Expanding the VITA Scope for the Self-Employed

Transcription

SETI
Expanding the VITA Scope
for the Self-Employed
Tax Year 2011 Schedule C VITA Pilot | Year 2
CFED’s Self-Employment Tax Initiative (SETI), the
National Community Tax Coalition (NCTC) and the IRS
Stakeholder Partnerships, Education and Communication
(IRS-SPEC) teams have worked together for the past two
years to implement a pilot initiative testing the viability of
expanding the parameters of Volunteer Income Tax Assistance
(VITA) programs to include broader Schedule C preparation.
During the first year of the pilot, twelve community-based tax
preparation providers delivered tax assistance to low-income
self-employed tax filers. The success of the pilot in tax season
2011 led to the extension of the program into the 2012 season
and brought with it four additional community-based tax
preparers. This report documents the data collected by the
sixteen Schedule C VITA Pilot organizations that served over
9,000 self-employed tax filers during tax season 2012.
What is VITA?
Volunteer Income Tax Assistance
(VITA) is an IRS-sponsored, communitybased program designed to help low- and
moderate-income taxpayers complete their
annual tax returns at no cost. Each year,
thousands of volunteers are trained and
certified to prepare millions of income tax
returns at more than 12,000 VITA sites
across the country. In tax season 2011,VITA
programs filed nearly 150,000 Schedule C
or C-EZ forms for self-employed taxpayers.
Background
Currently, IRS policy defines a scope of tax preparation services that VITA programs can offer and for which
volunteers can become certified. These parameters were created in order to guarantee the quality of returns filed
and to ensure that volunteers, time and resources are maximized to help low-income families comply with their
tax liabilities and access the tax credits for which they are eligible. Schedule C is the form on which self-employed
taxpayers report their income and some expenses. Beyond certain very basic, limited circumstances, Schedule C is
out of scope for VITA programs and filers with business income are often turned away. The Schedule C VITA Pilot
has allowed participating VITA programs to expand their services to include broader Schedule C preparation during
the 2011 and 2012 tax seasons.
For more detailed background information on the Schedule C VITA Pilot, see the Tax Year 2010 Final Report. To learn
more about the significance of scope expansion, take a look at The VITA Value Proposition: Expanding Free Tax
Assistance Program Parameters to Empower More Low-Income Microbusinesses.
The Partners
In 2010, SETI, NCTC and IRS-SPEC successfully partnered to develop a framework and parameters for the first
year of the Schedule C VITA pilot and to identify experienced community-based VITA programs—this framework
was updated for the 2012 tax season. In preparation for and throughout the tax season, SETI, NCTC and the sixteen
local partners participated in monthly conference calls to discuss planning, pilot parameters, data collection, testing
1200 G Street n Suite 400 n Washington, DC 20005 n 202.408.9788 n www.cfed.org
requirements, training techniques and a range of other topics. The local partners also shared Schedule C training
materials, intake tools, assessment and quality review forms, tax filer organizers and other materials throughout the
planning period. Those materials have been collected and are catalogued on the SETI Resource Bank website, an
online compendium of strategies and tools for leveraging tax time to empower entrepreneurs.
SETI works to ease the tax challenges faced by low- and moderate-income business owners who are pursuing
economic success through entrepreneurship by supporting programs that offer tax assistance, promoting sound
policy and conducting research. Over the past six years, SETI has partnered with local non-profit tax preparation
services that have prepared business tax returns for over 45,000 low-income business startups. Between 2006-2009
CFED ran the SETI Demonstration to test out this approach on the ground. Visit us at www.cfed.org/programs/seti/ for more
background.
NCTC is the nation’s largest, most comprehensive membership organization for community-based organizations
