Tax Refunds: A Vital Chunk of Working Poor's Annual Budget

For Ola Jones, 53, her federal income tax refund typically amounts to more than an extra paycheck each year.
It's a vital part of her annual budget and a way to cover extra bills and necessities.
"Right now, I need a washing machine and tires for my car," said Jones, who stood in line one snowy Saturday morning in late January to obtain free tax-preparation help at Focus: HOPE in Detroit.


Her daughter, Tujuana Jones, 19, also received free tax-preparation help, offered that day by volunteers from the Michigan Association of Certified Public Accountants. The student, who attends Wayne County Community College District and works at Rainbow Clothing in Detroit, planned to go shopping with her $500 tax refund.

For lower-income families, the tax season kickoff is a time to catch up with bills and rebuild some savings. The federal earned income tax credit and other Michigan-related tax credits offer a powerful punch for limited budgets.

www.freep.com/article/20120209/COL07/202090429/Susan-Tompor-Tax-refund-is-vital-chunk-of-annual-budget-for-many-people