Salt Lake Tribune
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Millions of dollars in tax credits unclaimed
This is an archived article that was published on sltrib.com in 2005, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Each year, Utahns walk away from $50 million to $80 million.

That's the estimated value of earned income tax credits that low-income Utah taxpayers leave unclaimed, despite the availability of free tax-preparation services and some efforts at public awareness.

But forces are combining to kick that awareness up a notch.

The United Way recently won a $150,000 federal grant to fund research quantifying the economic benefits of the tax credits as well as a mobile unit of IRS-trained volunteers who will travel throughout rural Utah to help families fill out their tax forms.

And Murray Democratic Rep. Tim Cosgrove is proposing legislation to hire a statewide coordinator charged with promoting the credits to people who apply for food stamps, welfare and job assistance.

Ranging from $2,600 to $4,300 for a family of four, the tax credit can increase a person's wage by up to $2 per hour, enough to lift some above the poverty line, which is $12,830 for a family of two, $19,350 for a family of four.

"It can mean the difference of going with or without child care or transportation," said Cosgrove. "Working families are eligible. They just don't know about it, because so many fall below the earnings threshold for filing taxes."

For this reason, United Way's Bill Crim has argued for a comprehensive, consistent message similar to those urging people to quit smoking or buckle up.

Toward that aim, United Way will use the grant to complement its existing "Utah Saves" campaign - urging families to use a portion of their tax credits to establish savings accounts, retire credit-card debt or buy a home.

Families are eligible for the tax credit based on their annual income.

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