From January 15 through April 15 2008, 900 volunteers working with 25 coalitions provided free tax preparation services at over 100 sites throughout Virginia. Over 17,500 federal returns were filed with refunds in excess of $15 million. In addition to the federal returns, over 15,300 state returns were filed resulting in $1.8 million in Virginia refunds. Six million dollars in Earned Income Tax Credits (EITC) was refunded to more than 4600 taxpayers. This year the new Economic Stimulus Payment presented a challenge to all coalitions providing the valuable free tax preparation services. The Virginia Employment Commission estimates the value of volunteer time to be more than $19 per hour, translating to about $780,000 in value to the program and to the communities where these valuable volunteers live and work.

Compared to the 2006 tax year, this represents:
• 56% increase in the number of returns prepared
• 40% increase in the amount of federal refunds
• More than 58% increase in the number of EITC returns
• $3.5 million saved in tax preparation fees

The Virginia Community Action Partnership (VACAP) EITC Initiative supports community groups and coalitions throughout Virginia that provide free tax preparation services and promote financial literacy, savings and asset building to low income working individuals and families. The Virginia CASH Campaign (Creating Assets, Savings and Hope) gives the program an identity that can be used by the coalitions to engage community partners in their work. State wide partners in Virginia CASH include the Virginia Department of Social Services (VDSS), Department of Housing and Community Development (DHCD) and the Internal Revenue Service (IRS). Collectively the mission is to raise awareness of the EITC, especially among eligible recipients and to provide free tax preparation services by certified volunteers. We encourage financial literacy and education, savings and asset building programs to enable clients to work toward self-sufficiency.

VACAP believes that the significant increase in activity is due largely to the success of the EITC grant program.