Category: Consumer education and empowerment
Building a brighter future by saving at tax time
This paper provides observations on ways that consumers, especially those with low and moderate incomes, save, and how that saving activity can be better measured. It builds on the knowledge, practice, and results of the 71 Volunteer Income Tax Assistance (VITA) programs from 31 states that participated in the 2018 Bureau Tax Time Savings cohort. Through direct feedback from participating VITA programs, this paper provides information on how programs encourage saving. It also identifies two new practices that several of the programs have implemented to leverage their tax preparation efforts to offer additional financial capability resources to their tax customers. Finally, this report describes some of the new tools that the Bureau has created to help VITA programs more effectively focus on those practices that would be most effective in their communities and how to implement them.