offering free tax and financial services to low-income working families. NCTC is dedicated to strengthening
economies, building communities and improving lives through tax assistance and asset building activities that
produce financial security, protect families, and promote economic justice.
IRS-SPEC is the outreach and education function of Internal Revenue Service’s Wage and Investment Division.
SPEC’s mission is to assist taxpayers in satisfying their tax responsibilities by building and maintaining partnerships
with key stakeholders who also seek to create and share value by informing, educating, and communicating with
their shared customers.
The Schedule C VITA Pilot Local Partners are sixteen organizations operating VITA sites with experienced
volunteers and staff with the skills and knowledge to file Schedule C tax returns. Each of the programs participating
demonstrated a commitment to low-income self-employed clients, asset-building and quality tax assistance. All of
the local partners either participated in the SETI Demonstration between the 2005 and 2009 tax years or are NCTC
affiliates.
Table 1: Schedule C VITA Pilot Local Partners
Schedule C VITA Pilot Local Partners
Real $ense Prosperity Campaign
El Paso Affordable Housing M
East Bay Asian Local Development Corporation
Location
Number of Sites Reporting
Jacksonville, FL
24
El Paso, TX
21
Oakland, CA
2
Rural Dynamics, Inc.
Great Falls, MT
40
Just Harvest Education Fund*
Pittsburgh, PA
No Data
Colorado East Community Action AgencyM, NEW
Stratton, CO
3
United Way of Central Alabama
Birmingham, AL
2
Foundation Communities
Austin, TX
10
KC CASH Coalition, Inc.
Kansas City, MO
2
Detroit, MI
23*
Chicago, IL
12
St. Paul, MN
12
San Antonio, TX
1
M, NEW
Accounting Aid Society
Center for Economic ProgressM
AccountAbility Minnesota
M
St. Mary’s University
Tax-Aid
San Francisco, CA
1
Atlanta Prosperity CampaignNEW
Atlanta, GA
39
Campaign for Working Families
Philadelphia, PA
14**
NEW
M
Those organizations marked with an “M” also operate mobile tax preparation units.
NEW
Those organizations marked with “NEW” were added to the pilot for the 2012 tax season.
*All 23 of Accounting Aid Society’s sites prepare Schedule C-EZs, but only 5 of those sites prepare full Schedule Cs.
**All 14 of Campaign for Working Families’ sites prepare Schedule C-EZs, but only 3 of those sites prepare full Schedule Cs.
— Page 2 —
Expanding the VITA Scope for the Self-Employed: Tax Year 2011 Schedule C VITA Pilot / Year 2
Pilot Parameters
The sixteen local partners delivered Schedule C tax assistance to income-eligible taxpayers with self-employment
income during the 2012 tax season. The parameters created for the tax year 2010 pilot were altered for the second
year and only self-employed filers who fell within the guidelines below were eligible to receive assistance at
Schedule C VITA Pilot sites:
n Business expenses up to $25,000
n Business losses confined to a single tax year and with no carry back or carry forward
n Business use of the home was limited to childcare providers that either rent or own their homes
n Section 179 depreciation only so long as total business expenses did not exceed $25,000
n
Limited Modified Accelerated Cost Recovery System (MACRS) deductions
n No businesses with inventory
n No Net Operating Losses (NOLs)
n Only cash basis taxpayers
n No businesses with employees
94.7%
IRS Oversight & Accuracy
Many of these programs operate numerous VITA sites, but
only up to three sites per organization—a total of 46 sites,
including one mobile site—were subject to IRS oversight
through visits to observe Schedule C volunteer trainings
and to review Schedule C tax preparation during the
season. Members of the IRS-SPEC team, comprised of SPEC
headquarters and field employees, observed nine training
classes, including one web-based curriculum. They visited at
least one VITA site per organization, for a total of 15 visits, and
conducted 19 Schedule C Return reviews.
Accuracy Rate
Only one of the nineteen
Schedule C returns reviewed by
IRS staff was inaccurate
Site Procedures
To compensate for the fact that more time and attention are required to complete a return for a self-employed
