Student Tax Prep Volunteers Help Return $1.47 Million to Local Residents

This year, students in Colgate’s Volunteer Income Tax Assistance (VITA) program returned $1.47 million to residents living in Madison and Chenango counties. The program began in 2004 and has been led by Nicole Simpson, W. Bradford Wiley Professor of international economics. It is funded by the University’s Upstate Institute and NBT Bank.

Each spring, 15–20 students help low-income, local residents file their federal and state income taxes free of charge. The program allows most VITA clients to claim the Earned Income Tax Credit and saves local families hundreds of dollars in tax preparation fees. VITA also gives Colgate student volunteers an opportunity to gain real-world tax preparation experience and help support low-income families in the community. The program is in coordination with the C.A.S.H. (Creating Assets, Savings and Hope) Coalition of Madison and Chenango Counties.

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• Simpson teaches the course Volunteer Income Tax Assistance (SOSC 275), where students learn about the complexities of the U.S. income tax system and the role of the Earned Income Credit and Child Tax Credits in pushing hundreds of local families out of poverty. Student volunteers are trained and must pass an IRS certification test before working on returns; many of the students participate in the program for several years.
• More than 12,500 tax returns have been filed through the VITA program since 2004, with more than 80% of clients returning year after year.
• The VITA program currently serves 700–800 households a year, and continues to assist new clients each year.
• The average tax return of a VITA client represents more than 20% of their annual income (with the average income around $30,000).
• VITA services have saved local families more than $200,000 in tax preparation services per year. 

This story originally appeared in the Summer 2023 issue of the Colgate Magazine.