Tax program gave residents $1.6 million

McALLEN — Low-income residents received $1.6 million in tax credits from the federal government through the help of local volunteers, but they’re still owed nearly $9 million more.

The workers received the help from the Earned Income Tax Credit Program, a local effort to assist the working poor with their tax returns.

“This program is designed to enable the working poor to get that money back,” said Steve Ahlenius, who heads the McAllen Chamber of Commerce. “Obviously, tax returns are a complicated process and sometimes we're a little bit intimated by what’s involved with it.”

This week, the McAllen City Commission allocated $30,000 to the program so it can continue next year.

Ahlenius said he views the program as a way to help the local economy, since it puts more money in the pockets of residents to spend here in McAllen.

Some low-income workers aren’t required to file tax returns — but if they do, they become eligible to receive some of their money back.

The program is a partnership among the chamber, the United Way of South Texas and the Children’s Defense Fund.

From January to April this year, the program operated three centers in McAllen staffed by more than 100 volunteers who helped workers complete their tax forms online.

Families who fill out the returns can receive as much as $5,000 back from the U.S. Internal Revenue Service, Ahlenius said.

Despite the program’s success this year, $9 million remains owed to members of the working poor who simply didn’t file tax returns this year.

The group received $56,000 from local banks this year to run the program and hopes to receive at least that much next year. It’s also hoping to receive a $30,000 grant from the IRS, Ahlenius said.

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Ryan Holeywell covers McAllen, PSJA, the Mid-Valley and general assignments for The Monitor. He can be reached at (956) 683-4446.