Asset Building
August, 2012
Who takes credit?
The Earned Income Tax Credit in Cuyahoga County, 2012
David Rothstein
Executive Summary
Established in 2005, the Cuyahoga EITC Coalition began is mission to provide free, high-quality
tax-assistance services in the Cleveland area. The Coalition continues to grow, providing
services to more than 10,600 clients in the last tax season. The Coalition includes more than 40
partners and brought more than $12 million in federal and state tax refunds to the county in 2012.
It seeks to help individuals and families claim the Earned Income Tax Credit, a refundable credit
that provided $2,327 to the average Cuyahoga County recipient. The Coalition serves low- and
moderate-income working families earning up to $50,000. This report analyzes the Coalition’s
free tax program and summarizes a survey we conducted of Coalition clients. Findings include:





The Coalition assists people who hadn’t claimed tax credits before and helps them avoid
exploitative fees: roughly one-fifth paid for tax preparation in prior years and eight
percent did not file in the previous year;
The project is making customers happy: more than half of clients were return customers
and 98 percent will return next year;
The effort is relieving poverty for families with children: one in three clients received the
EITC, the nation’s largest poverty relief program;
The Coalition is growing: there were 3,178 EITC claims last year, bringing more than
$4.7 million into the community, and since 2005, the Coalition has more than doubled its
total prepared returns, growing by 400 percent over 8 years.
Clients have a variety of education levels and jobs in the community including the health,
education, and financial sectors.
We surveyed more than 2,000 clients and found that most are female and African American, and
fewer than a quarter own homes. The survey found that clients heard about the service through
the 2-1-1 help line, family, friends, and print ads. The primary reason clients gave for using this
service is that it’s free. More than ever, clients indicated that they want to save part of their
refund. Nationally, successful asset-building initiatives implemented during the flow of tax sites
include purchasing U.S. Savings Bonds, opening savings accounts with incentives, and analyzing
credit scores.
In short, the report found that the Coalition’s efforts are bringing new federal money into the
economy, relieving poverty, reducing the use of exploitative loans and doing a good job with
Who takes credit? Cuyahoga County EITC 2012
technology and high customer satisfaction. It is crucial that we devise ways to help bring the
project to scale so that it is helping a larger portion of the community.
Introduction
The Cuyahoga EITC Coalition is a group of social service agencies, community groups, and
government entities that provides free tax preparation for low- and middle-income families.
During last year’s tax season, the Coalition prepared more than 10,600 tax returns and secured
roughly $13 million in federal dollars for Cuyahoga County residents. Slightly less than onethird of clients (30 percent) received the Earned Income Tax Credit (EITC), a refundable federal
tax credit that primarily assists low- and moderate-income working families with children. The
EITC can now provide more than $5,700 to a family of a three due to increases passed in the
American Recovery and Reinvestment Act.1
Figure 1 shows the structure of the EITC program. The maximum credit is for working families
with three or more children earning between about $12,500 and $22,200. These families are
eligible for $5,657, as the light yellow line (and the dotted black line show). Families with two
children can get a maximum of $5,028 (dark yellow line) and those with one child get a
maximum of $3,043 (light blue line). A modest credit is available to very low-income workers
with no children, as shown by the dark blue line. The black dotted line in each area shows new
higher income eligibility levels for married couples. The higher coverage for a third child is also
a new policy, also passed as part of the Recovery Act.
“How Will Changes to the EITC in the American Recovery and Reinvestment Act Affect Working Families?”
Center for Economic Progress (March 13, 2009): http://www.taxcoalition.org/materials/2009/Economic_Stimulus_EITC%20Summary_03.12.09.pdf
1
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Who takes credit? Cuyahoga County EITC 2012
2
The EITC, available only to low- and moderate-income families who work and pay taxes, is the
nation’s largest program to help low-income families pay for basic needs. It’s structured as a
refundable tax credit: if the credit exceeds the amount owed, the IRS sends a refund check or
direct deposit in the amount of the difference. Under the Recovery Act, the maximum EITC for a
family with three qualifying children and income between $12,620 and $24,000 is $5,751. The
average EITC in Ohio in the first year of the Recovery Act was $2,100.
