# Presentation: 660411

- Tax Benefits for Veterans
- with a Disability

## IRS SPEC Mission

***	***
***   ******To assist taxpayers in satisfying their tax responsibilities by building and maintaining partnerships with key stakeholders, seeking to create and share value by informing, educating, and communicating with our shared customers.***

**Stakeholder Partnerships Education & Communication**

## Economic Stimulus 

- Economic Stimulus

- A one-time payment authorized by Congress to give the 2008 economy a “shot in the arm.”
- Eligible individuals receive
- up to $600 ($1,200 for married couples filing joint returns) plus $300 for eligible children younger than 17.
- Special stimulus category
- recipients of non taxable benefits from Veterans Affairs
- not normally required to file a tax return.

**Economic Stimulus Payments (ESP)**

## Economic Stimulus cont.

- Economic Stimulus cont.

- Most people only need to file a federal tax return as they normally do. IRS will calculate eligibility and payment amount.
- The stimulus payment has no impact on other federal benefits.
- The stimulus payment is not taxable.
- Absent any other filing requirements, filing a tax return to receive a stimulus payment does not mean that veterans will have to start filing tax returns again.
- Heart Act (Heroes Earnings Assistance and Relief Tax Act) corrected the ESP/ITIN issue

## Economic Stimulus cont.

- Economic Stimulus cont.

- Most people only need to file a federal tax return as they normally do. IRS will calculate eligibility and payment amount.
- The stimulus payment has no impact on other federal benefits.
- The stimulus payment is not taxable.
- Absent any other filing requirements, filing a tax return to receive a stimulus payment does not mean that veterans with no filing requirement will have to start filing tax returns again.

## Economic Stimulus—How can you help us?

**Economic Stimulus—How can you help us****?**

- 250,000 veterans have not claimed their ESP
- Homeless veterans make up a large portion of this population
- Trusted local organizations are needed to reach this population
- Engage our local SPEC offices in your Stand-Downs and other events

## Economic Stimulus— Veteran Metrics

**Economic Stimulus— Veteran Metrics**

- ESP veteran flyer
- Unclaimed veteran ESP population by state

## Community Based Partnerships

**Awareness ****and Education**

**Outreach ****and Education**

**Tax Preparation**

**Asset****Building**

**Client Based Organizations**

## What is the Earned Income    Tax Credit (EITC)?

- Federal Tax Benefit to Help Low and Moderate Income Workers Increase Their Financial Stability.
- Reduces Taxes for Workers
- Supplements Wages
- Fully Refundable Credit

## Need for EITC Education and Outreach

- Need for EITC Education and Outreach

- Limited Education, Language and Financial Abilities
- Concentrated IRS Efforts in the Past Have Failed to Reach All Eligible Families
- Affirmative Action Required to Access EITC and Other Tax Credits

**Notes:**
LET’S TAKE A SURVEY – WHO IS NOT INTIMIDATED BY THE IRS – I AM

PEOPLE WHO NEED TO BE INFORMED – NEW WORKERS COMING FROM WELFARE, PART-TIME EMPLOYEES, EMPLOYEES WHO HAVE LOST THEIR JOBS, GRANDPARENTS WITH CUSTODY

MILLIONS OF DOLLARS OF EITC GO UNCLAIMED EACH YEAR, WITH A DISPROPORTIONATE NUMBER OF NON-CLAIMERS BEING LOCATED IN NEIGHBORHOODS OF CONCENTRATED POVERTY

NEED COMMUNITY ORGANIZATIONS THAT ARE TRUSTED AND THE WORKING POOR INTERACT WITH ON A DAILY BASIS – TRUST, TRUST, TRUST (LOCATION, ETC)

IRS HAS SENT OUT MILLIONS OF LETTERS OVER THE YEARS WITH NO CHANGE IN THE PERCENTAGE WHO FAIL TO CLAIM THE EITC

IRS EXAMPLE – IRS LETTER TO THOSE WHO MAY BE ELIGIBLE FOR THE CREDIT – WILL GIVE  YOU MORE MONEY – LAST STAT SAMPLE ONLY 17% RESPONDED 

## Why Is There a Need For Free Tax Preparation Services?

- Inability of Working Families To Prepare Their Own Return
**71%** of EITC Income Eligible Taxpayers Used a Paid Preparer
- Lack of Existing Free Tax Prep Sites
- 30% of all EITC filers received a refund anticipation loan

**Notes:**
RETURN PREP IS COMPLICATED

62%=39,778/63,744

FREE TAX PREP SITES HISTORICALLY HAVE BEEN LOCATED IN PLACES CONVENIENT TO THE VOLUNTEERS – NEED AT LOCATIONS CONVENIENT TO THE CLIENTS – LOUISVILLE EXAMPLES – HOUSING PROJECT, COMMUNITY CENTER

VOLUNTEERS – COMPUTER LITERATE, YOUNG STUDENTS

## EITC Outreach

- 23.3 Million EITC Returns
- 43 Billion of EITC
- 15% fail to claim

## Veterans Outreach

**Veteran Target Populations for 2009:**
- Homeless
- Returning vets reentering civilian workforce
- Involved in Compensated Work Therapy (CWT) or Incentive Therapy (IT) programs
- VA Disability determinations
-  Resolution of Existing Tax Liabilities
- Local Taxpayer Advocate
- Low Income Tax Clinic

##    The Disability Initiative is co-branded with National Partners as

REI Tour
National Disability Institute – Lead Partner

-    The Disability Initiative is co-branded with National Partners as
- REI Tour
- National Disability Institute – Lead Partner

- Disability InitiativeReal Economic Impact Tour

## What is REI Tour?

- Building a Better Financial Future for Americans with Disabilities

**Purpose:**
- Provide tax and financial service information and other asset building strategies for persons with disabilities, their families and employers.

**Strategy:**
- Join existing free tax coalitions and provide resources, education and technical assistance to expand existing infrastructure to better serve customers with disabilities.

## REI Tour National Outcomes

## Local Partners

## Slide 18

## For More Information.....

**Ron Smith**
**404-338-8512**
- _[Ron.Smith@irs.gov](mailto:Ron.Smith@irs.gov)_