Gifts to United Way of Rhode Island power the Volunteer Income Tax Assistance (VITA) program. This is a nationwide initiative supported by the Internal Revenue Service (IRS), which trains and certifies volunteers to provide free tax preparation services to low and medium-income individuals. Many seniors, persons with disabilities, and those with limited English proficiency use this program. VITA services are often hosted by community organizations in accessible and comfortable locations. United Way of Rhode Island partners with VITA to manage and deliver these services in 23 sites across Rhode Island.
Tax preparation can cost between $100 – $300 for the typical VITA user, which can be used instead to pay for other essential needs like rent, groceries, or healthcare.
United Way of Rhode Island’s investment of $300,000 in the VITA initiative returns $76 for each dollar invested.
In addition to tax preparation, United Way partner Progreso Latino is certified to assist individuals in applying for an ITIN, or individual tax identification number, a requirement to obtain a drivers’ privilege card or identification privilege card.
The site at the Center for Southeast Asians helped a taxpayer who was about to get evicted from his apartment as his rent was past due. He had not filed taxes in seven years and had no supporting paperwork. VITA created an IRS online account and helped him request his transcripts from the State Division of Taxation. Even though two years of tax returns were withheld because he filed late, he was able to deposit about $10,000 in his bank account from his refund and stimulus and was able to stay in his apartment.
VITA volunteers can identify and help claim important tax credits such as the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC), which can add thousands to a family’s refund. VITA’s guidance ensures they receive the maximum and most accurate refund possible, while minimizing audits. A volunteer at Jonnycake Center for Hope (JCH) identified an error in a client’s prior year return, and filed an amendment with a substantial refund for the taxpayer.