In Tax Year 2010, the EITC provided more than 941,000 Ohio families with total refunds of $2.1
billion.3 Nationally it lifted an estimated 5 million people (3 million children) above the federal
poverty line, dwarfing other poverty prevention programs. It also helps the near-poor to get a
little further above the poverty line, which can be crucial to greater stability. Research indicates
the EITC strengthens local economies, improves the health and education of children, and
2
3
Chart courtesy of the Center on Budget and Policy Priorities.
Internal Revenue Service, SPEC Database. Accessed - August 2012.
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Who takes credit? Cuyahoga County EITC 2012
promotes work as opposed to traditional public assistance.4 The Coalition provides essential
service delivery to help working families claim this and other credits.
In Cuyahoga County, the EITC provides significant assistance to working families (see Table 1).
More than 122,000 families claim the EITC, bringing some $284 million to the county. EITC
claims increased by more than 3,000 families even though total tax filers decreased for the third
year in a row. The total percentage of filers receiving the EITC in Cuyahoga County reached 21
percent, the highest level on record.
In 2010, the average EITC in Cuyahoga County was $2,327, a slight increase from the previous
year. For low-income families, earning for example $20,000 a year, this credit would add ten
percent to family income. As significant as this credit is for Cuyahoga County, many eligible
families do not get the credit or do not receive all that they might. Families are often unaware of
the EITC, claim it incorrectly, or pay to have their taxes filed, diluting their refund. The IRS and
Government Accountability Office estimate that up to 25 percent of eligible EITC filers do not
claim the credit.5
The Cuyahoga EITC Coalition provides free tax assistance to help families claim all of their
EITC and e-file their return. With an e-filed return, a client with direct deposit will likely receive
a return in seven to 10 days. Some clients that use the Cuyahoga EITC Coalition’s report direct
deposits of their refunds in less than five days.
Free tax assistance from the Coalition and Ohio Benefit Bank6 helped more families claim the
credit and allowed families to avoid paid preparers. Each year, fewer EITC recipients use paid
preparers because of free services and internet-based software. More families claimed the EITC
in Tax Year 2010 than in the previous year but there was an 8 percent drop in the percentage of
EITC returns prepared by paid preparers from Tax Year 2009 to 2010 in Cuyahoga County.
However, 5,000 more EITC filers purchased tax loans or tax checks in 2010. The Coalition and
Ohio Benefit Bank have increased their number of sites and territory covered for free tax
preparation, including inner-ring suburbs around Cleveland.
Indivar Dutta-Gupta. “EITC is Even Better for Children that we Thought.” Tax Credits for Working Families:
http://www.taxcreditsforworkingfamilies.org/2012/07/guest-commentary-eitc-children-thought/#more-6579 (July
19, 2012)
5
John Wancheck, “The Earned Income Tax Credit: A Fact Sheet,” Center on Budget and Policy Priorities: (2009)
http://www.cbpp.org/eitc-partnership/eitcfactsheet.htm.
6
The Ohio Benefit Bank is a public/private partnership administered through the Ohio Association of Second
Harvest Foodbanks through an online application system for claiming public benefits and free tax preparation
assistance. The online service is available at: http://www.ohiobenefits.org.
4
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Who takes credit? Cuyahoga County EITC 2012
Table 1
The Federal EITC in Cuyahoga County, 2010
Total
Returns
EITC
Returns
Percentage
EITC
Returns
Total EITC
Amount
Average
EITC
Amount
582,506
122,084
21%
$284 million
$2,327
EITC
Returns
Filed with
Paid
Preparers
58,404
Percentage of
EITC Returns
Prepared by
Paid Preparers
49%
EITC Filers
Purchasing
Loans or
Refund
Checks
56,974
Source: Tax Year 2010 is the most recent data available for county-level breakdowns. Data was analyzed through the
IRS SPEC Database.