taxpayer than for a wage-earning filer, many sites have designed intake procedures—including phone interviews,
intake sheets, recordkeeping tools, pre-screenings for appointments and so on—to gather more detailed
information about their Schedule C filers to guarantee that their filing needs fit the pilot parameters. To see how
programs accommodated self-employed taxpayers—whether by appointment, as walk-ins or on a designated
day—see Table 3 in Appendix. Most programs also take time after preparing taxes to educate their Schedule C
clients about the importance of detailed recordkeeping throughout the year, and many offer additional tools—
organizers, expense trackers, additional classes, and IRS publications—and advise filers to use them to prepare for
the upcoming year.
Tax Preparers
Each local partner agreed to secure experienced paid staff or
volunteers to prepare Schedule C returns. All preparers are
required to participate in a Schedule C Training, successfully
complete the VITA Certification Test at the Intermediate
Level and pass the Schedule C certification test designed by
the IRS with local partner representatives. Three of the local
partners utilized all volunteer preparers, while the rest split
the workload between volunteers and paid staff (See Table 2
in the Appendix).
59%
41%
Volunteer
Preparers
0%
25%
Paid
Staff
50%
75%
100%
— Page 3 —
TAXPAYER PROFILE
9,063
Who Was Served?
Self-Employed Taxpayers
75%
with AGI below $30,000
ME
Under $5,000
$5,000 - $15,000
0%
25%
$15,001 - $30,000
50%
$30,001 $40K
$50K
$40,000
> $50,000
INCO
100%
75%
How many taxpayers filed on Schedule Cs or C EZ?
On average, about two thirds of the self-employed taxpayers served by the pilot sites reported their income on a
Schedule C EZ, while the rest filed on a C. Taxpayers can report profit or losses from self-employment on either
a Schedule C or C EZ form. The Schedule C EZ is a simplified form of the Schedule C, and in order to file on a
Schedule C EZ taxpayers must not exceed certain eligibility requirements. Among other limitations, Schedule CE Z
filers must have business expenses below $5,000, use the cash accounting method and have no inventory during the
year.
Schedule C
Schedule C EZ
AAM
On average, how
many self-employed
taxpayers were male
and how many were
female?
AP
AAS
CWF
CEP
CECAA
EBALDC
EPAH
FC
No Data
JHEF
KC CASH
RDI
55%
St. Mary’s
45%
Male
Female
Real$ense
Tax-Aid
UWCAL
0
450
900
1350
1800
2250
Number of Returns Filed
— Page 4 —
White
0%
0%
Asian/Pacific
Black
25%
25%
Latino/Hispanic
Islander
50%
50%
75%
75%
Native American
Other
CITY
I
ETHN
100%
100%
AAM
AP
AAS
CWF
CEP
CECAA
EBALDC
No Data for Other Ethnicities
EPAH
FC
No Data
JHEC
KC CASH
RDI
St. Mary’s
Real$ense
Tax-Aid
UWCAL
0%
0
25%
25
50%
50
75%
75
100%
100
— Page 5 —
On average, 34% lived in households where another language besides English is spoken.
The demographic and linguistic characteristics of filers served at these sites varied by organization and mirrored
certain regional or local demographics. For instance, in San Antonio, Austin and El Paso, Texas, local partners served
large populations of Latino/Hispanic taxpayers and catered to many Spanish-speaking clients by translating their
tools and materials and providing bilingual tax preparation volunteers. This prevalence of self-employed filers for
whom English is likely a second language highlights the need for enhanced IRS educational outreach in immigrant
communities, more bilingual tax assistance and better access to business development materials in multiple
languages.
CA
L
UW
-A
id
Ta
x
’s
Re
al$
en
se
ar
y
M
RD
I
F
KC
JH
E
FC
EP
AH
CE
CA
A
EB
AL
DC
CE
P
F
CW
AA
S
AP
AA
M
0%
0
St
.
50%
0.5
CA
SH
No Data
100%
1
0%
25 - 45
25%
Over 65
Under 25
AGE
This age breakdown is consistent with the filers served during the first year
of the Schedule C VITA Pilot and during the SETI Demonstration from tax
season 2006 through 2010.
46 - 65
50%
75%
100%
FILING STATUS
Filing status gives some insight into taxpayers’ family structures.
It is important to note the high rate of single filers because by and large, single filers are not eligible
for the EITC because they do not have dependents, even though they may be low-income. This is one
reason why EITC claim rates are not higher (see Table 11 in the Appendix).
Single
0%
