# Presentation: 369687

## CES Multi-State Initiative

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

## CES Multi-State Initiative

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

## 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**

## 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**

## CES Multi-State Initiative

**Key Partners:**
**CSREES-USDA**
**Cooperative Extension Service**
**Center on Budget & Policy Priorities**
**IRS:SPEC ****(Stakeholder Partnerships, Education & Communication)**
**Community Based organizations**

## Community Based Partnerships

**Awareness ****and Education**

**Awareness ****and Education**

**Tax Preparation**

**Asset****Building**

**Community- Based Organizations**

**Notes:**
Background:
Thousands of organizations, employers, and individuals across the United States sharing the same mutual goals and customer base have joined to combine resources and form community based coalitions.

Currently, there are approximately 300 coalitions nationwide.  These coalitions focus on 3 key components in the CBP Model that support family success.

Awareness & Education – Promoting tax understanding and awareness (EITC, CTC, other current issues – Split Refund, TETR, etc.)
Tax Preparation – Preparing tax returns free of charge for low to moderate income people

Asset Building – Encouraging personal asset building and self-sufficiency through tax incentives and partner resources
                        Financial literacy classes, IDAs, accounts for the un-banked

## 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**

## EITC Income LimitsTax 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**

## EITC Maximum CreditTax Year 2006

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

## EITC Impact – TY2005

**Nationally**
**22 million EITC returns**
**$41.4 billion in EITC**

## Definition of Terms

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

## 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**
**	**

## 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**

## Benefits

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

## What can CES Contribute?

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

## What can CES Contribute?

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

## 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**

## 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”**

## 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@irs.gov](mailto:robin.taylor@irs.gov)**_