Still, more than half of EITC claimants and low-income working families use paid tax
preparation, which can cost anywhere from $200 to $600 per refund. Additional costs to families
who use paid tax preparation are tax refund anticipation loans (RALs), which are brokered loans
from a third party lender to the filer through the paid tax preparer. These are short-term, highinterest loans that provide quick payment of the anticipated refund to the client. Most RALs or
loan checks speed up the return process by several days, often getting filers a portion of their
refund in a few days, but come at an additional price of $60 to $130. Many filers use the loan to
pay for the cost of tax preparation.7 Very few paid tax chains are selling tax loans because of
regulatory restrictions on financial institutions and the IRS’s decision to end the debt indicator
for paid tax preparers. The debt indicator was a free service that provided paid preparers the
ability to know if a client’s return would be held-up or refunded. Though, paid preparers did sell
more Refund Anticipation Checks (RACs), which allow a client to pay for tax preparation using
their refund and receive a paper check minus that amount in several weeks. RACs are about half
of the cost of a RAL but were designed for clients without bank accounts. To accommodate the
lost revenue from tax loans, many paid preparers have raised the prices on preparation itself –
leading to an increase in RACs to cover those costs.
More than 56,000 EITC filers (45 percent of all EITC filers) in Cuyahoga County purchased tax
loans or checks from paid preparers. Tax loans and checks extract an estimated $1 million from
EITC claimants in Cuyahoga County. Paid tax preparation costs EITC claimants at least $10
million. The lack of transparency and disclosure from paid preparation chains makes cost
estimates challenging. With fewer tax loans being sold, community tax preparers have an
increased role in the market.
Chi Chi Wu and Jean Ann Fox. “Beginning of the End?: Major Changes to Quick Tax Refund Loan Industry,”
National Consumer Law Center (January 19, 2010):
http://www.consumerlaw.org/issues/refund_anticipation/content/2010-RAL-earlyPR.pdf.
7
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Who takes credit? Cuyahoga County EITC 2012
Coalition overview
The Cuyahoga EITC Coalition, in an eight-year time span, has produced impressive results (see
Table 2). Most sites that prepare taxes do so under the federal Volunteer Income Tax Assistance
(VITA) program. IRS-trained and -tested volunteers prepare federal, state, and local taxes.8 In
2012, the Coalition served 5 times as many clients as it did in 2005 and 13 percent more than it
had the year before. In 2012, the Coalition served 10,692 clients, bringing more than $12 million
($4.7 million in EITC) back to Cuyahoga County. Some 30 percent of clients claimed the EITC,
accounting for $4.7 million of those refunds. The average client’s total refund was $1,197 and
the average EITC client return was $1,492. The Coalition grows steadily at about 30 percent a
year. Three years ago, the Coalition identified serving 10,000 clients as their goal and they
achieved it in 2012. Other free tax sites include AARP and the OBB, who often serve EITC
clients working with the Coalition but their numbers are separate from those reported here.
Table 2
2012 Cuyahoga EITC Coalition results
Total
Returns
1 Year
Growth in
Returns
7 Year
Growth in
Returns
10,692
13%
432%
Average
Annual
Growth
Rate
30%
EITC
Returns
% EITC
Returns
Total
EITC
Amount
Total
Refund
Amount
Average
EITC
Return
Average
Return
3,178
30%
$4.7
million
$12.7
million
$1,492
$1,197
The overall share of EITC returns prepared by the Coalition grew significantly over the last eight
years but remains a fraction (three percent) of all Cuyahoga County EITC returns. Nationally,
around two percent of all EITC returns are prepared by free tax coalitions, as small as it is,
Cuyahoga County’s coalition is exceeding penetration in other communities. Some EITC filers
use paid preparation early in January before free tax sites are ready to assist them. Our previous
studies using focus groups and surveys suggest, however that the main reason for not using free
tax preparation is that clients don’t know about these services or perceive paid preparers as
“getting them more money.”9
The Coalition increased its clientele by providing marketing, technical assistance, and e-filing
capabilities to other coalitions around the state. In this sense, free tax preparation is often seen as
a “movement” and the successes of the Cuyahoga Coalition are embedded in other groups across
the state.10 Additionally, coalitions around the state receive marketing and technology support,
8
For more on the IRS VITA program, visit the IRS free services website at:
http://www.irs.gov/individuals/article/0,,id=107626,00.html.
