Voluntary Income Tax Assistance Project

Summary

Volunteers in Oakland, California help low- and moderate-income families receive tax benefits with the help of the NCLR AmeriCorps program.

Description

The community of Fruitvale in Oakland, California has high rates of poverty and unemployment, and families who live in Fruitvale are faced with obstacles that impede them from achieving self-sufficiency. The government provides tax benefits for individuals who fall into the low- or moderate-income bracket; however, the community has been unable to take advantage of these benefits for a number of reasons. An NCLR AmeriCorps group working in southern California set out to change that, by helping families fill out applications to receive the tax benefits.

One of these benefits is called the Earned Income Tax Credit (EITC). Its purpose is to help struggling families achieve financial stability and establish independence from the welfare system. Specifically, the EITC aims to reduce taxes for low-income workers, supplement wages, and make work more attractive than welfare. EITC is the largest governmental anti-poverty measure to date, yet up to 25% of those eligible for the credit do not claim it. In 2003 in Alameda, Contra Costa, and San Francisco Counties, an estimated $35 million allocated to EITC went unclaimed. Immigrant families and those in neighborhoods of concentrated poverty are the least likely to apply for the funds, yet they have the greatest potential for significant EITC benefits. One reason for this is that paid preparers fill out most of the applications.

In response to these alarming statistics and calculations, The Unity Council, with help from NCLR AmeriCorps and in partnership with United Way of the Bay Area, implemented the Voluntary Income Tax Assistance (VITA) Project from January to April 2004. They organized the collaboration of 14 free tax assistance sites and filed over 2,250 returns. More than $3 million was returned to the community; almost two-thirds of that money was EITC alone. The Unity Council reports that its project benefited 524 families.

During the project, AmeriCorps members became certified income tax preparers and provided this service free to the community. Members had the opportunity to raise the quality of life of their neighbors, and they provided services in a convenient location and in a language comfortable for the clients. Most importantly, these services brought families closer to achieving self-sufficiency.