Volunteer Income Tax Assistance

Transcription

1 Volunteer Income Tax Assistance The VITA Program provides free tax preparation services to low income residents of Winnebago County Tax Services Provided in Calendar Year

2 Site Coordinators Sue Panek Oshkosh Area United Way 36 Broad Street Oshkosh, WI Dr. Christopher Jones University of Wisconsin - Oshkosh 800 Algoma Boulevard Oshkosh, WI jonesc@uwosh.edu Oshkosh Area United Way 36 Broad Street Oshkosh, WI Tax Report Prepared by: Daniel Olk VITA Project Management Intern University of Wisconsin Oshkosh 6/2/16 Data results and analyses are based on either filing data or survey results. A survey was offered to every individual receiving VITA s free tax service in which 148 people agreed to fill out various demographic and personal information. 2

3 Oshkosh Area VITA Tax Year 2015 (Tax services provided during 2016 calendar year) OSHKOSH AREA VITA IMPACT VITA hosted a total of 9 tax preparation events for the 2015 tax year. Each tax preparation event allows for a total of 30 appointments. A total of 270 taxpayers scheduled appointments at the Oshkosh Area VITA site to have their tax returns prepared by certified volunteers. Some taxpayers were unable to be served due to the following reasons: Cancellation/No Show: 25 Did not have to file: 2 Out of scope: 3 Refused Filing: 2 Total: 32 Federal Tax Returns Federal Returns Accepted: 177 Federal Returns Rejected: 1 Federal Returns FSA: 84 Total Federal Returns: 261 State Tax Returns State Returns Accepted: 172 Total State Returns: % of taxpayers received their refund via direct deposit. Total Refunds Processed Federal Refunds: $159,381 State Refunds: $86,316 Total Refunds Processed: $245,697 Earned Income Tax Credit The earned income tax credit (EITC) is a refundable federal income tax credit for low to moderate income working individuals and families. Number: 42 Total: $50,865 Average Credit: $1,211 3

4 Child Tax Credit This credit is for people who have a qualifying child, as defined by the IRS. It is in addition to the child for child and dependent care expenses and the EITC. Number: 15 Total: $22,800 Average Credit: $1520 Additional Child Tax Credit (ACTC) Number: 11 Total: $14,147 Average Credit: $1,286 Education Credits There are two tax credits available to offset the costs of higher education. Number: 8 Total: $8,368 Average Credit: $1,046 VITA National Impact The VITA Program serves millions of taxpayers throughout the United States and continues to grow each tax year. The success of the program is guaranteed through the continual efforts of the many dedicated site coordinators and IRS certified volunteers. Identity theft continues to be a major concern for taxpayers in the United States. One of the many goals of the VITA Program is to educate taxpayers on the dangers of identity theft and how to defend themselves in the future. In order to better inform taxpayers about the danger of identity theft, taxpayers at the Oshkosh VITA site were given access to informational videos supplied by the IRS warning of the dangers of identity theft and how to recognize and prevent theft from occurring. Statistics for both the State of Wisconsin and National VITA Contributions are shown below: National Over 3 million taxpayers served million e-filed federal tax returns nationally 95.33% accuracy for the 2015 tax year State 72,517 e-filed federal tax returns 75,644 e-filed state tax returns 4

5 Demographics Served Introduction The VITA Program serves a diverse group of taxpayers in the Oshkosh area and Winnebago County. The VITA Program is dedicated to serving all qualified individuals within the community regardless of race, ethnicity, religion, age, gender, or sexual orientation. All qualified individuals are highly encouraged to take advantage of the services and benefits this program provides. Demographic Data A total of 9 VITA events were held for the 2015 tax year. At each event taxpayers were asked to complete a survey which contained various questions designed to collect demographic information. The following information is based on the responses of 148 Winnebago county VITA taxpayers. Gender Breakdown On average, more women than men participated in this year s VITA Program. The following table breaks down the gender data collected from 146 respondents. Table 1 Gender Gender Male Female Gender Breakdown Number of Taxpayers % 41% Percent 41% 59% Male Female Education Level The majority of taxpayers surveyed had at least a high school diploma or GED at 51%. The next largest segment of taxpayers was some college but no degree at 16%, followed by less than high school at 11% and 4 year degree also at 11%. 2 year degree was reported at 9% of taxpayers. Lastly, the smallest segment of taxpayers surveyed stated they had a graduate or professional degree at 2%. Table 2 Education Level Breakdown summarizes the taxpayer education levels and their corresponding percentages. Data was gathered from taxpayer survey responses acquired over the 9 VITA events of the 2015 tax year. 5