9
See David Rothstein and Piet van Lier “Connecting Free Tax Preparation and Asset Building: Cuyahoga EITC
Coalition Study,” Policy Matters Ohio (January, 2009):
http://www.policymattersohio.org/pdf/FreeTaxPrep2009_0120.pdf.
10
Steve Holt. “Ten Years of the EITC Movement,” Brookings Institution (2011):
http://www.brookings.edu/research/papers/2011/04/18-eitc-holt.
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Who takes credit? Cuyahoga County EITC 2012
often difficult to measure. First Call for Help/211 provides a 24-hour, bilingual referral service to
tax sites. This includes referrals and marketing for the Ohio Benefit Bank and AARP, both of
which also offer free tax preparation and other services. This work is difficult to standardize and
measure but is an important role for the Coalition. As shown in Figure 2, free tax preparation
accounts for roughly two percent of all EITC returns. OBB returns are included in the selfpreparation category, which along with free tax preparation accounts for more EITC returns than
in previous years.
Figure 2: Who Prepares EITC Returns in Ohio?
IRS
Volunteer
0%
2%
Self
46%
Paid Tax
52%
Quantitative survey methodology
The Cuyahoga EITC Coalition commissioned Policy Matters Ohio to evaluate clients and the
overall efforts of the Coalition. Fourteen VITA sites distributed the survey and 2,770 clients
participated. Clients were not required to fill out the survey to receive free tax preparation nor
did they have to answer every question. Nearly one-quarter of clients decided to participate. The
goals of the survey were to understand which marketing efforts resonate with clients, how free
tax services impact their lives, and how clients make financial choices. This year’s survey had a
specific interest in exploring financial behavior of clients to understand the best ways to
incorporate asset building into Coalition efforts. This survey also included more targeted
questions and asked about public assistance programs and barriers to saving. In past year surveys
and focus groups, similar questions were asked but focused more on demographic characteristics
and spending behavior.
New this year, Policy Matters also surveyed clients about their experience at the tax site. This
customer service survey was separate from the general client survey and 1,025 clients
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Who takes credit? Cuyahoga County EITC 2012
participated. This survey will help the Coalition and sites structure operations and infrastructure
to best serve clients.
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Who takes credit? Cuyahoga County EITC 2012
Survey results
Fourteen free tax sites participated in surveying clients (see Figure 3), led by Cleveland Housing
Network (694 respondents), Notre Dame (490) and Eastman Library (235). The Cleveland
Housing Network is a year round site and served more than 1,000 clients in 2012.
Figure 3: Which site did you visit?
Buckeye Area
Development
Corporation
2%
Famicos Park
Tri-C Metro
Village
Campus
3%
3%
Ashbury Senior
Community
Computer
Center
5%
Cleveland
Housing
Network
26%
City of
NHS of
Euclid
Southgate Cleveland
5%
6%
7%
Notre Dame
College
19%
Eastman Library
9%
Lin Omni Center
9%
Weatherhead CWRU
6%
Of the 2,770 survey participants, 36 percent had not used free tax services before this tax season.
This continues to be far less than the 60 percent who were first-time clients in 2009, indicating
more return clients. Some 62 percent of clients used free tax preparation in the Coalition or with
the same site in the previous tax year. This survey marks the largest return clientele in six years
of evaluation. Based on Coalition intake sheets, most sites continue to have repeat customers
who file early in the tax season. Figure 4, below, displays how clients prepared their taxes the
previous year. Fifteen percent of participants paid to have their taxes done, similar to previous
findings. Results indicate that 10 percent of respondents did not file a tax return in the previous
year. Tax compliance, in addition to EITC outreach, is one of the main purposes of the VITA
program. It is clear that free tax sites are helping people file who otherwise would not complete
tax returns. Additionally, VITA sites are able to file returns for up to the past three years,
meaning many clients are getting help for past taxes.
