Volunteer Income Tax Assistance

VITA (Volunteer Income Tax Assistance) is a national IRS sponsored program that provides free high quality tax preparation for low to moderate income individuals and families. The VITA program was created to promote the awareness of the Earned Income Tax Credit (EITC) - a refundable federal tax credit that helps low to moderate income individuals offset taxes, supplement low wages, and provide a work incentive. The EITC is currently the largest federal poverty assistance program

History

The Central Cedar Rapids Weed and Seed (CCRWS) VITA program began in 2006 and has steadily grown since (see chart below). The 2009 filing season is proving to be the biggest season yet - individuals and families making under $49,000 will qualify for assistance and can schedule an appointment at one of four locations in Cedar Rapids.

2010 Statistics

New for 2010

New additions to the VITA program for 2010 include the creation of Super Tax Saturday – an opportunity for community members to have their taxes filed for free and participate in a financial education fair. Held February 13, 2010 at Coe College, Super Tax Saturday drew in over 100 individuals that received tax help and/or collected information from several of the 15 vendors present at the fair. The CCRWS VITA program has also partnered with the ISU Extension office to provide a “Mobile Tax Site” in Iowa County – a rural location that has not had VITA services available in years past.

The CCRWS VITA program has come a long way since it began in 2006, and the steady growth can be attributed to a number of factors. Community participation – in the form of volunteers and partnerships - is essential for a successful VITA program. Volunteers are the heart of VITA – without them, there would be no program. Recruited from local businesses, colleges, universities, and the AmeriCorps programs, VITA volunteers invest hundreds of hours of their time during tax season because they believe improving the local economic situation can start with a simple tax return. The VITA program began with five volunteers in 2006 and currently has 42 volunteers assisting in 2010. Community partnerships are another critical component for growth and expansion. Planning for the VITA season begins months in advance, and a strong program foundation can be attributed to contributions from key partners.

The Value of VITA

Since the CCRWS VITA program began, over $4.4 million in federal refunds and $1.8 million in EITC refunds have been returned to the Cedar Rapids community. In a Brookings Institution Report, it is estimated that for each dollar of EITC returned to the community, an additional $1.58 is generated in local economic activity (Holt, p.13). VITA also saves clients hundreds of dollars in tax preparation and rapid refund fees. Commercial tax preparers can charge an average of $175 per return plus an additional $125 an hour to prepare returns. Estimated savings for the Cedar Rapids community are over $1 million with an additional $7 million in Federal and EITC refunds generated. This local stimulus could not come at a better time for Cedar Rapids.