— Page 6 —
25%
Head of
Household
Married
50%
75%
Married Filing
Separately
100%
TAXPAYER
CHALLENGES
What Key Challenges Did
Self-Employed Taxpayers Face?
aFormalization | Many new entrepreneurs do not even realize when they cross a business-defining legal threshold until they are informed of their tax liability.
aSelf-Employment Tax Burden | Many self-employed filers learn for the first time that they must
pay payroll taxes as both an employee and employer when they first file an annual tax return documenting their
business income.
aMisclassification | Our local partners encounter many taxpayers reporting self-employment income
who are actually misclassified employees. In these situations, local pilot sites educate the taxpayers about the
implications of filing as self-employed and their opportunities for rectifying their misclassification. Though these
filers are not intentional entrepreneurs, they may benefit from the same suite of services offered to self-employed
filers at the sites participating in the pilot. In some instances, this misclassification could have skewed the tax
penalty data.
aTax Penalties | Because self-employment taxes are due quarterly over the course of the year in which they
are incurred, filers who were unaware of their tax responsibility and receive assistance at pilot programs often owe a
penalty in addition to the taxes due for the previous year.
On average, 19% of self-employed filers owed some kind of tax penalty this year.
% of clients owing tax penalty
This represents an overall 7% increase from tax year 2010 and demonstrates the need for additional business
development services, recordkeeping training and other counseling at pilot sites. The following illustrates the
change in tax penalties at pilot sites participating for a second year in (where data was available for both TY 2010
and 2011). Note: An acceptable proxy for whether or not clients owed tax penalties was whether clients owed
more than $1,000, given the likelihood that clients owing more than $1,000 at filing have not met their quarterly
obligations throughout the year, which typically garners a penalty.
0.625
50%
0.5
37.5%
0.375
25%
0.25
12.5%
0.125
0%
0
AAS
CWF
CEP
EBALDC
FC
KC CASH
St. Mary’s
TY 2010
— Page 7 —
Real$ense
TY 2011
TAXPAYER
OPPORTUNITIES
What Key Opportunities Did
Pilot Sites Offer the Self-Employed?
a Free Tax Help | Free tax assistance helps low- and moderate-income self-employed taxpayers comply
with their tax liabilities without having to pay exorbitant fees to a commercial tax preparer. Many times, selfemployed clients visit VITA programs after having been to paid preparers in the past; they find improved quality
assistance and additional opportunities to learn about how to improve their businesses for the future.
The VITA Difference
At the Center for Economic Progress (CEP) this year, a Mandarin-speaking client came to have
his Schedule C return prepared for a small bodega that he operated in Chicago’s Chinatown. Working
through an interpreter, the volunteer preparer learned that the client wanted the return prepared
similar to the year before, when he had a paid preparer “who understood the way things were done in
Chinatown.” The volunteer preparer reviewed the prior year return and discovered many problems:
depreciation on the space that the client was renting, employees treated as independent contractors,
and fully expensed inventory. Because the client had employees and inventory during the year, the
VITA site did not prepare the return, but did educate him about the problems with his prior year. This
is just one example of how the assisted tax preparation process at VITA sites helps self-employed filers
better understand their business finances and learn about their compliance responsibilities.
a Access to Tax Credits | Qualified filers at Schedule C VITA Pilot sites were guaranteed access to
federal tax credits like the EITC and Child Tax Credit (CTC), plus some educational credits like the American
Opportunity Tax Credit or the Lifetime Learning Credit, offering injections of income that may be used to reinvest
in their microbusinesses or support their households. The percentage of taxpayers receiving EITC and CTC
dropped from tax year 2010, from 56% and 31% respectively.
