The Volunteer Income Tax Assistance Program: A Better (and Free) Choice for Your Taxes

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The VITA program is here to make tax season a breeze! In this episode, we speak with Michelle Lyons, the director of financial stability at the United Way of Greenville County, to learn more about this amazing program that offers free tax preparation services to those who make under $60,000 a year. Find out how to qualify, schedule an appointment, and navigate tax season with ease. VITA is powered by United Way of Greenville County.

Transcript

Nathaniel DeSantis
For 100 years United Way has been there for Greenville County, harnessing the collective generosity of this community to help those in need. Now it’s our turn to shape the future. While parts of Greenville County continue to boom, many others are struggling. Growing disparities across the board and education, income and housing are leaving too many people behind. At this pivotal moment, we asked you to help shape the kind of community we will be for the next 100 years, one where all people have access to the opportunities to achieve their full potential. Give now at UnitedWaygc.org.

Katy Smith
Tax season is here. And if you didn’t realize that because of the W2 that you’ve received, you definitely know it by seeing people in costumes on corners dancing with headphones on beckoning you to their tax preparation services. Today, we want to give you a better choice. We are going to talk to Michelle Lyons, director of financial stability at the United Way of Greenville County, who oversees the Volunteer Income Tax Assistance (VITA) program. This amazing program prepares taxes for free for 1000s of residents of Greenville County each year. We want you to listen and learn about it. We want you to take advantage of it if you qualify for it. And be sure to tell your friends and family about it too.

Katy Smith
Michelle, thanks so much for being here today.

Michelle Lyons
Thank you for having me.

Katy Smith
All right, tell us about VITA what it is and who it serves.

Michelle Lyons
Our VITA program is the Volunteer Income Tax Assistance program. It serves anyone in the upstate that makes less than $60,000 a year.

Katy Smith
Excellent. So that’s the only qualification, it’s just under 60,000.

Michelle Lyons
Under 60,000. There are some very small limitations within that. But most people are in scope to be able to get their taxes done.

Katy Smith
That’s amazing. So if I qualify and I get my W2, what do I need to do to get my taxes prepared?

Michelle Lyons
The first thing that you would need to do is to call 211 in order to schedule that appointment. Once you do that, you will get set up with a site that’s closest to your home location, or work location, whichever works better for you. When you come into that appointment, we ask people to try to arrive 15 minutes early. In order to start intake paperwork and get all the information together that’s needed to file your taxes. You’ll need to be able to bring in your ID as well as social security cards for everyone that is in the household that you’ll be filing taxes for

Katy Smith
Okay, excellent. And Hhw long does it take, typically?

Michelle Lyons
The average appointment takes about one hour.

Katy Smith
Wow, that is amazing. How many folks take advantage of the program each year.

Michelle Lyons
This past year, we had around 8,000 tax returns filed so close to 8,000 people across the upstate.

Katy Smith
All right now I know that come January, end of January, definitely in February, a lot of times as I’m driving around town, I see people in costumes, dancing on corners, beckoning me into their parking lot, where they will prepare my taxes. Maybe their costumed in the office, I do not know. Tell me why I should maybe keep going past those costumed folks and come on to VITA. What can I get through VITA that’s better for me than at one of those other places?

Michelle Lyons
Our VITA program is entirely free. That’s exactly what you get. Our tax preparers are trained in tax law and have a better… have a good understanding of tax information. And all of our tax returns that are completed on our VITA sites are quality reviewed. So you know that you’re getting the same quality tax return as you would if you were going into any of these tax preparation places. The average tax preparation place is going to charge an individual with a basic W2 approximately $250 to get their taxes completed. We know that that is really difficult for our low income families in our communities and they need every dollar that they that they earned back in order to sustain throughout the next year using those tax returns for that.

Katy Smith
Alright, I hope everyone really heard that. So you can go to a tax storefront that you see all over maybe half costumes, maybe not. And you can expect to pay maybe $250 to get your taxes done. What’s the refund turnaround there versus through the VITA program?

Michelle Lyons
The refund turnaround is the same.

Katy Smith
The same?

Michelle Lyons
Yes.

Katy Smith
So I can come to VITA for free, ave my taxes prepared and quality checked, and get my refund in the same amount of time as I could at some other location that’s going to charge me around $250?

Michelle Lyons
That’s correct. If you wanted your refund at one of those other locations sooner, you’re getting what’s called a refund anticipation loan. And you’re going to be charged additional interest rates and fees in order to get your refund that day, which is even more detrimental to families I’ve seen people have to pay almost $1,000 of their refund back to the tax preparation place.

