For many working families, tax season can feel overwhelming. Between jobs, childcare, rising costs, and everyday responsibilities, filing taxes often falls to the bottom of the list. This is especially true for families who are working hard but still struggling to stay financially stable, including households in the ALICE population. ALICE stands for Asset Limited, Income Constrained, Employed. These are individuals and families who work, often in essential jobs, but still cannot afford basic needs like housing, food, childcare, transportation, and healthcare.
One of the most powerful tools available to support working families is the Earned Income Tax Credit (EITC). This is a federal tax credit for low to moderate income workers and families. It can reduce the amount of taxes owed or provide a refund, even if no taxes are due. The amount depends on income, family size, and filing status. For many households, this credit can mean the ability to cover rent, utilities, groceries, transportation, or begin saving for the future.
We recently saw the impact of the EITC through our Volunteer Income Tax Assistance (VITA) program.
In June 2025, a client came in feeling overwhelmed by stress related to work, finances, and taxes. She and her husband had been through a difficult year and had not filed their 2023 taxes. Their 2024 taxes were also still unprepared. She only had a short lunch break, so we were able to get started before she had to return to work.
After she left, our team completed both tax returns. When she came back later that day, she shared that she was expecting to owe thousands of dollars because they were late filing for two years.
Instead, she learned they owed nothing and would receive just under $15,000 back from the IRS combined. About 70 percent of that refund came from withholdings, money they had already earned from working. The remaining amount included the Child Tax Credit and $1,800 from the Earned Income Tax Credit, a resource designed to give working families a meaningful financial boost.
This is why VITA is so important. It removes barriers by offering free, high quality tax preparation to individuals and families who qualify. It allows people to file multiple years at no cost while ensuring returns are accurate and complete. Most importantly, it helps families, including ALICE households, access the credits and refunds they have earned.
Through VITA, United Way of Summit & Medina supports financial stability for families in crisis and for those who are working hard but still struggling to get ahead.
If you worked last year, you may qualify for the Earned Income Tax Credit and free tax preparation services.
Visit our website to to schedule your free tax prep appointment today.