real economic impact tour real economic impact for americans with disabilities assessable assets:...
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Real Economic Impactfor
Americans with Disabilities
Assessable Assets: Bringing Together the Disability and Asset-Building
CommunitiesNational Disability Institute
November 11, 2009
Johnette Hartnett, Ed.D Director Research & REI Tour
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National Disability Institute Build a better economic future Americans with disabilities.
National Disability Institute is a national research and development organization to promote income preservation and asset development for persons with disabilities nationwide.
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What is Asset Development?
Asset Development is a series of strategies that has the potential to help people with disabilities improve their economic status, expand opportunities for community participation, and positively impact the quality of life experience.
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Persons with Disabilities?
Access to Assets Provide greater financial security and independence
Improve community participation and quality of life
Improve mental and physical health
Increase positive self-concept
Increase status and expectations with other community stakeholders
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Disability Prevalence
Sensory 4.3% or 11.7 million Physical 9.4% or 25.7 million Mental 5.8% or 15.9 million Self-Care 3.0% or 8.2 million Go-Outside Home 5.4% or 12.4 million Employment 7.0% or 13.6 million
Cornell 2008 Disability Status Report Ages 5 and Older
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Asset Poverty
Asset poverty varies significantly by race and gender 33% of all American households have zero or
negative net assets. 54% of Hispanic households have a similar status. 60% of African American households have no net
assets. For persons with disabilities, estimates are as high as
80%.
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Economic Stability through EITC
Earned Income Tax Credit Represents about 25% of total income for year Is a credit for people who do not earn high
incomes Reduce taxes and results in a refund Workers keep more of what they earn 589,129 returns claimed EITC in 2009 EITC increased by 10.5% in 2009 (electronic file
and Tax Wise data not paid preparers) $793.6 million in EITC returns
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Receiving Public Benefits
Federal Law generally excludes counting EITC as additional income in determining eligibility for other federal public benefits. Including SSI, Medicaid, Veteran’s Benefits, HeadStart, etc.
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Taxpayer ResearchCustomer Characteristics: RS SPEC Benchmark Study, May
2007
5.5 million taxpayers filing a return with a disability between 18 & 59
Additional 1.3 to 1.6 million non-filers working with a disability
Median AGI of $19,100 vs. $33,800 for non-disabled
51% had AGI < than $20,000 vs. 32% of non-disabled
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Taxpayer Research 59% use a computer at home
compared to 76% of persons with no disability 31% prepare own return
compared to 42% with no disability 66% use paid preparer
compared to 56% with no disability 10% use tax prep software
compared to 20% with no disability 37% less likely to have savings or investments
compared to 51% with no disabilityIRS SPEC Benchmark Study (May 2007)
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Taxpayer Research
Survey results of 3,199 filers walking into free tax preparation sites in NYC, Wichita, West Palm Beach, and Boston (Ford Study, NDI, 2006)30% checking account12% savings account24% had both checking and savings25% received EITC57% need special accommodations to file taxes and do banking0% had an Individual Development Account (matched savings accounts)12% on SSI9% on SSDI42 average age compared to 32 years for non-disability taxpayer using free tax assistance
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Taxpayer Research
NDI/IRS W&I Research
OMB Approved Focus Study Instrument Fear of losing health care coverage if they work or save
(SSI has resource limit for single beneficiary of $2000) Desire to get off public benefits Lack of basic financial and tax knowledge Lack of relationship with local financial institution Lack of access to accessible financial and tax services,
products and information Lack of materials in alternative formats (Braille, CD, large
print, 504 compliant websites and software, etc.)
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Access to Free Tax Assistance
National Community Tax Coalition www.NCTC.org Over 300 coalitions with over 15,000 volunteers provide free tax
preparation In 2009 over 3 million returns prepared Representing over $3 billion in refunds
Real Economic Impact Tour www.reitour.org 100 REI Tour Cities in 2010 campaign 59 cities in 2009 received mini grants to build disability capacity 181,152 returns prepared - $176.6 mil returns and $36.2 mil
saved in preparer fees
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Building New Relationships Mayors’ Offices United Way IRS FDIC Taxpayers Assistance Services Financial Planning Association IDA Providers EITC Coalitions Financial Institutions Community Action Agencies Goodwill International One Stop Employment Offices National Federation of
Community Development Credit Unions
AT&T and Veteran Affinity Wounded Warriors
State Developmental Disabilities Councils
Easter Seals Work Incentive Planning and
Assistance Workers Centers for Independent Living Disability Program Navigators Associations for the Blind and
Deaf National Council on Independent
Living Bank of America Disability
Affinity Group Merrill Lynch Veteran Service Organizations WallMart 54Freedom
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REI Tour ActivitiesPurpose: Increase knowledge about tax filing and financial services
through fee tax assistance and other asset building strategies.
Development of disability workgroup
Volunteer tax preparation assistance
Participate in monthly calls during tax season
Participate in REI Tour audio conference series
Participate in yearly National Mayor’s Academy
Opportunity to participate in coalition’s financial education and asset building programs
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REI Tour Activities Training about access and use of public benefits
Development of Corporate Affinity Groups (Disability and Veteran)
Training about federal work incentives and public benefits to promote self-sufficiency
Training and technical assistance in how to leverage existing community resources such as One Stops, Disability Program Navigators, Vocational Rehabilitation, SSA Work Incentive Program Assistance, employee disability and veteran affinity groups – includes AT&T and Bank of America.
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Measures of Success
Short Term# of free returns filed# of EITC refunds$ of refunds# of New Partnerships –
National, State and Local# of Outreaches – Fliers,
PSA’s, Media
Long TermAccess to accessible
financial and tax education, knowledge and relationships
Reduced reliance on social security benefits
Increase use of financial incentives and benefits
Real Economic Impact Tour success is measured by a series of performance indicators:
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REI Tour OutcomesYEAR CITIES PARTNERS REFUNDS
PREPAREDTAX REFUNDS RECEIVED
$$ SAVED
2005 11 ----- 7,600 $6.8 mil $1.5 mil
2006 30 200 17,223 $15.3 mil $3.4 mil
2007 54 355 36,275 $32.6 mil $7.2 mil
2008 62 555 90,653 $81.0 mil $18.1 mil
2009 84 634 181,152 $176.6 mil $36.2 mil
2010 100
TOTAL: 332,903 $312.3 mil $66.4 mil
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Disability Inclusive Economic Empowerment
Asset Summits – 20 summits in 5 states
Financial Fitness Expos – 5 expos
Financial Education – Pilot testing curriculum in three states and designing web-based curriculum for State of Fl
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New Tools and Strategies for Building Disability Inclusive Economic Empowerment
REI Tour DeafTax.com Pilot (2009) Use of Video Relay Service (VRS) Technology to test pilot preparing taxes for deaf taxpayers in real time remotely six cities 2009
BEST Fl Project – Building Economic Strength Together – Wounded Warrior, Provider Network and Youth with Disabilities – tested 6 month curriculum (75 participants)
VISA developed Financial Soccer full of questions about disability and public benefits
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Join REI TOUR in your city! Go to www.reitour.org
www.REITour.org
Johnette [email protected]
(202) 296-2043
Michael Roush
(727) 278-1352