Sen. Vitelli introduces bill to help more Mainers access tax help

Posted: May 19, 2021 | Senator Vitelli, Taxation

AUGUSTA — On Tuesday, Sen. Eloise Vitelli, D-Arrowsic, introduced a bill to help more Mainers get the most out of their tax return by providing support to CA$H Maine. LD 1651, “An Act To Support Working Families through Outreach and Education about Tax Credits for Persons of Low Income,” was the subject of a public hearing before the Legislature’s Taxation Committee. 

Sen. Eloise Vitelli

“As we’re all aware, the pandemic presented serious financial difficulties for many Mainers, but it did not affect all of us equally. Mainers who were already struggling financially and those who work low-wage jobs were disproportionately affected by COVID-19’s toll on our economy,” said Sen. Vitelli. “As we look for solutions to help these folks get back on their feet, education about the tools and resources that are out there will be critical.”

LD 1651 would make financial tools, education and resources available to more Mainers by providing funding to CA$H Maine.

“Central to CA$H Maine’s services is free tax preparation. From 2003-2020 CA$H Maine has filed more than 53,000 federal and state tax returns and helped clients claim more than $80 million worth of federal tax refunds including more than $28 million in Earned Income Tax Credit,” said Janet Smith with CA$H Maine, in testimony supporting the bill.

Though the EITC is worth an average of $2,107, each year about 20% of eligible Mainers fail to take advantage of it. That’s money left on the table, thanks in large part to a lack of awareness and the complexities of eligibility, with one-third of the EITC eligible population changing every year.

The bill is also supported by United Way of Maine and Maine Equal Justice.