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Who takes credit? Cuyahoga County EITC 2012
Figure 4: Where did you have your taxes done last year?
Have never
Did my own
filed before
5%
2%
Family or friend
8%
Did not file
Here
8%
41%
Paid tax
preparation
chain
15%
Another free
tax site
21%
While clients heard about the Coalition from a variety of marketing efforts, word of mouth from
family and friends continues to be the way most clients hear about free tax preparation. More
than 1,090 clients heard about the Coalition’s services from friends and families. A distant
second and third were hearing about service through social service agencies (296) and
government agencies (202). This is the second year in a row that social service agencies had a
notable increase in how clients heard about the Coalition and free tax services. The largest
increase came from the 182 clients who reported hearing about free tax preparation from print
media like flyers and posters. Clients also continued to learn about free tax preparation through
radio advertisements, newspaper, schools, and social media. Nationwide, radio has become an
effective way to reach working women. Most clients use the direct referral line of 2-1-1, First
Call for Help, which is mentioned in most marketing material. In the current tax season, 2-1-1
also took appointments for most sites and for certain Super Saturday events. The majority of
clients reported at least three ways that they heard about the Coalition and its services, which
demonstrates the Coalition’s ability to get its message out in a variety of ways.
Clients mentioned several reasons for using Coalition tax services over other options (see Figure
5). In a complete reversal from the previous year, clients indicated the number one reason for
choosing a VITA site was that it was free. The number one reason from last year, seeing or
hearing an advertisement, fell to the last reason in 2012. This is likely due to the more than half
of clients who were repeats from previous years and did not need a good deal of advertisement.
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Who takes credit? Cuyahoga County EITC 2012
Figure 5: Why did you choose to get your
taxes done at a free tax site?
1200
1000
800
600
400
200
0
It's free
Came here last Near where I live Friend suggested Saw or heard an
year
it
ad
For the second year in a row, clients were asked what issues were most troubling to their family
(see Figure 6). Clients indicated that utility bills (1,102) were the most challenging economic
issue they faced followed by housing costs (945). Though reversed, these were the top two
answers for last year. These economic needs are strongly correlated with how families spent
some of their tax refunds (see Figure 7).
Figure 6
1200
1000
800
600
400
200
0
Clients indicated that they use their refunds for a variety of goods and services, often purchased
in the local community. Data from the survey, displayed in Figure 7, indicates that refunds were
used for basic living expenses such as utilities, food, clothing, housing, and transportation. Many
who answered “other” wrote that their refunds would be spent on their children, for child
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Who takes credit? Cuyahoga County EITC 2012
support, or on back taxes. Many filers, specifically those who were older and not claiming a
child indicated they would receive no tax refund. The largest increase from the previous year was
the 585 clients who indicated they would save a portion of their refund, despite difficult
economic times. Few clients indicated they would spend their refund on entertainment or
vacations.
Figure 7: What will you use some of your
refund for?
1200
1000
800
600
400
200
0
Most clients reported difficulty earning enough to meet basic needs, making saving difficult (see
Figure 8). More than 1,800 clients said they did not earn enough to save anything. Other clients
said that they had too much debt and too many bills. Contrary to previous reports on low-income
families and asset building, few clients felt that they did not know the best ways to save or that
they lacked access to a financial institution. This indicates that training on money management,
innovative products, and other intervention points through the year are keys for savers. The
Cleveland Saves program, now run by Policy Matters Ohio, can connect clients connecting to the
right products and services for budget, debt, and savings help.
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Who takes credit? Cuyahoga County EITC 2012
Figure 8: What are your biggest challenges in
saving?