EITC
49%
received the Earned
Income Tax Credit
and collected an average EITC of
$1,618.47
— Page 8 —
CTC
20%
received the
Child Tax Credit
and collected an average CTC of
$1,158.59
a Better Understanding of Business Finances |
The tax filing moment is a natural learning
opportunity for many microbusiness owners who might struggle to master their business finances as easily as
they mastered their craft. At tax time, business owners must think through and document each component of their
operations as they compute the year’s income and expenses on a Schedule C or C EZ form.
For Many Small Business Owners,VITA Offers Peace of Mind
“Starting my own business has been a difficult but rewarding journey,” said
Jennifer, a self-employed taxpayer at AccountAbility Minnesota (AAM) in
Minneapolis. “For the first two and a half years I struggled but things have really
been picking up over the last few months. I feel confirmed in my decision to go
out on my own and AAM has been a part of making that happen.”
After being laid off from her full-time corporate job three years ago, Jennifer, a writer and communications
consultant, decided she wanted to be her own boss and start her own business. When Jennifer was in the
initial stages of starting her business she attended a small business class at a local nonprofit where Tom Larson,
AccountAbility Minnesota’s self-employment program manager, was an instructor. During the class Tom
shared information about AccountAbility Minnesota’ s work with small business owners – helping them to
understand their complicated tax obligations and instructing them on how to set up an effective and efficient
way to track their business activity.
It did not take long for Jennifer to get in contact with Tom to sit down with him to discuss her freelance writing
and communications consulting business. Tom walked her through her tax requirements as a soleproprietor. He also gave her tools and resources to track her income and expenses. Additionally, he
helped her identify those business expenses that qualify as deductions. As a result, Jennifer felt more
empowered as a small business owner – understanding what it takes from a tax and financial perspective to be
a successful business owner.
“It’s a huge service for a struggling small business owner like myself where you are just trying to cobble
together an income where it’s usually week to week and month to month,” said Jennifer. “Just knowing that
a service like this is available takes off a huge amount of pressure, and it always feels very professionally
done.” Before finding AccountAbility Minnesota, Jennifer was going to a commercial preparer to have her
taxes done, spending an exorbitant amount and never feeling educated on the process or what was being done.
When asked how she was spending her refund, Jennifer immediately said “saving it!” She is not unlike many
of AccountAbility Minnesota’s customers who strive to build a nest egg for themselves – a cushion against
emergencies.
— Page 9 —
a Additional Wrap Around Services | Most of the local partner organizations offer additional
financial education or asset-building services to their clients at tax time (see Table 13 in the Appendix). The pilot
partners were also committed to helping first-time Schedule C filers calculate and submit their estimated taxes for
the upcoming tax year.
The basic premise behind the Self-Employment Tax Initiative is that self-employed taxpayers can improve their
household financial security and eventually build wealth through the combined effects of receiving free assistance,
filing accurate tax returns, accessing state and federal tax credits, learning about the intricacies of their businesses’
finances and being introduced to additional asset-building and business development business services. The
following is one indicator that at least one outcome - income - did improve for self-employed taxpayers served by
the pilot sites.
43% of all self-employed filers were returning for a second year
52%
0%
of return filers increased their
incomes from previous year
25%
50%
75%
100%
A Baker’s Business Grows
One of the East Bay Asian Local Development Corporation’s
(EBALDC) clients exemplifies the power of making a robust
