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Free Tax Prep Sites Generated Increase in Federal Refunds for Nashville Families
May 18, 2009NASHVILLE, Tenn., Thanks to free tax preparation provided by 170 volunteers and the Earned Income Tax Credit, more than 7,000 low- and moderate-income families throughout Nashville received a total of more than $11.4 million in refunds this past tax season.
Sixteen free tax preparation sites (including a mobile site that served the homeless, those living in transitional facilities and other hard-to-reach populations) were made available to households earning $42,000 or less.
The Nashville Alliance for Financial Independence (NAFI) coordinates the network of sites, which are called Volunteer Income Tax Assistance or VITA sites. Day-to-day management of the sites is provided by several different organizations, including churches, businesses, schools, nonprofits, and government. NAFI is a broad-based coalition of government, nonprofits, churches and businesses working together to help low- and moderate-income individuals and families throughout Nashville/Davidson County build and maintain financial stability for the future. United Way of Metropolitan Nashville is a leading partner of NAFI.
2009 tax season results
➢ Total number of Returns filed through all 16 VITA sites: 7,008 (a 3% decrease over 7,248 in 2008, when VITA sites also served clients filing for economic stimulus checks)
➢ Total EITC Refunds: $3,813,082 (an 18% increase over $3,231,299 in 2008)
➢ Total Federal Refunds due to VITA site clients: $11,409,298 (a 27% increase over $8,997,069 in 2008)
➢ # of Calls to 2-1-1 to find VITA locations and times: 8,002 (a 13% increase over 7,064 in 2008)
Volunteer stats
• 170 volunteers provided free tax preparation services at 16 VITA (Volunteer Income Tax Assistance) this year, and served more EITC-eligible workers than ever before, bringing more refunds back into Davidson County than ever before.
• Volunteers received 16 to 20 hours of training from the IRS prior to the tax season
• Working an average of 30 hours each throughout the tax season, it is estimated that the 170 volunteers gave over 5,000 hours of service to the community.
How Nashville’s working families might spend $11.4 million in refunds
Research from the Center on Budget and Policy Priorities shows that many families receiving the EITC use it to pay for basic necessities like housing, utilities, food, and basic household appliances. Some families use their EITC to make purchases or investments that can help them maintain their jobs and their homes or to improve their employability so they have a better chance of moving into the middle class. The research indicates, for example, that a significant share of families use part of their EITC to repair or replace a car needed to get to work, to make essential but costly repairs to a home such as repairing a leaking roof, or to pay for more education or job training.
Davidson County VITA clients who answered a survey gave these answers:
➢ 2,856 will use to pay bills
➢ 1,161 will purchase food or clothing
➢ 810 will spend on rent, home repair, or mortgage
➢ 797 will put into savings
➢ 471 will use to buy or repair a car
➢ 442 will use for doctor or other medical bills
➢ 354 will put toward school tuition
➢ 186 will spend on child care