2000
1500
1000
500
0
Not enough
income
Too much debt Too many bills I don't have any Unsure of ways Access to a bank
trouble saving
to save
The survey also reveals that most clients are paid through direct deposit into bank accounts,
which means they are eligible for quicker refunds from the IRS when they e-file (see Figure 9). It
also supports earlier survey results that indicate most clients are banked in some fashion. The
largest change was a dramatic decrease in those getting paid in cash. There was a slight increase
in workers getting paid by a debit card.
Figure 9: How do you usually get paid from
Prepaid
work?
debit
card
3%
In cash
1%
I don't work
14%
By check
28%
Direct deposit
54%
The survey also asked about participation in other public assistance and government programs
(see Figure 10). For the fourth year in a row, the numbers receiving public assistance rose
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Who takes credit? Cuyahoga County EITC 2012
compared to previous years. More than 720 clients said they received food stamps or assistance
while more than 400 indicated they received public health assistance. Both of these are nearly
double the levels of the previous year. It is also likely that promotion by 211/First Call for Help
and the Ohio Benefit Bank continues to add to increased public benefit claims with free tax
claims. Unemployment compensation and disability payments do not count as “earned income”
and cannot be used to claim the EITC unless there is another form of income.
Figure 10: Is anyone in your household receiving
the following?
800
700
600
500
400
300
200
100
0
Demographics
The survey asked a series of demographic questions (see Table 4). Overall, there was little
change in the demographic characteristics of clients from 2011 to 2012. The Coalition primarily
serves African American clients (72%) and some Caucasian clients (17%). The Coalition serves
few Hispanic and Asian clients – lack of translators at sites continues to pose challenges.
Females continue to represent a larger share of clients than males. More than 92% of clients have
at least a high school degree. More than 52% of clients have education beyond high school,
which is a 10 point decrease from the previous year. Yet half of clients had some college
experience. This demonstrates that substantial educational effort does not always result in secure
income levels. Clients reported a diverse set of occupations (see Figure 11) though the number
one response was some form of retirement (14%). The second and third most popular responses
were in the medical and health care field (11%) and custodial services (9%).
More than 55 percent of clients are renters but thirty percent own their home. The largest
increase occurred in those “doubling up” or living with family and friends (14 percent) rather
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Who takes credit? Cuyahoga County EITC 2012
than on their own. This presents serious implications for families with children. The average
income for a client was $22,449, though many reported being unemployed or offered incomplete
salary information. The average age was 46, a slight increase from previous years but also
consistent with clients needing to work as they get older. More than 300 clients (13 percent)
reported being either evicted or part of a home foreclosure suggesting continued partnerships
with housing groups. Importantly, 98 percent of clients responded that they would return again
next year.
Table 4
Demographic details from survey of
Cuyahoga EITC Coalition free tax clients
Race
 White/Caucasian
 African American
 Hispanic
 Asian
 Other/Mixed
Gender
 Female
 Male
Education Level
 Less than High School
 High School/GED
 Some College/Technical
School
 Two-Year Degree
 Four-Year Degree
 Some Graduate
Education
 Graduate Degree
Home Ownership
 Rent
 Own
 Own with no mortgage
 Live with friends or family
(doubling-up)
 Dorm/group setting
Client response
2012
Percentage
2012
Client response
2011
Percentage
2011
453
1,915
158
40
52
17%
72%
6%
2%
2%
245
960
85
66
51
17%
68%
6%
5%
4%
1,793
934
66%
34%
913
501
65%
35%
180
885
8%
40%
98
422
7%
30%
559
186
302
25%
8%
14%
525
129
113
37%
9%
8%
32
75
2%
3%
46
3%
1,297
536
332
55%
23%
7%
767
313
75
62%
25%
6%
332
20
14%
1%
66
16
5%
1%
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Construction/contractor
Student
3%
3%
Figure 11: What is your occupation?