6 Number of Taxpayers Table 2 Education Level Breakdown Education Level 11% 2% 11% Less than high school 9% High School or GED Some college, but no degree 2 year degree (associates) 16% 4 year degree (bachelors) 51% Graduate or professional degree As part of the survey, taxpayers were also asked to report their age. The following data was collected from 148 respondents who reported their age. Table 3 Age Demographics Taxpayer Age Demographics Age Range The majority of taxpayers are aged 56 and older. The next largest age segment is ages 46-55, followed by ages The average age of a taxpayer who attended the Oshkosh Area VITA site is 53 years old. The following table displays the total amount of taxpayers that belong to each age segment that participated in this year s VITA program. 6

7 Table 4 Age Segment Totals Age Range Number of Taxpayers Percent % % % % % Total % Race/Ethnicity Taxpayers were asked to record their race/ethnicity as part of the survey. 147 taxpayers reported this information in the survey. The following chart breaks down the taxpayers based on their ethnic/racial background. Table 5 Race/Ethnicity Breakdown Race Number of Taxpayers Percent White % Black 7 5% Hispanic 8 6% Asian 2 1% Native 2 1% Other 5 3% Total % A large majority of the taxpayers present at this year s VITA identified themselves as White/Caucasian at 84%. The next largest ethnic/racial group was Hispanic at 6%, followed by Black/African American at 5%. 3% identified themselves as Other. Asian and Native American both registered at 1%. Language Of the 146 taxpayers that responded, 95% reported they spoke English as their primary language at home. 3% reported Spanish as their primary language. 2% identified their primary language as other. The following table summarizes the language data acquired from the survey. Table 6 Primary Language Spoken at Home Language Number of Taxpayers Percent English % Spanish 5 3% Hmong 0 0% Laotian 0 0% Other 2 2% 7

8 Number of Residents Living in the Home Taxpayers were asked to report how many people they lived with at home. The following tables summarize the survey data collected from 144 respondents. Table 7 Number of Residents Living at Home Number of People at Home Number of Taxpayers Percent % % % 4 8 5% 5 5 3% 6 3 2% 7 1 1% Total % Number of Residents Living at Home Breakdown 7 Number Living at Home Number of Taxpayers 79% of the taxpayers who responded to the survey have either 1 or 2 people living with them at their residence. 18% have either 3, 4, or 5 people living with them at home. 3% of taxpayers have 6 or 7 people living with them at home. Taxpayer Living Situation As part of the survey, taxpayers were asked where they currently live. Taxpayer living situation data is summarized in the table below. 8

9 Table 8 Taxpayer Living Situation Type of Residence Number of Taxpayers Percent Rented home or apartment 76 62% Family 37 8% Owned Home or apartment 14 27% Student housing 8 1% Someone else 5 2% Homeless 3 0% Total % A majority of taxpayers surveyed reported that they lived in a rented home or apartment at 62%. 8% of taxpayers indicated that they currently live with family. 27% stated they lived in a home or apartment that they own. 1% currently live in student housing. 2% of taxpayers live with someone else. Lastly, 0% of taxpayers surveyed reported that they were currently homeless. Residence of Taxpayers Served The Oshkosh Area VITA Program served many taxpayers in The majority of taxpayers are residents of Oshkosh and surrounding Winnebago County. The following chart summarizes the residences of the VITA taxpayers for the 2015 tax year. Information is based on survey data and taxpayer filing data. Table 9 Residence of Taxpayers Served Resident Location Number of Residents Oshkosh 148 Omro 6 Fond Du Lac 4 Winneconne 4 Appleton 2 Other 10 Income Limits A review of taxpayer s income using fiscal year 2016 HUD income limits for Winnebago County revealed: 72% of taxpayers were extremely low income, 12% of taxpayers were very low income, 11% of taxpayers were low income, and 5% of taxpayers were above low income. 9