set of services available to low-income entrepreneurs. This
client, who we will call Mary, is a baker who went through
a small business development workshop with a local
organization that helps women launch their own businesses.
Upon graduation from the course, Mary turned her love of
making fabulous cakes into a small enterprise using funds
from an Individual Development Account.
For the last two years, Mary has had her taxes prepared at EBALDC. In 2010, Mary filed a form Schedule
C-EZ with a net profit of $45 and received a federal tax refund of $1,211. In 2011, Mary filed a form Schedule
C with a net profit of $1,554 and received a tax refund of $873. Both years Mary deposited her refund
directly into her Individual Development Account. She has finally saved enough to open a store front for her
business.
Mary exemplifies how entrepreneurs can leverage a variety of services from various organizations to build
their own financial stability. The Schedule C Pilot has allowed EBALDC to work with Mary from the infancy
of her business through its adolescence.
— Page 10 —
Taking Advantage of Wrap Around Services
Veronica is a Foundation Communities resident who has her taxes prepared at the Community Tax Centers
in Austin, TX. She also attends money management and homebuyer classes, receives financial coaching, and
opened an IDA to purchase her first home. She is a Spanish-speaking legal permanent resident, which is relevant
only in demonstrating her determination and how goal-driven she is. After fleeing a domestic violence situation,
Veronica began supporting her family by styling hair. She began by renting a chair at another stylist’s salon,
but soon decided to branch out on her own. Veronica changed the purpose of her homeownership Individual
Development Account (IDA) to start her own business.
She located and leased a building for her own salon; the building owner told her she would have to get
insurance and utility services and make any required repairs, and that she was on her own to figure out how
to do all that. Through pure grit, determination, no fear of asking questions and attending classes, Veronica did
indeed figure it all out. She got free legal help to review her lease, purchased business insurance, painted inside
and out of the building, had electric wiring installed, installed new flooring herself, purchased two new barber
chairs, wait chairs, signs for her business, supplies and materials. She did all this with an IDA containing $4,000
- today, that IDA still has a balance of $300.
Foundation Communities helped with getting accurate tax returns prepared and filed; coaching to assist with
budgets, both personal and business; and setting up a record-keeping system. But it is Veronica’s tenacity that
makes her so successful. In the middle of starting up this new business, Veronica noticed a lump in her cheek
which turned out to be malignant. While chemo has slowed her down a bit, there is no stopping her - she
recently hired a couple of employees to help her with customers on days she is unable to stand for long periods.
Her goal is continued growth of her business and getting her daughters through college.
Conclusion
The second year of the Schedule C VITA pilot confirmed the need and
capacity for expanded scope of Schedule C preparation, which would
allow VITA to reach a broader audience of low-income Schedule C filers.
There is plenty of demand for this service: of the 20 million American tax
payers who file a Schedule C each year, 60% have adjusted gross incomes
below $50,000. The invaluable “wrap-around services” that many sites
in the Schedule C VITA Pilot offer help clients learn about compliance,
better prepare for tax filing season and ultimately improve their families’
household financial security. For a second year, the sixteen participating organizations demonstrated that they were
able to effectively deliver high-quality Schedule C assistance, track and report lessons learned and design tools for
volunteer training on top of offering additional business development services to low-income entrepreneurs.
About CFED
CFED empowers low- and moderate-income households to build and preserve assets by advancing policies and
programs that help them achieve the American Dream, including buying a home, pursuing higher education,