Financial services
1%
Transportation
4%
Restaurant
4%
Social services
5%
Retired
14%
Medical/Health
care/nursing
11%
Factory/Manufacturing
6%
Sales and marketing
6%
Education/Child care
6%
Temporary Worker
1%
Custodial/Cleaning
9%
Retail
7%
Laborer/Painter/Mover
7%
Unemployed
8%
Administrative
8%
Customer Service
The Coalition wanted to understand more about what accounts for the high return rate of clients
and that clients consistently recommend free tax service to family and friends. Thus, Policy
Matters asked very specific questions about the customer experience. Of the more than 1,000
clients surveyed about customer service, only 29 percent were new clients. Clients reiterated that
they value the overall service of free tax preparation as more than one in three clients indicated
they would pay for tax service if not offered for free (see Figure 12). Some twenty percent were
unsure what they would do to file their taxes. Not surprisingly, of those who were new clients,
40% indicated they would pay for taxes if they did receive the service for free.
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Who takes credit? Cuyahoga County EITC 2012
Figure 12: If the Coalition would not have done
your taxes, who would have?
Would not have filed
4%
Relative
10%
Paid tax
preparation
chain
37%
Friend
14%
Self
15%
Unsure/Other
20%
The majority (75%) of clients used 211 for a referral and to make an appointment. The vast majority of
clients were extremely satisfied with the appointment making process (see Figure 13), with 89%
indicating that making an appointment with 211 was “good” or “excellent.”
Figure 13: How would you rate the process of
getting an appointment?
Bad
1%
Okay
10%
Good
32%
Excellent
57%
Additionally, most clients were seen in a very timely manner (see Figure 14). More than 75% of clients
were seen in 30 minutes or less, indicating that despite crowded free tax sites and a strong demand for
service – sites were very efficient. For those who made appointments, the results were even better.
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Who takes credit? Cuyahoga County EITC 2012
Sixty-two percent of those who made appointments waited less than 15 minutes before working with a
tax preparer and less than two percent reported waiting more than 60 minutes.
Figure 14: How long was your wait before you were
More than 60 minutes seen?
8%
30 to 60 minutes
15%
15 to 30
minutes
21%
Less than 15
minutes
56%
As previously indicated, clients were extremely satisfied with their tax preparation experience (see
Figure 15). Ninety-three percent of clients rated their experience as “good” or “excellent.” For those
who made appointments, nearly 70 percent indicated their overall tax experience was “excellent.”
Finally, clients were asked what supplemental or additional services the Coalition could provide to
clients. Only 200 clients responded with additional needs, which include financial services, housing, debt
management, and public assistance.
Figure 15: How would you rate your overall tax
preparation experience?
Okay
7%
Bad
0%
Good
31%
Excellent
62%
www.policymattersohio.org
Who takes credit? Cuyahoga County EITC 2012
Recommendations
There are a variety of ways that the Coalition and overall VITA efforts can be strengthened, but
they require stable and likely increased funding and stronger partnerships with financial
institutions and social service groups. They also require one of the most difficult parts of free tax
preparation – a strong and steady team of tax preparer volunteers.
Outreach/marketing
The Coalition’s marketing efforts remain strong but more can be done to reach filers who use
paid tax preparation or do not file. Beginning in the fall, families should hear about free tax
services and be encouraged to avoid costly loans from paid preparers. The branding should be
consistent and constant. Clients need to hear about the service more than one way and more than
one time. Schools, religious institutions, libraries, and labor unions can play a pivotal role in this
outreach. Many of these groups work with the Coalition but more can be done such as speaking
events, mailers, newsletter inserts, pay-stub inserts, robo-calling, and inserts with W-2 forms.
Some other specific marketing suggestions include:
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The radio is still a popular way to reach low-income families, particularly those headed
by working women. Over the last three years, clients increasingly reported hearing radio
ads about free tax preparation and the EITC.
Increase outreach to the Latino and Asian communities to ensure continued growth. The
coalition has made substantial strides in reaching these communities. Continuing to
develop materials in Spanish is essential. Making particular outreach efforts through city
and county council representatives, libraries, and ward clubs in Hispanic neighborhoods
would be a logical and easy outreach step. We suggest working with the new Cuyahoga
County Council and Cleveland City Council to identify leaders in these neighborhoods.
