With expanded child tax credits providing additional dollars for qualifying families, NeighborWorks network organizations doing tax preparation are working to get the word to as many families as they can. Staff and volunteers want to ensure eligible clients receive that money, along with the earned income tax credit, a tax break for low- to moderate-income earners, says Kori Hattemer, director of Prosper Programs for Foundation Communities.
"Helping people file is a really powerful antipoverty tool right now,” Hattemer says, and Volunteer Income Tax Assistance (VITA) organizations "have a really important role to play in helping people access financial resources.” The tax credit normally provides up to $2,000 to those who fall within the income guidelines. For the 2021 tax year, via the American Rescue Plan, it's $3,600. Many families received part of that credit in advance to help offset pandemic-related job losses or lower wages.
"Our big focus this season is making sure anyone eligible can get it,” Hattemer says. She adds that as more organizations relax precautions – churches, for instance – it's easier to reach out to clients. For the past two years, they've relied largely on virtual connections.
Pre-pandemic, Foundation Communities assisted 20,000 people a year with tax preparation. Last year, it was 7,000. Hattemer's organization now processes 1,000 forms a week, and should be on target to assist 10,000 people during the tax season. She still hopes for more. "It takes a while to rebuild and get the word out.”
Thirty-five NeighborWorks network organizations reported helping with tax preparation in 2021. Those who do often are able to use that moment to connect clients with other services, like financial coaching, counseling education or savings programs, says Laura Ospina Jaramillo, financial capability manager at NeighborWorks. And taxes play a central role for those looking toward homeownership, when they're getting preapproved for loans for the first time.
According to the IRS, the VITA program has operated for more than 50 years, offering free help to those who need assistance including people who make $58,000 a year or less, people with disabilities, and tax payers with limited English. The sites "are operated by IRS partners and staffed by volunteers who want to make a difference in their communities.”
Claudia Soto, senior financial asset coach and tax preparer at Mission Economic Development Agency (MEDA), says her organization filed 7,000 tax returns in 2017, with dozens of volunteers supporting them. During the pandemic, the organization switched to offering services remotely and at the Latino Task force's Mission HUB Building. This year's goal is to file 5,000 tax forms and 600 applications for new tax identification numbers – or renewals – led by four staff members, four temporary employees and three part-time employees.
"The important thing is that we continue to do taxes throughout the year and thus, we have the opportunity to serve more taxpayers in the community,” she says. "As a Latina, I identify with the community; I know their needs and I know the values they fight for. I love to support them in different ways in order to help them to achieve their financial goals.”
The VITA program is more important than ever, she says, adding that refunds – and stimulus checks – are vital to families and individuals to pay bills, save for rainy days, and more. When one of her clients, a woman from El Salvador with three children, qualified for a large refund this season, "I felt happy when I saw her happy face and watery eyes. … It improves economic security and family well-being.”
04/15/2022
