CINCINNATI (January 2025) – United Way of Greater Cincinnati’s Policy With a Splash of Coffee event on Jan. 21 focused on the impact of the organization’s Free Tax Prep initiative and highlighted the effectiveness of the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC).
Discussion participants were Jessica Miranda, Hamilton County Auditor; Annette Tice, EY’s Managing Director of Federal Tax Advisory Services; Jeremy Vaughan, EY’s Cincinnati Office Managing Partner & Global Client Service Leader in the Consumer Sector; Moira Weir, United Way President and CEO; and Matt Long, United Way’s Director of Community Impact Program Management.
United Way’s Free Tax Prep initiative is a partnership with the IRS and its Volunteer Income Tax Assistance program, or VITA. IRS-certified volunteers prepare and file tax returns for eligible taxpayers, ensuring they receive the tax credits they are due, such as the EITC and the CTC.
The EITC, now in its 50th year, is the largest need-tested, antipoverty program that provides cash benefits. Between 1993 and 2019, the EITC was instrumental in lifting nearly 11 million children out of poverty. Yet, according to the IRS, only 80% of eligible Americans claim it each year.
That’s why Free Tax Prep is so vital to communities and why partners like EY deeply matter. EY has been a Free Tax Prep partner since 2010. Through its leadership and volunteer efforts, EY has helped prepare about 3,400 returns, secured $6 million in refunds and saved taxpayers $1 million in filing fees.
“One of the things I really love about this area,” Vaughan said, “is that you can make a difference.”
Indeed, it’s part of EY’s DNA to give back and volunteer, Tice said. By investing time in Free Tax Prep, EY team members are investing in the community in which they live.
Panelists said work can be done at a state and federal level to increase the impact that the tax credits have on our communities.
To alleviate financial hardships during the COVID-19 pandemic, the federal government briefly expanded the EITC and CTC to benefit millions more Americans. Miranda pointed to data that shows an expanded CTC was linked to higher high school graduation rates and higher college attendance rates. In addition, the expanded CTC removed 2.9 million kids from poverty.
While expanding the EITC and CTC happens on a federal level, we can urge our state legislators to make the tax credits fully refundable, putting thousands of dollars back into our community. “You have to contact your state reps and state senators,” Miranda said. “I know we can all get hyper-fixated on the federal level, but state tax policy can impact us even more.”
I encourage you to engage in this work, whether by volunteering with Free Tax Prep or contacting your elected officials to share your views on policy. Our voices and actions can make a positive impact on the communities we serve. As Matt Long noted, “We have the responsibility of making sure everyone has a right to thrive and advance their lives.”