The City of Phoenix

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The City of Phoenix
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Earned Income Tax Credit
The City of Phoenix 2006-2007 EITC Campaign

• Largest Federal Tax Benefit Program

• Work Incentive vs. Public Assistance

• 36 Billion Dollars in Tax Refunds

Lifted millions out of poverty!
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The City of Phoenix 2006-2007 EITC Campaign
How People Use Their EITC

• Pay Bills
• Make Significant Purchases

• Homes
• Auto

• Education Training

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The City of Phoenix 2006-2007 EITC Campaign
EITC CHALLENGES

• Lack of awareness of the program

• Transaction costs

• Predatory Practices.

• High Commercial Fees

• Rapid-Refund Loans

• Check-Cashing Operations

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The City of Phoenix 2006-2007 EITC Campaign
Impact on Phoenix

• 35,000 Workers NOT Receiving the Financial
  Boost
• 25 to 64 Million Dollars of Unclaimed EITC
  Last Year

PHOENIX MISSING THIS ECONOMIC BOOST!!
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Maryvale
Targeting Communities
South Phoenix
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85031
85037
85033
85035
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The City of Phoenix 2006-2007 EITC Campaign
The EITC Campaign

• Public Awareness
• Free Tax Filing
• Financial Education

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Outcomes-2006 Public Awareness Education
The City of Phoenix 2006-2007 EITC Campaign

• Over 2 million Phoenix residents learned about
  the EITC Campaign through the media or through
  their February utility bills.
• Calls to the EITC Hotline increased by more than
  600 since 2003.

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The City of Phoenix 2006-2007 EITC Campaign
Outcomes-Tax Preparation Services

• At 25 core tax sites
• Over 100 volunteers provided 6,400 hours of free
  tax prep.
• 7,000 low-income families filed returns
  resulting in nearly 7.0 million in tax refunds
• Low-income families saved approximately 2.2
  million in transaction costs

Phoenix residents received 60 million more than
2003!
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Outcomes - 2006Tax Preparation Services

• Five new sites brought nearly 500,000 in tax
  refunds
• Returning sites made substantial gains over
  previous efforts
• FIBCO
• Inter-Tribal Council of AZ
• John F. Long Family Service Center

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The City of Phoenix 2006-2007 EITC Campaign
Keys to Success

• The messenger is key!
• Community ownership!
• Target populations!
• Integration of other benefits!
• Financial Education!
• Year-round tax filing!
• ROI Keep your eye on the prize!

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2006-07 Campaign Plans

• Seven new tax preparation sites
• Outreach to people with disabilities
• Community ownership of tax sites and Financial
  Education Program.

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Why Focus on People with Disabilities?

• One in five Americans have a disability.
• One in three families have a member with a
  disability.
• 26 of people with disabilities live in poverty
  (3 times the national average)!
• Nationwide, over 50 of working-age people with
  disabilities do not have banking relationships.
• While there are dozens of assets-building
  programs across the nation, NONE of them focus on
  people with disabilities!

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How does EITC interact with Public Benefits?

• Neither EITC or CTC (Child Tax Credits) are
  counted as income in most benefit programs
  (SSI,SSDI, food stamps, Medicaid,
  federally-assisted housing, etc.).
• With some programs, EITC and CTC are excluded as
  a resource for a designated time period after the
  month of receipt, as follows
• benefit EITC CTC
• SSI 9 mos. 9 mos.
• SSDI no limits on either
• food stamps 12 mos. 1 mo.
• Medicaid 1 mo. 1 mo.
• Fed. Housing 1 mo. 1 mo.

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Program Goals

• Establish an EITC-Disability Work Group that
  seeks to
• Increase awareness of the EITC Program and free
  tax-filing sites for people with disabilities.
• Recruit people with disabilities to become
  volunteer tax preparers and greeters at free
  tax-filing sites.
• Invite disability organizations to promote the
  EITC Program and become free tax-filing sites.
• Establish a comprehensive network that creates
  real economic change for people with disabilities
  through tax refunds, financial education, and
  asset-building programs that build and preserve
  financial health.

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WORKING POOR
Who Benefits?
Businesses
Employers
EITC
Local State Govt.
Banks
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The City of Phoenix 2006-2007 EITC Campaign
EITCEverybody Wins!
For more information, contact Wayne Tormala
602-495-7044 wayne.tormala_at_phoenix.gov Jackie
Ciccolo 602-262-6658 jacqueline.ciccolo_at_phoenix.
gov