2009

Aloha United Way aided with $3M in tax refunds

Advertiser Staff

Aloha United Way said it helped Hawai'i residents obtain more than $3 million in tax refunds this year through its free tax assistance programs.

The nonprofit on Wednesday announced that it helped file 2,618 returns for local residents filing for the 2008 tax year.

AUW said a large part of the refunds obtained — $1.2 million — came from claiming the Earned Income Tax Credit, a refund of taxes paid by low- to moderate-income working individuals and families. Another $575,000 was from the Child Tax Credit.

Many people are unaware they may be eligible for both credits, which is the reason the agency said it got involved in the tax assistance program in 2005.

AUW in 2006 cited statistics from the federal Government Accountability Office that 28 percent of eligible Hawai'i residents left unclaimed about $30 million in Earned Income Tax Credit refunds in tax year 2002.

However, AUW, which started its program with a state grant and receives volunteer help from numerous individuals and businesses, said this year will be the last year it will provide the free tax assistance.

Another nonprofit, the Hawai'i Alliance for Community-Based Economic Development, will take over the program as of July 1. AUW said it will still collaborate on the Earned Income Tax Credit effort.