State Employees’ Credit Union (SECU) has just completed its second year of participation in the IRS Volunteer Income Tax Assistance (VITA) program and saw a marked increase in volume for the 2009 tax season. SECU VITA personnel completed more than 25,000 returns, generating over $33 million in total refunds for North Carolinians! All 223 SECU branch locations served as VITA sites, with at least three Credit Union staff members trained as VITA preparers. Just as impressive as the refunds claimed through the SECU VITA program were the savings generated by the free tax service, as a total of $3.75 million was saved in preparation fees typically charged by for-profit tax preparation services. In addition, $15.7 million in tax credits, including $9.7 million in Earned Income Tax Credits and $5.2 million in Child Tax Credits, were claimed through the SECU program --- providing a potential boost in North Carolina’s economy. The EITC program is viewed as the nation’s most successful anti-poverty program; however, as many as 60% of EITC recipients are often the target of high cost refund anticipation loans and refund anticipation checks, effectively reducing the amount of their tax credit.
In order to maximize the EITC dollars kept by the taxpayers, the Credit Union also offered a consumer friendly, tax refund anticipation loan in conjunction with the VITA program which saved members an additional $50,000 in interest expense costs, compared to using a traditional refund anticipation product. SECU’s loan provided a low-cost alternative to the industry-standard refund anticipation product often viewed as a predatory-type loan. And, by promoting the advantages of e-filing and direct deposit, the Credit Union helped North Carolinians avoid approximately $175,000 in refund anticipation loan costs --- keeping more money in the consumers’ pockets!
SECU member Johnny Hughes remarks on his experience in the Credit Union’s Murphy, NC office, “I always used a paid preparer until I read about the VITA program offered at SECU. Credit Union personnel went above and beyond to help me with my return. I cannot express how much I appreciate SECU offering this service. I am a retired State employee and have used the Credit Union for over twenty years. After my tax return was prepared through the VITA program, I left the Credit Union even more proud to be a member! Thank you.”
Veda D. Howell, Senior Stakeholder Relationship Tax Consultant with the Internal Revenue Service, comments, "The IRS VITA partnership with SECU has been a win-win situation for all parties—especially for the NC taxpayers who have been assisted in their own communities in 97 of the 100 NC counties. This partnership supports several IRS initiatives that emphasize increasing the availability of free tax help and e-filing to low-income taxpayers, and to taxpayers who live in rural areas. We look forward to next year!"
Josh Kelly, SECU Senior Vice-President of Tax Preparation Services, adds, “The dramatic increase in the volume of returns processed through the Credit Union’s VITA program this year is proof of the positive difference SECU is making for North Carolinians. We applaud and appreciate the efforts of SECU’s VITA preparers in helping our State’s citizens claim over $33 million in much-needed refunds and tax credits. We look forward to these funds helping the VITA participants establish a more positive financial outlook.”
About SECU
SECU is a non-profit financial cooperative owned by its members. SECU has been providing the employees of the State of North Carolina and their families with consumer financial services for over 70 years. Currently serving over 1.5 million members, SECU provides services through 224 branch offices, more than 1,000 ATMs, 24/7 call centers and a website—www.ncsecu.org.
Contacts:
State Employees’ Credit Union
Leigh Brady, Senior Vice
President
Education Services, SECU
Phone: 919-807-8344,
Mobile: 919-327-8869
leigh.brady@ncsecu.org