CKEEP

The Central Kentucky Economic Empowerment Project. CKEEP is a coalition which partners with the IRS to provide free tax preparation to low-income families, raise awareness about the Earned Income Tax Credit and help families build assets.

Each year, millions of dollars are lost to hard-working families in the Lexington area who do not file their Earned Income Tax Credit.  That money is lost to them and to the local economy.  Additionally, millions of dollars are lost when area households pay high fees to tax preparation firms that charge for Refund Anticipation Loans (RALs) or rapid refunds.  Click here to learn how you can help out.

In the 2008 tax season, ten free tax preparation sites completed over 1,100 returns for low-income families, resulting in over $1.35 million in federal refunds; $586,480 of those refunds were from the refunds were Earned Income Tax Credit.

History
During tax season 2003, LexLinc promoted several of the existing, unconnected free tax preparation sites in Lexington. With this promotion, the idea for a community-based partnership to enhance local use of EITC was conceptualized. The formal partnership of CKEEP, Central Kentucky Economic Empowerment Project, began in April 2003. Together with the IRS, CKEEP’s goals are to increase the number of free tax sites in Lexington, increase the awareness and use of EITC in Lexington and to develop family asset building plans.

The Earned Income Tax Credit
Earned Income Tax Credit (EITC) is a federal tax initiative to assist low-income families in self-sufficiency. The EITC along with child tax credits can be the very tool used to lift families above the poverty line. The IRS awards EITC to families that fall below the income limit of $42,000 (varies with family size). EITC is an additional amount of money families may receive when they file their taxes. However, approximately 20-25% of those eligible for the credit do not claim it. CKEEP’s goal is to make eligible individuals and families aware of the credit and help those eligible claim that credit without having to pay for services.

Nationally, EITC has proved a reliable economic initiative for moving families into self-sufficiency.

• EITC lifted 4.7 million people above the poverty line (2.6 million were children).
• Over 19.4 million working families and individuals received the credit.
• In 2000, over $31 billion in federal EITC funds flowed into the states.