For most of us, tax season can be daunting. But for those struggling to make ends meet, a full tax refund is a vital budget boost that keeps the lights on, puts food on the table, and pays for a place to call home.
At United Way of Broome County, we know that helping our neighbors make the most of tax season and maximize their refunds is an important step in helping families break the cycle of poverty and be on the road to financial stability.
That’s why each year, United Way of Broome County and the 211 Susquehanna River Region Contact Center team up Broome County Department of Social Services (DSS) to bring the Volunteer Income Tax Assistance (VITA) Program to our community. VITA utilizes IRS-trained volunteers to provide free tax preparation to individuals and families earning $60,000 or less each year. Last year, over 600 households turned to the 211 Susquehanna River Region Contact Center to schedule tax assistance appointments with United Way of Broome County and DSS; in total, $1,087,781 in tax refunds were processed, with an additional estimated savings of over $182,700 in tax prep costs to participants, based on IRS estimates. The total value provided to the community was $1,327,692.80 when combining savings in tax prep fees, refunds, and in-kind value and time.
But VITA is more than a tax return or one-time cash infusion. It empowers community members to take control of their money and put it to work strategically and effectively to build a solid financial foundation to build a future.
- VITA gives taxpayers back a significant portion of their annual income.
According to the IRS, last year’s average tax return was approximately $2,000. What does that mean? For clients struggling to make ends meet,  this money can instead buy groceries or help with the rent.
- It saves community members real money.
Not only does VITA help individuals and families maximize their tax returns so they keep more of their hard-earned money, but it also saves them real cash in the process. In 2020, the average cost to have taxes prepared by a paid service was $300 – and that was for a simple return. Add in any situation to make it more complex or toss in a tax credit or two, and the cost goes up. For those living in poverty, that $300+ savings is significant and can keep them from having to make tough choices, like not paying rent to put food on the table for their family.
- It provides access to our nation’s greatest anti-poverty tool.
Many times paid tax services charge clients to access credits that they automatically qualify for, like the Earned Income Tax Credit (EITC), which can return nearly $7,000 to eligible taxpayers. But VITA provides access to the EITC and other common credits at no cost, helping to remove barriers so more people can access credits they’re eligible to receive AND that can boost a return – and a budget.
- It connects people to additional services to build financial health and stability.
VITA tax sites connect community members with an array of services to maximize their refunds and make smart decisions on how to use the money they get back. From information on building assets, credit counseling, and saving and spending plans, VITA empowers clients by equipping them with the resources and tools they need to become financially aware and build a solid financial foundation.
