Local Tax Help Events

It's that dreaded time of the year again--tax season--and W-2s are likely coming to a mailbox near you. Here are a few tax-related events and preparation programs happening in the borough to help you get one step closer to that refund check.

• For those in the nonprofit field: Jewish Community Relations Council and Hostos Community College will be hosting an informative seminar titled “The New 990: Friend or Foe?”  Cost is $10 by cash or check, paid on the day of the event. All checks can kindly be made out to JCRC. Breakfast served at 8:30. RSVP to Adeline Medeiros, medeirosa@jcrcny.org, 212-983-4800 x122 or go here. 
• Ridgewood Savings Bank is offering tax prep help on Saturday, Feb. 19 from 10 a.m. to 4 p.m. at the branch at 3445 Jerome Ave. Call the following number for an appointment:  718-881-3430 
• The University Neighborhood Housing Program is doing free tax prep help on the following dates: Feb. 9, Feb. 19, Feb. 23, March 2. For an appointment, call 718-933-2359.
• SeedCo and Phipps CDC are offering tax prep help at Phipps' West Farms location, 1071A East Tremont Ave.  Services will be offered Mondays, Wednesdays and Fridays from 9 a.m. to 4 p.m., and until 6 p.m. on Tuesdays and Thursdays. Call 718-620-1900 for more details.

Other events taking place in the Bronx this week are posted below, in our community calendar. 

Editor's note: What did we miss? Send details to bronxnewsnetwork[at]gmail.com.

Usurious Tax-Time Loans Drained $22.5 Million from the Bronx in Just One Year

Tax refund anticipation loans (RALs) siphoned $54.7 million from the pockets of low income New Yorkers in just one year, according to a report issued last week by the Neighborhood Economic Development Advocacy Project (NEDAP), a New York City-based financial justice group (disclosure: I sit on the organization's board). More than 40% of this amount came from the pockets of Bronx residents, at an estimated cost of nearly $22.5 million.

Based on its analysis of recently-released IRS data for tax filing year 2007, NEDAP found that RALs were overwhelmingly concentrated in New York City's low- and moderate-income neighborhoods of color, especially in the West Bronx. RALs drained millions of dollars from neighborhoods throughout the Bronx, Upper Manhattan, and Central and Northeast Brooklyn.

While the number of RALs made citywide dropped between 2006 and 2007, both the number of RALs and money spent on RALs went up in the Bronx; our borough’s share of NYC dollars spent on RALs jumped from 33% to 41%.

The four top zip codes for money lost to RALs were all in the Bronx, including 10453 which was first in the City at $1.74 million. 10456, 10452 and 10457 rounded out spots two through four.  Also in the top ten citywide were zip codes 10458, 10468 and 10467, each of which saw more than $1 million going towards RALs in 2007.

RALs are high-cost loans, secured by taxpayers’ projected tax refunds and Earned Income Tax Credits (EITC). Aggressively marketed to lower income taxpayers as a way to obtain fast cash, RALs carry interest rates from 50% to 500%, according to the National Consumer Law Center and Consumer Federation of America.

Free Tax Preparation Services Offered for Bronx Residents

Neighborhood and citywide nonprofits and financial institutions are joining forces to provide free tax preparation services to Bronx residents, hoping to keep more money in our neighborhoods. Every year, Bronx neighborhoods lose millions of dollars in tax preparation fees and refund anticipation loan interest – much of this coming out of the federal Earned Income Tax Credit. Through this initiative, Bronxites making less than $72,000 will be able to file their federal and state returns without any fees.

In 2006, about one-third of all applications for Refund Anticipation Loans in New York City (more than 71,000 filers) were made by Bronx residents. The total fees paid by these filers for tax preparation, the loans themselves and any other miscellaneous fees totaled approximately $19.5 million dollars, based on calculations made by the Neighborhood Economic Development Advocacy Project using the Consumer Federation of America’s estimate of $273 for an average filer. More than 80% of these Refund Anticipation Loan applications were made by low income Bronxites, who paid more than $16 million for these services. Two-thirds of applications came from households who received the Earned Income Tax Credit, one of the largest federal anti-poverty programs.

Even at the neighborhood level, the amount of money paid for tax preparation and Refund Anticipation Loans exceeds $1 million in many northwest Bronx zip codes. For instance, more than 5,600 filers in 10453 spent more than $1.5 million on tax preparation and Refund Anticipation Loans.

By providing free tax preparation services in these same neighborhoods, much needed money will stay in the pockets of Bronxites. Services began this Saturday, January 24th at the Heiskell Enterprise Technology Center in Refuge House, 2715 Bainbridge Avenue, and run through March 28th. Services will also be offered at Mosholu Preservation Corporation, 3400 Reservoir Oval East, and Ridgewood Savings Bank, 3445 Jerome Avenue, and are by appointment only. Contact University Neighborhood Housing Program at 718-933-2539 for more information or to schedule an appointment.

Sponsored by:
• University Neighborhood Housing Program
• Fordham Bedford Children’s Services
• Fordham Bedford Housing Corporation
• Mosholu Preservation Corporation
• West Bronx Housing & Neighborhood Resource Center
• Food Bank for New York City
• ARIVA
• Ridgewood Savings Bank
• JPMorgan Chase Bank
• Signature Bank
• TD Bank