Community

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Community Based Coalitions
A Gateway to Self-Sufficiency
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Awareness and Education
AssetBuilding
Community- Based Coalitions
Tax Preparation
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What is the Earned Income Tax Credit (EITC)?

• a federal tax benefit to help low and moderate
  income workers increase their financial
  stability.
• Reduces taxes for workers
• Supplements wages
• Makes work more attractive than welfare
• Fully refundable credit

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Why call for EITC outreach?

• Limited education, language, and financial
  abilities
• Many taxpayers who qualify for EITC do not claim
  it
• Partners are uniquely qualified to reach their
  customers

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What does EITC do for working families?

• Provides a maximum credit of up to 4,536 for
  working families
• Provides more than 20 million working families
  and individuals with average EITC refund of
  1,800

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Why think about EITC?

• EITC remains the single largest federal aid
  program for working families.
• EITC provides more to working families than
  other federal programs

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EITC Savings Assets
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What is the Child Tax Credit?

• 1,000 for each qualifying child
• Working families can receive BOTH the Child Tax
  Credit and the Earned Income Tax Credit in the
  same year.

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Volunteer Income Tax Sites
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Other Credits and deductions

• Split Refunds
• Savers Credit
• Telephone Excise tax refund
• Education credits
• Child and dependent care credit

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Wide range of opportunities

• Recruit volunteers to serve at assistance sites
• Train  volunteers to prepare simple tax returns
• Manage return preparation site in your
  neighborhood

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Community-based coalitions

• Community organizations with common interests or
  a shared commitment of helping working families
• Coordinate existing activities of multiple
  organizations

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Assets

• Provide greater household stability
• Increase community/civic involvement
• Increase the wealth of neighboring communities
• Enhance well-being of next generation

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EITC can be a gateway to self-sufficiency

• Coalitions
• Use EITC as gateway to affordable, accessible
  financial services
• Help to obtain bank accounts
• Provide financial literacy training
• Provide tools and opportunities to assist
  families in buying a home

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Linking the pieces
Awareness reach eligible families that
currently dont claim the Credit Free Tax Prep
preserve the value of the Credit Asset building
introduce financial literacy into the picture
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Why is IRS interested in community-based
coalitions?

• Ensure taxpayers have the correct tax
  liabilityincluding credits
• Generate a stronger outreach in communities
• Shared mission with many local and national
  organizations

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Partners and Programs

• Assets for Independence (AFI)
• FDIC Money Smart
• The Assets Alliance
• Corporation for Enterprise Development
• Credit Builders Alliance 
• New America Foundation
• National Federation of Community Development
  Credit Unions
• National Credit Union Administration (NCUA)

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Resources
www.irs-eitc.info/SPEC (IRS EITC
Toolkit) www.irs.gov/eitc (IRS.gov site for
EITC) www.cbpp.org/eic2006 (Center on Budget and
Policy Priorities) www.brookings.edu/urban/eitc
(Brookings Institution - EITC) www.acf.hhs.gov/ass
etbuilding/ (Administration for Children and
Families (ACF) www.assetsalliance.org (The
Assets Alliance) www.creditbuildersalliance.org
(Credit Builders Alliance) www.assetbuilding.org
(New America Foundation) www.fdic.gov/consumers/co
nsumer/moneysmart (Money Smart)
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Contact Information
Richard Keeling Senior Tax Analyst IRS/SPEC 401
West Peachtree St. NW STOP WI-53 Atlanta, GA
30308 404-338-8814 Richard.Keeling_at_irs.gov