10 Table 10 Income Limits Income Limits Number of Taxpayers Percent Extremely Low 94 72% Very Low 16 12% Low 14 11% Above low Income 7 5% Income Limits Breakdown 11% 5% 12% 72% Extremely Low Very Low Low Above low Income Taxpayer Filing Status The Oshkosh Area VITA Program serves various taxpayers with different filing statuses. Each taxpayer is classified into a particular filing status based on the IRS classification of status: 75% of taxpayers served were single, 16% of taxpayers served were married filing jointly, 8% of taxpayers served were head of household, and no taxpayers reported that they are married filing separately. TAXPAYER FILING STATUS 16% 9% Table 11 Taxpayer Filing Status Filing Status Number of Taxpayers Single 130 Married filing jointly 28 Head of household 15 Single Head of household 75% Married filing jointly Married filing seperately 10

11 Saving and Banking Habits Taxpayers were asked to complete a survey regarding their saving and banking habits. The following information was gathered from the taxpayers who completed the survey: Currently do you find it difficult to pay any of your loans or debts? Yes: 56 No: 68 Currently do you have a checking account? Yes: 120 No: 14 Currently do you have a savings account? Yes: 105 No: 26 Currently do you have a credit card? Yes: 84 No: 49 Currently do you have a CD or investment account? Yes: 33 No: 88 Table 12 Taxpayer Banking Habits 55% 10% 20% 37% 73% 45% 90% 80% 63% 27% Difficulty Paying Debt Checking Account Savings Account Credit Card CD/Investment Account No 55% 10% 20% 37% 73% Yes 45% 90% 80% 63% 27% Refund Plans Taxpayers were asked what they plan to do with their refund. Of the 148 respondents, 52 plan to pay bills, 15 plan to buy something, 36 plan to pay debt, 27 plan to put some or all of their refund into savings, and 18 taxpayers indicated they had another use for their refund. Taxpayer refund plans are summarized in the following table. Table 13 Taxpayer Refund Plans Taxpayer Refund Plans Number of Taxpayers Pay Bills 52 Buy Something 15 Pay Debt 36 Savings 27 Other 18 Total

12 Based on the survey data collected form the Oshkosh Area VITA Site taxpayers, Most Taxpayers plan to use their tax refund to pay bills or pay off debt. A smaller group of taxpayers plan to deposit some or all of their refund towards their savings. Lastly, a small group of taxpayers plan to use their refund to buy something or have another use for their refund. New vs Returning Taxpayers Several methods were used to market the VITA program to both new and returning taxpayers. The goal was to reach as many taxpayers as possible who can benefit from the free tax assistance program. Taxpayers were asked to indicate if they have used Oshkosh Area VITA previously. Of the 144 responses, 66 taxpayers indicated yes, while 78 taxpayers indicated no. New Taxpayers Returning Taxpayers 46% 54% Table 14 New vs Returning Taxpayers New vs Returning Taxpayers New Returning Returning New Total Affordable Care Act (ACA) The Patient Protection and Affordable Care Act (PPACA), commonly called the Affordable Care Act (ACA) or Obamacare, is a United States federal statute signed into law by President Barack Obama on March 23, Under the Affordable Care Act, hospitals and primary physicians are transforming their practices financially, technologically, and clinically to drive better health outcomes, lower costs, and improve their methods of distribution and accessibility to health care. The ACA was enacted to increase the quality and affordability of health insurance, lower the uninsured rate by expanding public and private insurance coverage, and reduce the costs of healthcare for individuals and the government. 12