Use “tear-off” sheets for potential clients so they have the ability to call 2-1-1 at their
leisure and pass a tangible piece of marketing material to others. The paid preparation
chains use this as an effective recruitment method.
Working with the City of Cleveland and Cuyahoga County, the Coalition should have
access to their vendors, funded groups, and partners such as Metro Health Hospitals.
Given the number of health workers who are getting free tax preparation (nine percent), it
is clear this sector would benefit from more service. The City and County work with
many employers who have qualifying employees for free tax preparation.
Services
 While most clients use banks, a small portion would still like to open bank accounts.
Having a bank presence at larger sites, offering first accounts and short-term, safe savings
products, would allow clients to get more from their tax preparation experience.
www.policymattersohio.org
Who takes credit? Cuyahoga County EITC 2012
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Many clients use alternative or “fringe banking” services that drain money from their
paychecks and the local economy. The Coalition should develop or work with other
groups to distribute information about the high fees and interest charges from check
cashers, pawn shops, payday lenders, and rent-to-own stores.
The largest use of refunds is to pay utility bills. There are several utility assistance
programs, specifically around gas and electric bills, that could help many clients in the
low-income range.
The Ohio Benefit Bank provides a unique analysis of government benefit eligibility that
could provide referrals to the Coalition (or vice versa) to strengthen the financial stability
of families. Some VITA sites use OBB software but many are not set up to do so. The
Coalition should ask about clients’ benefit eligibility, current claims, and interest in
learning more. This is particularly critical given the rise in public assistance claims by
clients who use the Coalition for free tax preparation.
Certified housing and income counselors, and community credit counseling services
should play a larger role in helping clients who want to save but need some products,
plans, or goal-setting assistance. Some sites have more participation in this area than
others but each site could offer a call-back or follow-up option for these services. The key
remains connecting the services and products for families, making the process as easy as
possible. New for 2012, Neighborhood Housing Services (NHS) was a successful VITA
site, offering tax and housing assistance in the Slavic Village/Broadway area of
Cleveland. More housing groups doing free tax preparation would help satisfy the
ancillary service request for housing counseling and assistance by clients.
www.policymattersohio.org
Who takes credit? Cuyahoga County EITC 2012
Author
David Rothstein is project director for asset building at Policy Matters Ohio. David researches asset building, tax,
wage, and consumer policy, including the Earned Income Tax Credit, housing and foreclosure issues, and consumer
protection. He serves on the board of managers for the National Community Tax Coalition and is the project director
for the Ohio Coalition for Assets, Savings, and Hope (CASH), Ohio’s only asset building coalition. He is a research
fellow at the New America Foundation in the asset-building program. David also serves on the advisory committee
for the Corporation for Enterprise Development (CFED) and coordinates its Assets and Opportunity Scorecard work
in Ohio. He has won the Greater Cleveland Community Shares Distinguished Activist Award for his work on
predatory lending. David has a B.A. from John Carroll University in Cleveland and a master’s in political science
from Kent State University.
Acknowledgements
We are grateful to Enterprise Community Partners for funding this report. We are thankful for the gracious funders
of the Ohio CASH coalition including the Raymond John Wean Foundation, the Cleveland Foundation, and the
Ohio Benefit Bank. As always, any errors are the sole responsibility of the author.
Policy Matters Ohio is a non-profit, non-partisan research institute dedicated to researching an economy
that works for all in Ohio. Policy Matters seeks to broaden the debate about economic policy by providing
research on issues that matter to Ohio’s working people and their families. Areas of inquiry for Policy
Matters include work, wages, and benefits; education; economic development; energy policy; and tax and
budget policy. Generous funding comes from the Cleveland, Ford, George Gund, Joyce, Sisters of
Charity, St. Luke’s, and Raymond John Wean foundations, as well as the Center on Budget and Policy
Priorities, Greater Cleveland Community Shares and the Economic Policy Institute. To those who want a
more prosperous, equitable, sustainable and inclusive Ohio… Policy Matters.
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© 2012 Policy Matters Ohio. Permission to reproduce this report is granted provided that credit is given to Policy
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