starting a business and saving for the future. As a leading source for data about household financial security and
policy solutions, CFED understands what families need to succeed. We promote programs on the ground and invest
in social enterprises that create pathways to financial security and opportunity for millions of people.
— Page 11 —
Established in 1979 as the Corporation for Enterprise Development, CFED works nationally and internationally
through its offices in Washington, DC; Durham, North Carolina; and San Francisco, California.
For more information about SETI, our partners and our programs, contact us at [email protected].
CFED recognizes the commitment of our funders to small and growing businesses and is grateful for their support
of SETI. CFED gratefully acknowledges the support of our funders, including the Hearst Foundation, the Sam’s Club
Giving Program, the New York Stock Exchange and the Annie E. Casey Foundation.
— Page 12 —
APENDIX
Note: Just Harvest Education Fund did participate in the Schedule C VITA Pilot but is not listed on any of the
following tables because data was not provided for their filers this year.
Table 2. Percentage of Volunteer and Paid Staff Schedule C Tax Preparers
Volunteers
Paid Staff
98%
2%
Atlanta Prosperity Campaign
0%
100%
8%
92%
19%
81%
Center for Economic Progress
100%
0%
Colorado East Community Action Agency
25%
75%
East Bay Asian Local Development Corp.
67%
33%
El Paso Affordable Housing
100%
0%
100%
0%
KC CASH Coalition
0%
100%
Rural Dynamics Inc.
98%
2%
St. Mary's University
75%
25%
Real$ense Prosperity Campaign
74%
26%
Tax-Aid
99%
1%
20%
80%
Average
59%
41%
Table 3. How Do You Accommodate Self-Employed Filers During Tax Season?
How do you accommodate self-employed filers during tax season?
Organization
Appointment
Walk-In
X
X
X
X
X
X
X
X
X
X
X
X
X
No Data
No Data
KC CASH Coalition
X
X
Rural Dynamics Inc.
X
X
X
X
Tax-Aid
X
X
Just Harvest Education Fund
— Page 13 —
X
Designated Day
X
No Data
X
Table 4.Tax Year 2012 Self-Employed (Schedule C and C-EZ) Returns Filed
Tax Year 2011 Self-Employed Returns Filed
Schedule C
Schedule C-EZ
Total
327
392
719
46
366
412
844
934
1,778
123
579
702
515
1,085
1,600
19
6
25
136
15
151
76
331
407
No Data
No Data
1,791
KC CASH Coalition
149
208
357
Rural Dynamics Inc.
152
127
279
108
34
142
Tax-Aid
267
48
96
254
0
35
521
48
131
2,906
4,366
9,063
Total
Table 5. Schedule C Taxpayer Ethnicity & Language
17%
8%
25%
21%
36%
21%
69%
1%
13%
60%
24%
96%
3%
19%
24%
18%
0%
0%
54%
5%
1%
3%
5%
6%
15%
2%
4%
24%
40%
7%
24%
0%
5%
40%
0%
0%
4%
0%
0%
8%
Latino / Hispanic
Language Besides
English Spoken at
Home
Asian / Pacific Islander
39%
Other
Black
Native American
White
Ethnicity
14%
9%
13%
61%
8%
0%
10%
74%
N/A
N/A
N/A
73%
N/A
N/A
95%
22%
8%
2%
60%
0%
6%
43%
KC CASH Coalition
39%
31%
4%
24%
1%
1%
24%
Rural Dynamics Inc.
64%
1%
1%
1%
32%
1%
13%
18%
6%
1%
73%
0%
2%
54%
Tax-Aid
15%
5%
9%
60%
0%
11%
35%
41%
41%
3%
12%
1%
2%
14%
53%
42%
3%
1%
0%
1%
5%
Average
34%
25%
10%
26%
3%
5%
34%
— Page 14 —
Table 6. Schedule C Taxpayer Filing Status
Schedule C Taxpayer Filing Status
Single
Married
Married Filing
Separately
Head of
Household
Qualifying
Widower
56%
18%
2%
24%
0%
25%
30%
0%
45%
0%
59%
16%
4%
21%
0%
50%
16%
4%
30%
0%
55%
21%
3%
21%
0%
32%
40%
0%
28%
0%
47%
36%
0%
17%
0%
51%
29%
0%
20%
0%
40%
36%
2%
22%
0%
KC CASH Coalition
45%
35%
2%
18%
0%
Rural Dynamics Inc.
50%
31%
0%
19%
0%
38%
45%
1%
15%
1%
40%
31%
4%
25%
0%
Tax-Aid
50%
30%
0%
20%
0%
60%
18%
1%
21%
0%
Average
46%
29%
2%
23%
0%
Table 7. Schedule C Taxpayer Ages
Schedule C Taxpayer Age
Under 25 Years
25-45 Years
46-65 Years
Over 65 Years
10%
49%
38%
3%
8%
48%
38%
6%
8%
32%
49%
11%
10%
43%
41%
6%
10%
40%
43%
8%
8%
48%
32%
12%
9%
49%
36%
6%
13%
28%
57%
2%
8%
54%
33%
5%
KC CASH Coalition
9%
43%
38%
10%
Rural Dynamics Inc.
9%
28%
47%
16%
0%
48%
45%
7%
11%
35%
46%
8%
Tax-Aid
5%
54%
40%
1%
11%
36%
44%
9%
Average
9%
42%
42%
7%
— Page 15 —
Table 8. Percentage of Schedule C Taxpayers by Gender
Male
Female
41%
59%
65%
35%
35%
65%
29%
71%
37%
63%
36%
66%
41%
59%
No Data
No Data
54%
46%
KC CASH Coalition
44%
56%
Rural Dynamics Inc.
47%
53%
51%
49%
Tax-Aid
45%
45%
45%
55%
55%
55%
Average
45%
55%
Table 9. Schedule C Taxpayer Adjusted Gross Income