13 Volunteers from the Oshkosh Area VITA Site performed exceptionally in response to the implementation of the tax provisions of the Affordable Care Act. Navigating through the Affordable Care Act was challenging as taxpayers had more complicated situations this year, training on the ACA complications was delivered late into the filing season, and many individuals received revised forms. The Oshkosh Area VITA volunteers with the guidance of Sue Panek, Dr. Cristopher Jones, and other experienced tax volunteers from Winnebago County and the University of Wisconsin Oshkosh managed to prepare accurate returns and explain the ACA options to the taxpayers they served. Oshkosh Area VITA ACA information: Full year coverage: 156 Shared responsibility payment due: 9 Dollar amount of SRP: $2,374 ACA Exemptions: Marketplace Granted: 0 IRS Granted (7A) household income: 12 IRS Granted (7B) gross income: 2 Total IRS Exemptions: 16 Health Insurance Coverage Taxpayers were asked if their health insurance covers them for the full year, partial year, or if they had no health insurance coverage at all. The following table summarizes the taxpayer health insurance coverage data acquired from 130 respondents. Table 14 Taxpayer Health Insurance Coverage Health Insurance Coverage Number of Taxpayers Percent Full Year % Partial Year 8 6% No Health Insurance 8 6% Total % The majority of taxpayers surveyed at the Oshkosh Area VITA Site had full year health insurance coverage at 88%. 6% of taxpayers had partial year coverage. Another 6% of taxpayers indicated they had no health insurance coverage. Health Insurance Enrollment Assistance There was a representative from Health Insurance Marketplace Enrollment Assistance Center each Saturday during the Affordable Care Act open enrollment period, which included eight of 13

14 the nine Saturdays. The representative was there to answer questions taxpayers had about healthcare. MyFreeTaxes MyFreeTaxes online (myfreetaxes.com) is an excellent resource for people to file their state and federal tax returns online for free. It is a partnership between United Way Worldwide,, Wal*Mart, H&R Block and Goodwill Industries. Anyone taking advantage of this resource is expected to complete their return independently, but because many people feel uncomfortable filing their taxes on their own, the VITA site offered to help anyone filing through MyFreeTaxes during their appointment times. The following information was gathered from taxpayers who used MyFreeTaxes during the 2015 tax year: Through the MyFreeTaxes self-help option, an additional 2,841 federal returns were filed in the state of Wisconsin For those in the Oshkosh area who used the MyFreeTaxes self-help option, 71 e-filed returns for an average return of $1, people who earned an EITC had an average EITC of $1, Taxwise.com Taxwise.com (twonline.taxwise.com) is another great resource for people to file their state and federal tax returns. TaxWise is a tax preparation software product used by both tax professionals and accountants. TaxWise is the supported and approved tax preparation software used at the VITA sites. TaxWise differs from other tax preparation software because it is designed to deal with and manage large numbers of returns. With speed and accuracy of data entry vitally important, the emphasis is on minimizing number of keystrokes and instructions to read during tax preparation. TaxWise was essential in the processing of tax returns and proved to be a reliable and important partner in the success of the VITA Program this tax year. 14

15 Volunteer Contributions VITA volunteers were a mix of University of Oshkosh College of Business students, a Human Service intern and residents of Oshkosh and neighboring communities. The Oshkosh Area VITA site had a total of 32 volunteers. VITA volunteers devoted a total of 732 hours of service assisting taxpayers throughout the season. The 32 certified tax preparers committed additional time to the project in terms of completing the IRS s online link & learn program, as well as attending a local training session held at UW-Oshkosh Sage Hall computer lab. Volunteer efforts are valued at $23.56 per hour, according to The collective dollar value contribution using the 732 direct hours is $17, Partner Contributions Oshkosh Area United Way Executive Director of the Oshkosh Area United Way, Sue Panek, served as this year s VITA site administrator. In addition to providing leadership and guidance, Sue facilitated the smooth operation of the VITA site through each of the eight VITA events for the 2015 tax year. The Oshkosh Area United Way also contributed in the following ways: Facilitated in volunteer training and development Recruited volunteers and promoted the VITA site to Winnebago County residents Provided office equipment and supplies Scheduled all tax preparation clients University of Wisconsin Oshkosh College of Business The University of Wisconsin Oshkosh College of Business contributed to the success of the VITA program through the involvement of Dr. Christopher Jones and Dr. Peter Westort. Dr. Jones and Dr. Westort contributed their valuable tax expertise as well as acting as site quality reviewers. United States Internal Revenue Service (IRS) The IRS assisted in volunteer training, acted as a resource for the planning team, provided regular tax updates, and provided materials to aid volunteers in preparation for certification exams. Fox Valley Technical College Fox Valley Technical College in Oshkosh provided VITA with an exceptional space to host each tax preparation event. The staff was extremely hospitable, friendly, and always willing to assist in whatever needs the VITA staff required. 15

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