Tobey Daviesⁱ
Southern New Hampshire University
Center for Community Economic Development & Disability

Last year, Jackelyn Cooper* couldn't believe the cost savings she realized after she began using the free tax preparation services offered by the Manchester Community Resource Center (MCRC). Cooper is a working single mom who patches together as many work hours as she can between bringing her son, who has multiple disabilities, to and from therapy appointments and educational programs. When she learned about the Volunteer Income Tax Assistance program, she jumped at the opportunity. It saved her more than $200, what she would ordinarily pay a professional preparer, and she received a tax refund of more than $2,000, a substantial sum of money for a family living on modest wages and Social Security disability benefits.

Like Cooper, approximately 50 people in Manchester, N.H., were able to access the Earned Income Credit for the first time last year due to a convenient mobile tax unit made available by MCRC and hosted by Easter Seals. This year the center has gone beyond helping people get their tax refunds, offering financial literacy and asset building information to clients. A center-formed coalition of other like-minded institutions is seeking to focus in part on those with disabilities, who often are overlooked.

MCRC is a nonprofit, community-based organization serving Manchester's low- and moderate-income families and individuals, particularly those living in the center of the city. The center's clientele includes single-parent families, the working poor, people with disabilities, refugees and immigrants and people receiving public assistance. A variety of educational and support services are offered, including English instruction, computer training and a variety of work force development programs designed to give residents a foothold to improve their economic livelihood.

MCRC has been involved in the VITA project for the past five years. Through this project, in collaboration with the local Internal Revenue Service SPEC Office, MCRC has served more than 1,200 taxpayers with Earned Income Tax Credit Outreach, free tax return preparation and electronic filing. Today the program is the largest VITA site in Manchester and a trusted source of information for the growing population of immigrants and other hard-working families trying to make ends meet. Preparers are available during the tax return season during scheduled weekdays, evenings and weekends on a first-come, first-serve basis. It is not uncommon to find a line of 50 people or more waiting outside on a cold winter day to file their taxes.

"Financial stress is a constant concern for many people, including the people we serve. We are very pleased to be a site and to be part of a program that will assist our client's find ways to improve their financial decisions. The Mental Health Center of Greater Manchester recognizes that it is extremely important that human services organizations continue to find ways to work together. The VITA project is just another positive step in this direction."
Peter Janelle-President/CEO, Mental Health Center of Greater Manchester

Manchester is part of the TAX FACTS Campaign to increase the awareness and inclusion of people with disabilities in the entire tax filing process. The TAX FACTS Campaign- an initiative sponsored by the NCB Development Corporation (NCBDC) /National Disability Institute (NDI); National Cooperative Bank; the Law, Health Policy and Disability Center, University of Iowa; The Office on Disability, U.S. Department of Health and Human Service, and the Internal Revenue Service Stakeholder Partnership Education and Communication (IRS SPEC) initiative- began in 2004 with 11 cities and has expanded to 31 cities in 2006.

During the 2004 tax season, MCRC decided that while the VITA program was a good start, it doesn't go far enough. Many taxpayers were spending their refunds on junk cars with high-cost repairs only a day away and paying off bill collectors, as well as using costly forms of credit, such as payday lenders and rent-to-own centers. Although the refunds temporarily alleviated financial pressures, center staff believed that an expanded approach was needed to help constituents focus on longer-term goals and make their money stretch as far as it could go.

In response, MCRC started the Greater Manchester Asset Building Coalition (GMABC) to expand services beyond free tax preparation to include asset-building services. The coalition includes members from the IRS, banks, credit unions, community development lenders, financial educators, and other community based organizations. The coalition facilitates tax preparation, financial education, Individual Development Accounts and financial services available at MCRC, local banks, credit unions and innovative lending programs, such as Bonnie CLAC, a nonprofit organization that helps people with credit issues or financial challenges finance new vehicles. It is hoped that such services will help residents build assets and be diverted away from predatory practices that exploit their lack of information or economic hardship for profit.

MCRC and the GMABC realize that people with disabilities have been underserved with asset building opportunities, and felt strongly that this specific population required additional marketing and service efforts encouraging them to utilize the opportunities available. The co-facilitator, Torey Kortz, has a son who is Autistic. She knows first hand how challenging getting the word out to people can be. "One way to accomplish this was to bring the services of the free tax preparation program to the agencies serving people with disabilities", Kortz said, "and to enlist the assistance of caseworkers and agency personnel in referring clients who may benefit from the services."

This upcoming tax season will see an expansion of the mobile tax service conducted last year with Easter Seals to include additional sites at organizations providing services to people with disabilities, including New Hampshire Vocational Rehabilitation; Moore Center Services, the area agency serving individuals and families with developmental disabilities; and The Mental Health Center of Greater Manchester. The effort is part of a research study being conducted by the Center for Community Economic Development & Disability at Southern New Hampshire University for the Asset Accumulation and Tax Policy Project. Along with tax preparation, eligible participants will be offered household budgeting and credit counseling assistance as well as Social Security and Medicaid work incentives counseling. They'll also receive information about IDAs, which can be used for postsecondary education, business development and home ownership, the Family Self Sufficiency program and other resources to help them meet their financial goals.

In January, more than 20 volunteers will be educated on tax law, quality assurance and customer service relations. This year, a section on disability etiquette and tax features specific to people with disabilities has been added. Bradley Holt, a volunteer tax specialist for MCRC, learned about VITA when applying for the IDA program.

"People with disabilities need to claim every deduction they can, and take advantage of any tax credit that is out there," he said. "I'm glad I can be a part of this and help out."

Cathy Flynn, senior tax specialist with the IRS SPEC office, agrees that including people with disabilities and the organizations that serve them in outreach efforts makes a lot of sense.

"Because the disabled population is often low-income, the SPEC office wants to make sure taxpayers with disabilities are aware of the free tax preparation available through the VITA and AARP tax sites," she said. "Our office recognizes that this group is traditionally underserved, especially when it comes to understanding the credits they are eligible to claim. The SPEC is trying to serve people with disabilities as they would any other group, by raising awareness."

*Name has been changed to protect privacy.

i Tobey Davies is Director of the Center for Community Economic Development & Disability (CCEDD), sponsored by the School for Community Economic Development at Southern New Hampshire University, in collaboration with the University of New Hampshire Institute on Disability. CCEDD and the School's Applied Research Center are the active partners from Southern New Hampshire University in the Asset Accumulation and Tax Policy Project. For more information, contact her at t.davies@snhu.edu.