It’s the time of year for H&R Block signs, Jackson Hewitt signs and for W-2 forms to come in the mail. Tax season is here and SaveFirst, a non-profit tax preparation initiative is opening two sites in Tuscaloosa.
Sarah Louise Smith, executive director of Impact Alabama said the new addition this year came with the increased number of students that joined the program.
“We have about 50 to 60 students that have already gone through their training and the certification,” she said. “The students will be a part of a poverty course and perform taxes for these families.”
Regional coordinator Glynnis Ritchie said SaveFirst serves low-income families and individuals. The service is free if you meet the requirements for households. You must make less than $50,000 per year with kids in the home or $20,000 per year without kids in the home.
“Our tax prep services are aimed at assisting families eligible for the Earned Income Tax Credit,” she said.
The EITC is the federal government’s largest and most successful antipoverty program for low-income, working families.
Smith said the new addition will be in the Holt community and their goal this year is to exceed the numbers from last year by 10 to 15 percent locally and statewide.
“Last year in Tuscaloosa, we were able to serve over 600 families with our location at the housing authority,” she said.
According to their website, more than 500 trained students from more than 10 campuses prepared tax returns for more than 3,500 families at 16 sites statewide.
Ritchie told of her experiences with seeing single moms coming into her site with two or three children to get her taxes done. She said she knows that when they finish their return and see their check they feel some form of relief.
“SaveFirst and access to free tax preparation has a huge effect on the people we serve, and I’m so excited to be a part of that,” she said. “To meet and interact with the people you are helping directly and to see the children who will benefit from the refund that you’ve helped calculate is an amazing experience.”
The SaveFirst website also states how many low-income households are eligible for the EIC and other tax credits but are unaware of their existence and thus do not apply for the annual refunds.
The IRS estimates that 15 percent or more of EIC refunds are unclaimed by low-income families, which amounts to approximately $2.7 billion each year.
Louise said another program that is starting this year in addition to SaveFirst is called, “SaveNow, WinLater Sweepstakes.”
“The program provides incentive to those families that commit to saving modest amounts that seeks to encourage persons to save their money,” Louise said.
Each time a family puts $50 towards a savings bond, they are entered into a drawing pool for the chance to win $20,000 at the end of tax season.
“Even if families don’t win the grand prize, they still walk away with savings bonds and an investment in their future, or the future of their children,” Ritchie said.
