Volunteer Income Tax Assistance (VITA) Program Helps Citizens Save Money and Learn New Budgeting Skills

Summary

Roxie Price, UGA Extension Family and Consumer Sciences Agent, implemented a virtual Volunteer Income Tax Assistance (VITA) program in Tift County to help rural consumers in poverty by saving them hundreds of dollars in tax preparation fees. Using technology to reach IRS-certified VITA volunteers, the program provided free tax preparation and budgeting information to limited income consumers and the elderly.

Situation

Rural and under-served communities have difficulty filing their taxes, receiving financial education, budgeting for emergency funds, and improving their financial situations. Without proper education, these community members lose money when filing taxes, make uneducated financial decisions, and are not prepared for emergency spending situations. Residents living in poverty often depend on title pawn businesses, tax refund anticipation loans, and tax companies who charge high preparation fees. These actions can contribute to individuals remaining in a cycle of poverty. Volunteer Income Tax Assistance (VITA) programs were easy to locate, in the past, for free tax assistance. In recent years, many VITA sites have struggled to find volunteers to manage the sites. Therefore, many consumers are paying for tax preparation and unnecessary added fees.

Response

In 2016 Roxie Price participated in a multi-state collaboration with the University of Florida / Institute of Food and Agricultural Sciences (UF/IFAS) Family and Consumer Sciences Agent, in Leon County, and Florida IRS Senior Tax Consultants, to pilot a virtual VITA program for Tift County Extension. Price was the site coordinator and successfully completed the IRS Basic exam, the IRS Intake/Interview and Quality Review exams, and the IRS Volunteers Standards of Conduct exams. Since 2016, Price's tax clients have tripled, as she now collaborates with Dr. Palmer and Dr. Koonce of the College of Family and Consumer Sciences, Department of Financial Planning, Housing and Consumer Economics at UGA to expand the virtual VITA program. This program utilized a student service-learning model with UGA accounting students through video technology. Tift County VITA was implemented to help rural consumers in poverty by saving them hundreds of dollars in tax preparation fees. The program provides free tax preparation to limited income consumers and the elderly. Price created a client evaluation to gather information and improve the program in the coming years.

Impact

In 2020,140 clients, from Tift and surrounding counties, were assisted by Price, with 127 returns filed and 355 people counseled on good financial management practices to improve their future financial situation. The Federal tax dollar amount returned to Tift and surrounding counties was $100,815 and the amount of State tax dollars returned was $23,116. In addition to these dollars, the clients’ combined tax preparation fee savings was approximately $32,000.

State Issue

Community, Home, & Life Skills

Details

• Year: 2020
• Geographic Scope: Multi-County
• County: Tift
• Location: College Station, Athens
• Program Areas:
  • Family and Consumer Sciences