By Mike Bridges
It's tax season and with it comes a certain amount of stress. The Michigan Credit Union League http://www.mcul.org/ and Michigan credit unions are easing some of that burden by making sure members get all the credits they are eligible for on the federal and state levels.
Just file it! We'll Help. Free Tax Preparation for Those Who Need it Most is a Web-based program that allows families and individuals to file for state and federal tax credits that often go overlooked. This includes the Federal Earned Income Tax Credit, which can be as high as $4,500 for low-income, working households.
In just over three weeks, almost a thousand Michigan taxpayers using the Just file it! software have qualified for more than $1.5 million in EITC and other refunds and credits—that already tops the $1.4 million credit unions returned all of last tax season.
To use the program, members need a computer, Internet access, a Web browser and a printer. The program uses free, Web-based software, posing questions to users and offering assistance via video tutorials. It is offered in English and Spanish. The MCUL underwrote the cost of tailoring the software to handle Michigan's state tax forms in conjunction with the Legal Aid Society of Orange County, Calif., and the University of Michigan's National Poverty Center.
Over 140 Michigan credit unions offer Just file it! For many, the program is a way to get creative. Here are a few examples:
- Some credit unions have a Volunteer Income Tax Assistance Program in their lobby or community room. The VITA program uses trained community members to help answer tax questions and complete income tax filing. $102 million Monroe County Community Credit Union in Monroe started a Building Financial Assets Coalition made up of 10 community human service agencies that provide Just file it!
- $1 billion Dow Chemical Employees Credit Union in Midland utilizes the United Way's computer lab during tax season. The CU's Web site, featuring the Just file it! icon, is the home page for each computer in the lab.
- Three days a week, the East Lansing branch of $250 million Option 1 Credit Union has a VITA site in its lobby. The CU also partners with Ingham County's Asset Independence Coalition for a Super Saturday event where the community is invited to have their taxes done under the assistance of trained volunteers. These events usually offer refreshments and childcare.
In just over three weeks, credit unions have helped Michigan residents file 750 more tax returns than any other state in the program, including California. To date, 46 states are participating, though only five offer filing of state returns.
Legislative advocacy, MCUL's Community Reinvestment Initiative and cooperative brand advertising together make up our three-tiered vision for protecting credit union interests in Michigan. The Just file it! idea was developed through CRI and its outreach.
As with programs of this magnitude, there is also a domino effect. With $1.5 million dollars being returned to Michigan residents in three weeks, local economies are getting a major boost. Most of that money will stay within those respective communities. This is just another example of the credit union philosophy of "people helping people."
Mike Bridges is director of public affairs for the Michigan Credit Union League, Lansing, Mich.
Also read "Tax Prep Partnerships an Entree to Unbanked Consumers" in our Skybox archives and "Talking Taxes" and "Tax Time = New Members" in our Credit Union Management magazine archives.
For a case study about the VITA programs at $50 million Alternatives Federal Credit Union, Ithaca, N.Y., and $350 million The Summit Federal Credit Union, Rochester, N.Y., advance to p. 31 of Reaching the Unbanked: CUs Partner to Improve Members’ Financial Futures.
