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Tax Benefits for Veterans with a Disability

Tax Benefits for Veterans with a Disability . IRS SPEC Mission. Stakeholder Partnerships Education & Communication.

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Tax Benefits for Veterans with a Disability

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  1. Tax Benefits for Veterans with a Disability

  2. IRS SPEC Mission Stakeholder Partnerships Education & Communication To assist taxpayers in satisfying their tax responsibilities by building and maintaining partnerships with key stakeholders, seeking to create and share value by informing, educating, and communicating with our shared customers.

  3. Economic Stimulus A one-time payment authorized by Congress to give the 2008 economy a “shot in the arm.” Eligible individuals receive up to $600 ($1,200 for married couples filing joint returns) plus $300 for eligible children younger than 17. Special stimulus category recipients of non taxable benefits from Veterans Affairs not normally required to file a tax return. Economic Stimulus Payments (ESP) 3

  4. Economic Stimulus cont. Most people only need to file a federal tax return as they normally do. IRS will calculate eligibility and payment amount. The stimulus payment has no impact on other federal benefits. The stimulus payment is not taxable. Absent any other filing requirements, filing a tax return to receive a stimulus payment does not mean that veterans will have to start filing tax returns again. Heart Act (Heroes Earnings Assistance and Relief Tax Act) corrected the ESP/ITIN issue 4

  5. Economic Stimulus cont. Most people only need to file a federal tax return as they normally do. IRS will calculate eligibility and payment amount. The stimulus payment has no impact on other federal benefits. The stimulus payment is not taxable. Absent any other filing requirements, filing a tax return to receive a stimulus payment does not mean that veterans with no filing requirement will have to start filing tax returns again. 5

  6. Economic Stimulus—How can you help us? 250,000 veterans have not claimed their ESP Homeless veterans make up a large portion of this population Trusted local organizations are needed to reach this population Engage our local SPEC offices in your Stand-Downs and other events 6

  7. Economic Stimulus— Veteran Metrics ESP veteran flyer Unclaimed veteran ESP population by state 7

  8. Community Based Partnerships AssetBuilding Outreach and Education Awareness and Education Client Based Organizations Tax Preparation

  9. What is the Earned Income Tax Credit (EITC)? • Federal Tax Benefit to Help Low and Moderate Income Workers Increase Their Financial Stability. • Reduces Taxes for Workers • Supplements Wages • Fully Refundable Credit

  10. Need for EITC Education and Outreach • Limited Education, Language and Financial Abilities • Concentrated IRS Efforts in the Past Have Failed to Reach All Eligible Families • Affirmative Action Required to Access EITC and Other Tax Credits

  11. Why Is There a Need For Free Tax Preparation Services? • Inability of Working Families To Prepare Their Own Return • 71%of EITC Income Eligible Taxpayers Used a Paid Preparer • Lack of Existing Free Tax Prep Sites • 30% of all EITC filers received a refund anticipation loan

  12. EITC Outreach • 23.3 Million EITC Returns • 43 Billion of EITC 15% fail to claim

  13. Veterans Outreach Veteran Target Populations for 2009: • Homeless • Returning vets reentering civilian workforce • Involved in Compensated Work Therapy (CWT) or Incentive Therapy (IT) programs • VA Disability determinations • Resolution of Existing Tax Liabilities • Local Taxpayer Advocate • Low Income Tax Clinic 13

  14. Disability InitiativeReal Economic Impact Tour The Disability Initiative is co-branded with National Partners as REI Tour National Disability Institute – Lead Partner

  15. What is REI Tour? Building a Better Financial Future for Americans with Disabilities Purpose: Provide tax and financial service information and other asset building strategies for persons with disabilities, their families and employers. Strategy: Join existing free tax coalitions and provide resources, education and technical assistance to expand existing infrastructure to better serve customers with disabilities.

  16. REI Tour National Outcomes Cities & Year 11 cities 2005 33 cities 2006 54 cities 2007 62 cities 2008 Engaged 555 local partners in 2008 a 78% increase from 2007 Outcomes 7,600 returns $6.8 m 17,223 returns$15.3 m 36,275 returns $32.6 m 90,653 returns $81.5 m Exceeded 2 million asset building education and outreach contacts in 2008

  17. Local Partners Mayors’ Offices United Way IRS FDIC Taxpayers Assistance Services IDA Providers EITC Coalitions Financial Institutions Community Action Agencies Goodwill International One Stop Employment Offices State Developmental Disabilities Councils Easter Seals Work Incentive Planning and Assistance Workers Centers for Independent Living Disability Program Navigators Associations for the Blind and Deaf

  18. For More Information….. Ron Smith 404-338-8512 Ron.Smith@irs.gov

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