# Presentation: 236774

## EITC and IDA

- Putting It All Together:
- An Asset-Building Model

## “Building my Future” Campaign

- The “Building my Future” campaign was launched in 2003 by a group of agencies who formed a coalition called the Forsyth Working Families Partnership.
- Their initial mission was to increase the awareness of and encourage the use of the Earned Income Tax Credit (EITC) and the Advance Earned Income Tax Credit (AEITC).
- The FWFP is now focusing its efforts on financial literacy and wealth accumulation.

## “Building my Future”Campaign

- 	When families are working, are successfully managing their budget, and have achieved a measure of financial stability, they have attained economic self-sufficiency.
- 	The next stage for families is asset-building and wealth accumulation.  This means making and claiming in taxes as much income as possible, saving money regularly, and acquiring an asset—the most obvious of which is home ownership.

## “Building my Future”Campaign

- United Way
- Wake Forest University
- Winston-Salem State University
- Department of Social Services
- Family Services
- Chamber of Commerce
- Urban League
- Advocacy for the Poor
- Internal Revenue Service

## One-Stop Shop Methodology

- Where information and tools are available to get the taxpayer started on the road to successfully reducing debt and building assets.
- Income Tax Return Preparation
- Electronic Filing of Tax Return
- Information about programs and agencies
- Open Bank Account
- Financial Counseling

## Asset-Building Counselors

- Experienced Social Workers/Case Managers
- One-on-one experience with clients, teaching financial literacy
- Outgoing personality traits
- Knowledge of community referral processes and program operation specifics
- Available to work nights and week-ends

## Asset-Building Tool Box

- Earned Income Tax Credit (EITC)
- Volunteer Income Tax Assistance (VITA)
- Advance Earned Income Tax Credit (AEITC)
- North Carolina Saves (NC Saves)
- Individual Development Account (IDA)
- Consumer Credit Counseling Service (CCCS)
- Center for Homeownership
- Forsyth County Housing Department (FCHD)
- Forsyth County Department of Social Services (DSS)
- Goodwill Industries

## Points of Contact

- Point of Contact 1 – As the taxpayer is greeted and signed in, he/she is given information from the toolbox.
- Point of Contact 2 – The waiting area is an excellent opportunity for the Asset-Building Counselor to engage the taxpayer in conversation.
- Point of Contact 3 – There is usually some downtime when the tax preparer is filling in information on the Main Information Sheet in TaxWise.

## Points of Contact – cont’d.

- Point of Contact 4 – This is where the Asset Building Counselor can talk without interruption to the taxpayer regarding IDA and other programs that will be of benefit.
- Point of Contact 5 – The taxpayer has the opportunity to discuss NC Saves as well as the advantages of other types of savings accounts.

## Asset-Building Counselor Points of Contact

## VITA/EITC Season-EndResults

|  | Tax Year 2004 | Tax Year 2005 | Pct Inc/Dcr |
| --- | --- | --- | --- |
| TPs Served | 3023 | 3228 | 7% |
| TPs Claiming EIC | 748 | 961 | 28% |
| Total EIC | $863,397 | $1,311,403 | 52% |
| Total Refund | $2,998,134 | $2,943,423 | -2% |

## VITA/EITC Season-EndResults

| Tax Preparation Fee
(estimated at $200 per return) | $656,600 |
| --- | --- |
| Total Tax Clinic Value to Low Wage Earners (refund + tax fees) | $3,589,023 |

## Asset-Building Counselors Data Collection Results

## Asset-Building Counselors Data Collection Results

## Asset-Building CounselorsFindings

- Most taxpayers already had structured plans for using their tax refunds.
- Many taxpayers still did not know what EITC was when they came in.
- Most taxpayers who owed taxes did not realize they had any control over how much was withheld or that they could adjust the withholding to lower their tax liability.

## Thank You.