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C.A.S.H. Update - Week 8 of Tax Season

March 22, 2011

Author: Rita M. Eygabroad Garretson

Dear C.A.S.H. Supporters and Friends,

We are 75% of the way through tax season, and just about every site has completed more returns than last year at this time. Our partner sites at Genesee Co-of Federal Credit Union and Rochester Rehabilitation have each completed more returns than they did throughout last year’s entire season! At this point, we are about 4% ahead of last year. If we keep this pace, we’ll meet our goals.

Year to date, we have provided services to 8,784 working families, claiming $22 million in federal and NY State tax refunds and credits, of which $9.4 million were EITC. A total of 157 prepaid card accounts have been opened, as well as 88 savings accounts and 85 checking accounts; and 168 people took advantage of splitting their refund – most likely to buy U.S. Savings Bonds. (Details by site are attached.)

Preliminary Survey Results

Attached are summaries of data from two survey instruments that we use.

1. The Intake Sheet is completed by clients before they meet with the volunteers. It provides information about clients’ interests and expectations. The sample includes about 6,000 clients, primarily those who went to super sites. A significant number of clients expressed an interest in financial literacy education, with 36% requesting information about credit and getting out of debt. Nearly 30% struggle to buy groceries, and about 25% lack health insurance for all members of their household. The majority of our clients, more than 70%, have not reviewed their credit report within the last year – highlighting the importance of providing access to free credit reports at C.A.S.H. sites. Word of mouth appears to be the most common way that first time C.A.S.H. clients become aware of us. When asked about plans to use their tax refund, 60% plan to pay bills, 30% plan to save some, 25% will buy food and clothing, 22% will use for housing expenses, and 19% will use it for car repair or purchases. As a testimony to their appreciation for services, close to 30% of our clients are interested in volunteering next year.

2. The Exit Survey provides feedback regarding client satisfaction and the services that they used at the site. Virtually 100% were satisfied with the service they received. The fewer than 1% who expressed dissatisfaction most typically cited the long wait or a refund that was less than they expected. About 10% of the clients applied for either a savings account, checking account or prepaid card, and 3% purchased savings bonds. Hundreds of clients reviewed their credit report while at a site.

Special Help for Persons with Disabilities

During the last two weeks, we made special arrangements to serve clients with developmental disabilities. We opened the Irondequoit site early for a couple of days, and three of our volunteers donated additional time to prepare tax returns. If you know of an organization providing services to persons who could use C.A.S.H. help, and may need special arrangements, please contact me ASAP (295-5732 or rgarretson@empirejustice.org)

Save the Date: Tuesday, May 3, 5:30 pm to 7:30 pm

Please plan to join us for our annual event to thank volunteers and celebrate our successes. More details will be coming in an invitation, soon.

C.A.S.H. in the News:

We are working to increase awareness of C.A.S.H. during the next few weeks. We issued a press release yesterday (see attached); I was interviewed by Virginia Butler of YNN News on Friday morning; and I will be on WDKX with Cheryl McKeiver during the “Water Cooler” next Thursday. We are reaching out to people who may not realize that although they aren’t required to file a return, there may be a benefit to doing so. Basically, anyone who works should file a tax return.

C.A.S.H. Client Stories Shared by Volunteers:

C.A.S.H. Client Story of the Week (C.A.S.H. Advisor): As a CASH Advisor, I was working with a young man whose English was very limited. He came in to file his own taxes as a single person. As we were talking, it came out that he lived with his parents, neither of whom worked, and one of them was disabled. His income was supporting all of them. I wrote a note to the tax preparer, and as a result, he was able to claim one of his parents as a dependent, and he received a much-needed$4,000 refund. Quite a boost to his struggling household, which had less income than the CASH $16,000 average. I was thinking that this shows how it can pay off to take a little extra time as a CASH Advisor to learn a bit about each person's circumstances.
C.A.S.H. Client Story of the Week (C.A.S.H. Tax Preparer): I was working with a young woman who learned that she was going to receive a refund of more than $4,000. The C.A.S.H. Advisor had spoken to her about using direct deposit, but she wasn’t comfortable with banks, and she hadn’t immediately opted for a prepaid card. I asked her what she was going to do with all that money after she cashed her check – “Are you going to stuff it in your mattress? Do you know how many hundred dollar bills that will be?” I was sincerely concerned for her safety, and I told her, “If you were my daughter, I would tell you to get a prepaid card.” That did the trick – we walked together to see the Asset Specialist and she opened the account.
C.A.S.H. Client Story of the Week (C.A.S.H. Tax Preparer): “A gentleman in his mid-70s came in to have a joint return prepared. He had five 1099-Rs. After completing his return I asked if he had received a NYS refund for 2009, he advised he had not. I was puzzled, since he was getting a $780 NYS refund on the return I was ready to file – all of which was the result of NYS taxes being withheld on 2 of his 1099-Rs. When I checked his 2009 tax return, done by a paid preparer, it showed no NYS taxes withheld and no refund, even though the 1099Rs for 2009 reported $780 of NYS tax withheld. He will be back in March to amend his return for 2009, and he intends to check 2008 and 2007 returns as they were all done by the same paid preparer.”
C.A.S.H. Client Story of the Week (C.A.S.H. Tax Preparer at a Partner Site): A gentleman and his wife come in to have their taxes done. He said he had always done his own taxes, but thought he’d take me up on my offer to prepare them this year. They had 2 adopted children and an income of around $25K. I did their return and told them how much they were getting back (about $10K between both returns) and their jaws hit the floor. They asked how that could be since he had very little withheld from his paychecks. I explained the Earned Income Credit and Child Tax Credit and that those credit were what was driving their refunds. They couldn’t believe it! He had always paper filed his own return by hand and had no idea those credits existed. I offered to take a look at their 2009 return, which he had filed as $0 returns because he had no withholding and no taxable income. I was able to get them another $10K in combined refunds. I just prepared their 2008 amended return, which had quite a bit more income, but they were still eligible for EIC and the child tax credit, so are getting back another $2K combined. Between all three returns they are getting back almost as much as he had made the entire year of 2010. They said this is such a blessing for them as they will now be able to finally get out of debt!
C.A.S.H. Client Story of the Week (C.A.S.H. Advisor): “ I was working as Cash Advisor with a 19 year old student. She had a W-2 showing only a little over $500. Although she lived with her parents, they were not claiming her as a dependent. When I asked why, she said they had no idea they could do that. When I suggested they come in she pointed to the adjacent desk, and said, “That’s them.” I realized Mom and Dad were deaf, and our deaf volunteer tax preparer was working with them. Before I left all three were sitting with the volunteer tax preparer, and the quality reviewer was checking things out!”

Thanks for your support of C.A.S.H. If you have any questions or suggestions, please feel free to contact me.

Sincerely,

Rita