Values: Inclusiveness, Non- par.sanship, Customer Empowerment, and Quality Service

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2 Mission: The Omaha EITC Coali.on promotes the claiming of tax credits through quality volunteer tax return prepara.on with a goal of providing educa.onal tools and community resources for family asset development. Vision: The Coali.on promotes financial stability through empowered customers who use tax credits and tax refunds to own and maintain assets. Values: Inclusiveness, Non- par.sanship, Customer Empowerment, and Quality Service

3 Report on 2011 Tax Year Be Amazing: An African- American Economic Journey Increasing the La.no Stake in Omaha s Economy At the Crossroads of Risk & Opportunity for Persons with Disabili.es Change our Constant Companion Context of Change Poverty Dialogue Series to spur discussion Goal: Customer Input and Ac.on

4 VITA Means to Me

5 The Omaha EITC Coali.on s priority is customer empowerment The prepara.on of tax returns provides a complete look into a person s income, family composi.on, expenses, opportuni.es and challenges The opportunity to influence financial decisions presents itself as our cer.fied volunteers dialogue with a customer about their financial life Our approach to financial educa.on is intense, personal, honest, and direct We want our customers to come to know themselves and to see and take advantage of opportuni.es that arise through the involvement of our Coali.on partners in improving their financial stability We welcome new partners to the Coali.on to help low income communi.es progress in economic success

6 Coali.on s approach to poverty reduc.on : Increasing access to financial services Increasing wealth by building savings Using tax credits (especially EITC, CTC, DC), Savings, CDs, bank accounts, educa.on investment, credit repair leading to more access to mainstream financial services, be^er interest rates, more access to credit, stronger rela.onships with banks Promo.ng programs that help families and children because of the cyclical effect of poverty and the damaging impacts of childhood poverty The Omaha EITC Coali.on understands asset development to be a universal process whereby people of all income levels aspire to accumulate, maintain and preserve economic resources to build las.ng wealth and par.cipate fully in the community as empowered and educated owners with increased financial knowledge and capability, access to credit, savings and investments

7 Severe recent recession has produced a changing climate in part focused on new accountabili.es and a new structure of investment, public and private The old service- based economy is being replaced by an emerging economic model in part characterized by: Long- term unemployment Knowledge- based jobs with greater expecta.ons and more stringent qualifica.ons Nebraska s strengths Agriculture basis Diversified urban and semi- rural businesses S.ll, not immune to na.onal trends

8 On a Clear Night, you can see forever. except for the Icebergs in your path.

9 23% of Americans (18% of Nebraskans) live in asset poverty 14% of Americans (12% of Nebraskans) live in extreme asset poverty = ZERO assets Accessed from: h^p://scorecard.cfed.org/state_data/nebraska.php

10 Community Strengths Between , the percentage of African- American high school graduates a^ending college rose from 53% to 69% (Empowerment Network, 2012) An amazing 82% growth rate in the first decade of this century in Omaha for La.no Community Nearly half of La.nos filed Married Filing Jointly Other important recent gains in the community: A recent fall in gun violence The launching of community orientated organiza.ons (Communi.es in Schools, Impact One, and the North Omaha Neighborhood Alliance) The opening of new businesses New housing units

11 Overall Tax Results from 2011 Average Adjusted Gross Income (AGI) was $20,111 The total amount in federal tax refunds was $6,862,194 (average tax refund of $1,857) State Refunds were $1,200,814 (average state refund was $255) The percentage of the total refund amount derived from income tax credits was 48 For many customers, income tax credits supplement annual earned income and liq an individual or family from poverty.

12 2011 Tax Results Iowa 5 38,322 women (13 percent) in the district live in poverty 3,044 African- Americans (48 percent) in the district live in poverty 11,981 Latinos (32 percent) in the district live in poverty Nebraska 2 45,434 women (14 percent) in the district live in poverty 20,728 African- Americans (34 percent) in the district live in poverty 20,478 Latinos (30 percent) in the district live in poverty 1,538 Asian- Americans (11 percent) in the district live in poverty Nebraska 1 42,460 women (13 percent) in the district live in poverty 6,108 African-Americans (49 percent) in the district live in poverty 11,124 Latinos (26 percent) in the district live in poverty 1,527 Asian-Americans (13 percent) in the district live in poverty 3,351 American Indian and Alaska Natives (47 percent) in the district live in poverty

13 Banked Vs Unbanked Banked un- Banked

14 2011 Tax results Paid Bills Paid down a debt Saved it Bought a car or a major appliance Recre.onal use or vaca.ons Spent come, saved some, and/or invested some I did not get a refund I owed IRS N/A

15 2011 Tax Results Asset Schedule TY Number of Schedules Sch A Sch B Sch C Sch C- EZ Sch D Sch E Sch F Split Refund

16 Financial Behaviors TY 2011 Financial Behaviors Savings Re.rement Saved w/ Someone else Money Order CheckCasher Wired Money Payday None

17 Savings Habits TY 2011 Savings Habits 3-5% 5% 5% + 5% No Monthly Savings 66% 1-3% 24%

18 Go from This to That

19 Health Care Coverage TY 2011 Type of Health Coverage No Insurance 44% EMPLOYER 35% Medicaid 9% Medicare 7% COBRA 1% LTC 0% Self- Employed 1% Individual 3%

20 A paramount concern for the Coali.on s customers is the overwhelming large propor.on of total income tax credits to total income tax refunds. Most tax credits will be significantly reduced or expire on 12/31/12; this is the fiscal cliff we hear about in the news Progress in formal educa.on and job training skills are at risk due to the loss of the Educa.on Credits The loss of the Mortgage Forgiveness Act of 2007 is also a drama.c blow to the low to middle income

21 Inside Look The Computer can t tell you the emo.onal story. It can give you the exact mathema.cal design, but what s missing is the eyebrows. Frank Zappa

22 Expiring Issues: Bush Tax Cuts EIC CTC Educa.on Credits Social Security Holiday General Sales Tax Deduc.on, AMT Patch, Educator Expenses, Tui.on and Fees Deduc.on Mortgage Forgiveness Act Mandatory Cuts (Sequestra.on) Real Impact of the Affordable Care Act

23 A Typical Family MFJ, 2 small children, $46,800 earned income, job loss & unemployment, lost home to foreclosure. In 2012: Refund $3,870 In 2013 (given no changes): Amount Due: $11,895

24 AnXcipate what will happen in the future Don t get too comfortable with your goodies Prepare for higher taxes Educate your family and kids to save and prepare for the worst Empower clients to raise their voices Educate customers to deal with: finances, economic hardships, and poverty

25 Outreach Conversa.ons about the tax code, role of credits, reweaving a safety net for the neediest Partnering with Community Leaders and Organiza.ons Wri.ng le^ers and Visi.ng Elected Officials No.fying Customers of Tax Law Changes

26 VITA =

27 BE THE CHANGE

28 At Your Service Ed Leahy Director, Omaha EITC CoaliXon 3605 Q St Omaha, NE omahaeitc@cox.net Facebook.com/OmahaEITC