Schedule C Taxpayer Adjusted Gross Income
< $5,000
$5,000$15,000
$15,001$30,000
$30,001$40,000
$40,001$50,000
> $50,001
30%
31%
26%
8%
3%
2%
6%
22%
29%
24%
17%
2%
33%
40%
20%
4%
2%
1%
23%
37%
25%
8%
3%
4%
24%
43%
23%
6%
2%
2%
12%
12%
44%
16%
12%
4%
26%
31%
25%
12%
3%
3%
No Data
No Data
No Data
No Data
No Data
No Data
17%
37%
29%
9%
5%
3%
KC CASH Coalition
15%
35%
24%
12%
6%
8%
Rural Dynamics Inc.
20%
35%
23%
9%
5%
8%
16%
41%
25%
9%
4%
5%
20%
31%
22%
10%
7%
10%
Tax-Aid
9%
29%
49%
10%
2%
1%
23%
41%
25%
8%
3%
0%
Average
20%
33%
28%
10%
5%
4%
— Page 16 —
Table 10. Percentage of Self-Employed Filers that Owed a Tax Penalty for Tax Year 2011
Organization
How many self-employed filers owed a tax penalty?
No Data
41%
7%
28%
40%
0%
48%
No Data
12%
KC CASH Coalition
10%
Rural Dynamics Inc.
No Data
9%
10%
Tax-Aid
52%
0%
Average
19%
Table 11. Percentage of Self-Employed Filers that Received Refundable Tax Credits and Average Amount of
Earned Income Tax Credit and Child Tax Credit
Refundable Tax Credits
% EITC
Average EITC
% CTC
Average CTC
56%
$1,350.00
26%
$1,273.00
30%
$1,632.00
17%
$1,225.00
61%
$1,280.00
10%
$1,011.00
54%
$1,523.00
9%
$896.00
58%
$1,433.00
25%
$1,220.00
40%
$2,095.00
36%
$1,304.00
58%
$1,308.00
8%
$881.00
No Data
$2,005.00
No Data
No Data
45%
$1,735.00
41%
$1,433.00
KC CASH Coalition
42%
$1,815.69
10%
$950.73
Rural Dynamics Inc.
50%
$1,478.56
24%
$2,143.72
47%
$1,914.52
35%
$1,224.00
50%
$1,620.00
10%
$711.00
Tax-Aid
25%
$1,006.00
15%
$137.00
48%
$1,468.87
3%
$789.25
Average
49%
$1,618.47
20%
$1,158.59
— Page 17 —
Table 12. Percentage of Self-Employed Filers Returning from Tax Year 2010 and Percentage of Return Filers
with Increased AGI
Return Clients
Increased AGI
57%
59%
40%
65%
25%
69%
42%
No Data
55%
29%
36%
66%
54%
51%
40%
No Data
56%
50%
KC CASH Coalition
38%
61%
Rural Dynamics Inc.
38%
No Data
30%
52%
42%
65%
Tax-Aid
30%
20%
44%
41%
Average
42%
52%
Table 13.Types of Asset Building Services and Products Offered
Organization
Business Development
Services and Products
Asset Building Services and Products
Recordkeeping tools and
workshops
Savings accounts, low-cost pre-paid debit cards, credit reports, pro bono
financial planning*
Business training courses, small
business loans*
Credit reports, savings and checking accounts, retirement counseling,
financial counseling, public benefit screenings, FASFA preparation
Day-care planning guide
Credit reports, prepaid debit cards
Business development counseling
Public benefits screening, savings bonds, low-cost prepaid debit cards,
credit reports, FASFA preparation
Tax and recordkeeping workshops
Savings bonds, prepaid debit cards, bank accounts, FAFSA preparation,
financial coaching
Tax and recordkeeping counseling
Financial education courses*
Recordkeeping tools
Savings bonds, savings accounts, prepaid debit cards, credit reports
Recordkeeping counseling
Financial literacy materials
Small business loans, business
development counseling and
workshops*
Financial counseling and education, credit counseling, FAFSA preparation,
Individual Development Accounts
KC CASH Coalition
Recordkeeping tools
Savings and checking accounts, credit counseling, financial education
Rural Dynamics Inc.
Recordkeeping tools
Credit counseling, financial education, Individual Development Accounts,
prepaid debit cards
None
None
Business development courses*
Savings and checking accounts, Individual Development Accounts*
Business development
workshops*
Public benefits screening*
Recordkeeping workshops
Savings and checking accounts, credit counseling, Individual Development
Accounts, prepaid debit cards
Tax-Aid
*Services and products marked with an asterisk are offered through partner organizations, not at the sites themselves.
— Page 18 —

Expanding the VITA Scope for the Self-Employed

Transcription

Similar documents

May 2014 - la-bellavita.com

46789 VitaCraft Neova Flyer.indd

Expanding the VITA Scope

1. The Story of the Lost Child 2. Esco a fare due passi

Auto Claims Management

money matters - Racine Municipal Employees Credit Union

Read the full Calgary Herald article

4Lamisil: “Digger.” An animated dermatophyte drove Novartis

Plan Preliminar de Mercadeo

Make tax season less taxing - Singing River FCU | Moss Point

SmartOpenData Leaflet