Katy Smith
Oh my gosh. And that’s folks hard earned money that is going instead to the tax preparer just to get it a little bit sooner. What is the usual wait time for a refund once it’s filed?

Michelle Lyons
The typical time to get your return back is about three weeks.

Katy Smith
Okay. All right, everybody, so get on it. So knowing that people are paying tax preparers to do the same thing that VITA is doing, because of the impact of VITA doing 8,000 or so tax returns, what kind of impact have you had?

Michelle Lyons
Yeah, we have been able to save individuals over $1.4 million in tax prep fees. And that’s just an average that is taking that average $250 per tax return in determining that over 8,000 tax returns that were completed. So we know that number may even be higher.

Katy Smith
Oh my gosh, what is so cool about that is, of course, the benefit to the individuals who have not had to spend that 1.4 million. But it also underscores the importance and the gift that those volunteers give. And so if folks want to go back and listen to the episode on December 20, in which we talked to Tiffany banister about volunteering, you can hear how as a volunteer, you are essentially contributing $1.4 million to the pockets of residents who’ve been able to avail themselves of your services. That is so incredible. What are some success stories you can share with us?

Michelle Lyons
I have a great success story. We had an individual who was referred to us by a community partner that had recently been released from prison, his name was Mr. Smith. And he was living on the streets and couldn’t afford first month’s rent and security deposit. He was referred to us because he hadn’t gotten his stimulus check and needed to file his taxes in order to do that. And so we were able to connect with Mr. Smith and be able to complete his taxes. And he was also able to then get into permanent housing with that. So it was really impactful. And one of the other things that he was able to do, he didn’t have a bank account when he first came in. So the length of time to get your refund often can take six to eight weeks if you have to wait for a paper check. So we were able to connect him with our focus cards, which is a low cost banking option that provides the same typical low fee service as a bank or credit union with very little fees. And so he was able to get a checking account opened with our focus cards and be able to still get that return and then become banked as well.

Katy Smith
That is so amazing. So you helped him in so many ways beyond I mean, that return opened up so many other doors. That actually raises a point that to get that refund electronically, folks need to have a bank account in place, or get access to a focus cart through through you all. So this is going to air at the beginning of January. So it gives everyone a little heads up that if you’re not yet banked, that’s something you can work on this month in anticipation. And you could do it through self help credit union or any of our other good community partners in town correct?

Michelle Lyons
That’s correct.

Katy Smith
Outstanding. So since it’s wonderful volunteers that are helping folks, I’m sure you have some really neat stories that clients share about the volunteers that they’ve worked with. What do you hear about other benefits beyond the free tax prep that folks who use VITA get to enjoy?

Michelle Lyons
Our clients at VITA have really enjoy their experience with the volunteers, and they’ve always expressed that they were willing to listen to them, hear their stories, and even connect them to other community resources that are needed in the community. Or for them or their family members. Whether it’s utility assistance, or food or maybe even a local shelter. All of those things are provided with information at our VITA tax sites. We also have information on different financial coaching programs. So if individuals want to work toward bigger financial goals, whether it be homeownership, or purchasing a car or saving for retirement, those are options that we can refer folks to as well.

Katy Smith
That is amazing. I’m so glad that you’ve been able to come on today Michelle, because I really hope that if you’re listening and you could qualify for this service and haven’t yet used it that you check it out at UnitedWayGC.org and have a VITA volunteer prepare your taxes and that you spread the word to your friends. I mean 8,000 tax returns doesn’t suggest this is a well kept secret. People know about it, but not enough people know. So we really hope that all of you listening will spread the word to friends and family members and neighbors. Anything else Michelle, that you’d like to share?

Michelle Lyons
Just want to share, wait to get your taxes done during regular tax season, feel free to call 211 and get an appointment scheduled and we would love to serve you.

Katy Smith
It’s only three numbers to remember, 211. Well, we are so glad that you were on today Michelle and for all that you do. And remember everyone, give 211 a call to get your taxes prepared quickly and for free. Thanks so much to you and for all the work that everyone at United Way does to make our community better.

Michelle Lyons
Thank you for having me.

Catherine Puckett
Simple civics Greenville County is a project of Greater Good Greenville. Greater Good Greenville was catalyzed by the merger of the Nonprofit Alliance and the Greenville Partnership for Philanthropy. You can learn more on our website at greatergoodgreenville.org This is a production of the Greenville Podcast Company.

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