CES MultiState Initiative

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CES Multi-State Initiative

• Introduction
• Collaborative effort to increase benefits
  obtained by low-to-moderate income families

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CES Multi-State Initiative

• Methods for increasing benefits
• Free income tax preparation assistance
• Outreach
• Financial literacy programs
• Location of programs
• Rural America
• Urban America

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Objectives of Initiative

• Increase the number of low-income working
  families who use free tax prep
• Increase the number of EITC (Earned Income Tax
  Credit) eligible claimants

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Objectives of Initiative

• Maximize the value of tax refunds for EITC
  eligible families
• Link EITC recipients to Cooperative Extension
  financial education and asset building programs

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CES Multi-State Initiative

• Key Partners
• CSREES-USDA
• Cooperative Extension Service
• Center on Budget Policy Priorities
• IRSSPEC (Stakeholder Partnerships, Education
  Communication)
• Community Based organizations

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Community Based Partnerships
AssetBuilding
Awareness and Education
Awareness and Education
Community- Based Organizations
Tax Preparation
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Definition of Terms

• Earned Income Tax Credit (EITC)
• Federal Tax Benefit to help low to moderate
  income workers and families increase their
  financial stability
• Reduces Taxes for workers
• Supplements wages
• Makes work more attractive than welfare
• Fully refundable credit

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EITC Income LimitsTax Year 2006

• 36,348 (38,348 MFJ) with two or more qualifying
  children
• 32,001 (34,001 MFJ) with one qualifying child
• 12,120 (14,120 MFJ) with no qualifying children

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EITC Maximum CreditTax Year 2006

• 4,536 with two or more qualifying children
• 2,747 with one qualifying child
• 412 with no qualifying children

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EITC Impact TY2005

• Nationally
• 22 million EITC returns
• 41.4 billion in EITC

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Definition of Terms

• Child Tax Credit
• Federal Tax Credit worth up to 1,000 for each
  qualifying child under age 17

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Definition of Terms

• Split Refund
• Taxpayers can now split their refunds among up
  to three checking or savings accounts, with up to
  three different financial institutions
• Telephone Excise Tax Refund (TETR)
• A one-time payment available on your 2006
  federal income tax return, designed to refund
  previously collected long-distance federal excise
  taxes

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Benefits

• Helps move families toward self-sufficiency
• Linking free tax prep EITC refunds to financial
  education other asset building opportunities
• Natural Link to America Saves campaigns
• Link to Split Refunds

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Benefits

• Potential to help bring millions of dollars in
  EITC refunds into your community
• Help stimulate the local economy

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What can CES Contribute?

• Join existing community based coalitions
• Key leadership in developing new coalitions in
  underserved areas of Rural America

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What can CES Contribute?

• Market VITA sites of existing coalitions 2007
  Filing Season
• Provide financial education to refund recipients

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IRS-SPEC Contributions

• Tax law expertise
• Access to local coalitions
• Free software for tax preparation
• Training materials
• Data on EITC statistics
• Marketing products and materials
• Technical assistance

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Accountability issues

• Measuring Impact
• Reporting on activities timely
• Establish National Leadership Team
• Develop Marketing Plan increase participation
• Develop Evaluation Plan measure impact
• Establish Best Practices

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Contact Info

• Robin Taylor
• Senior Tax Analyst
• Education Government Partnerships
• 401 W. Peachtree Street NW
• Stop 52-WI
• Atlanta, GA 30308
• Office 404-338-7174
• E-Mail robin.taylor_at_irs.gov