Volunteer Income Tax Assistant (VITA)

what is vita?

A network that helps the community

The Volunteer Income Tax Assistance (VITA) program is a network that helps the community meet their civic obligations as taxpayers, and supports them on the path to financial security and opportunity. In 2014 alone, VITA returned more than $2.2 billion to tax filers. VITA is a crucial asset for people making approximately $54,000 or less, individuals with disabilities, and those who speak limited English.

Created in 1969 to provide free tax preparation for low- to moderate - income individuals and families, VITA has successfully allowed program recipients to maximize their tax credits, avoid unnecessary fees, and increase their financial stability.

Below is a summary of the following brief, highlighting key points and recommendations for states and advocates.

VITA helps states by bringing in more tax revenue and:	VITA faces the following challenges:	States can support the program by:	Advocates should:
Increasing tax compliance across the state; Promoting accuracy, which eans fewer disputes to resolve; Saving money for low-income families; and Strengthening the local community and civic engagement	Filing taxes is increasingly complex and year-long; Service providers cannot meet demand without more funding; and Organizational capacity is outstretched	Building organizational capacity; Providing direct funding; Facilitating VITA services and trainings; and Advertising VITA services in materials distributed to other government program beneficiaries	Identify viable funds that offer the most flexibility; Be cognizant of potential backlash while pursuing new funding streams; Explore low-cost alternatives for state support; and Rethink framing to align with state priorities and broaden VITA's tent of supporters

VITA Also Helps The States

What States Can Do To Support VITA

Incrasing Tax Compliance Across the State:

To begin with, VITA provides tax filers an accessible, affordable path towards federal, and often, state tax compliance. This is especially true for earners who cannot afford traditional tax preparation services and may have opted out of filing taxes altogether were it not been for free services.

Promoting Accuracy, Which Means Fewer Disputes to Resolve:

The accuracy rate for tax returns filed at VITA sites is consistently higher than paid tax preparation alternatives. In fact, accuracy has been steadily increasing over the years, from 85% in 2009 to 94% in 2015, despite stagnant funding and increased demand for VITA services.

Saving Money For Low-Income Families:

The program saves low-income tax filers money on tax preparation fees, which means that they have more to spend in their local communities and consequently, more spent on state sales taxes.

Strengthening the Local Community and Civic Engagement:

VITA’s value to volunteers, as well as to beneficiaries, cannot be overstated. Studies about VITA volunteers demonstrate that participation in VITA promotes higher levels of modification, increased multicultural sensitivity, enhanced communication skills, and deeper understanding of accounting and business theory.

Build Organizational Capacity:

States can support VITA by providing more volunteers, easing paperwork and promoting VITA services. For example, many states have State Service Commissions entrusted to manage federal national service grants and the Commissions can ensure that free tax assistance is included when determining social needs and program priorities.

Provide Direct Funding:

Of course, one of the most significant forms of support that states can provide to VITA is direct funding. VITA services should be an allowable use of block grant dollars, specifically through the Community Development Block Grant Program (CDBG), the Community Services Block Grant (CSBG), and the Temporary Assistance for Needy Families (TANF) block grant.

Facilitate VITA Services & Trainings:

States can support VITA through lower-cost measures such as training volunteers to complete tax returns, ensuring that any changes to electronic tax forms are completed as early as possible, and creating a direct line of contact between VITA sites and state tax commissions.

Recommendations for Advocates

Advocates should pursue strategies that ensure the highest amounts of flexible funds while minimizing cuts to other programs that serve low-income people.

Recommendation #1: Identify Viable Funds That Offer The Most Flexibility

VITA sites require flexible funds to provide a range of services, from free tax preparation to referrals for other service providers, financial coaching, and checking eligibility for federal tax credits.

Recommendation #2: Be Cognizant Of Potential Backlash

VITA advocates need to be aware of potential allies and adversaries when pursuing new funding streams or increased support. For example, including VITA or EITC outreach as an allowable use for TANF Maintenance of Effort (MOE) dollars could help expand VITA services to communities in need, but it may also reduce funding for existing TANF-funded programs that benefit the same populations.

Recommendation #3: Explore Low-Cost Alternatives For State Support

Consider advocating for alternative methods to support VITA. For instance, since many VITA clients have state tax filing needs in addition to their federal taxes, states should consider providing trainings for VITA volunteers about how to complete state returns.

Recommendation #4: Rethink Framing To Align With State Priorities And Broaden Tent Of Supporters

In states with dedicated offices to coordinate volunteers, this can be another source for promoting VITA and encouraging more volunteers for sites. In recent years, many states have been shifting dollars to things like emergency preparedness programs, but advocates should consider how to reframe VITA as a service for addressing financial emergencies and promoting financial recovery.

Recommendation #5: Take The Long View

Creating sustainable VITA programs, especially in the absence of congressional appropriation, is a long-term process. Building state support requires allies at all levels of government, from high-level leadership to on-the-ground champions who will continue to support the program even as administrators change.

You can find more information regarding to VITA program in this document.

Please join SPEC’s training on the FY2025 Form 1361-C, Intake/Interview and Quality Review Sheet and Form 13614-C Job Aid for Volunteers. You can find more information on here.