New CT Nonprofit Helps Working Families Secure Tax Benefits and Covid-19 Relief Funds

With another round of Covid-19 stimulus funds approved by Congress, many Connecticut residents are entitled to financial assistance needed to pay rent, buy food and meet other basic needs. Getting the most out of these new funding programs can be complicated. SimplifyCT, a nonprofit, makes this effort easier and at no cost.

“A 21-year old single mother who had earned $6,000 last year working part-time at fast-food restaurants received $4,000 plus her stimulus money,” says SimplifyCT Executive Director Patrick Gentile. “It makes a huge difference.”

Another family received $12,000 by accessing a variety of benefits associated with tax filings, including Earned Income Tax Credits, Child Credits and stimulus payments.

In 2020, the SimplifyCT team helped over 6,000 Connecticut families with the f ree tax preparation. “We hope to provide our free service to many more Connecticut residents in the 2021 tax filing cycle,” says Gentile.

SimplifyCT’s Online Tax Filing Leads to Swift Refunds

At the core of the SimplifyCT effort is the Volunteer Income Tax Assistance (VITA) program. Across the United States, VITA volunteers provide tax preparation service in over 50,000 libraries, community centers, and other public facilities. Most of these sites closed last March because of Covid-19.

Here in Connecticut, a team of IRS-certified VITA volunteers led by Gentile set up an online solution to allow people to access the VITA services during Covid-19. Approved by the IRS, thousands of people were able to file taxes for f ree in 2020. Beyond the standard credits and benefits, the online service also was able to secure Covid-19 relief benefits for many people

“Our goal is to get the payments sent though tax refunds and especially stimulus checks into people’s hands,” says Gentile. He notes that many people who most need assistance right now don’t realize the current and future stimulus money is directly linked to their tax returns. “When they provide their routing number and bank account number they will usually receive their refund electronically within 7-10 days. If they don’t have a bank account we can help them set one up in just ten minutes.”

“In response to the pandemic, the Federal government is now providing another round of relief payment and tax benefits,” says Gentile. “SimplifyCT.org can help eligible households claim every tax benefit they are eligible for. This amounts to thousands of dollars for the average family.”

Get Your Benefits

A number of different benefits can be obtained by filing taxes. For many families, the largest is often the Earned Income Tax Credit (EITC). Though received as part of a tax refund, it is not a refund of taxes that may have been paid throughout the year. Instead, it is an additional payment designed to support working people and their children. The Federal and Connecticut governments both issue Earned Income Tax Credits.

Over 140,000 Connecticut working people received more than $400 million in EITC payments during 2020, according to a Prosperity Now study. These payments help people who may be struggling to pay bills, rent, and mortgage and feed their families. These benefits also infuse our communities with much-needed financial support and stability. The Prosperity Now study found that another $90 million in EITC payments went unclaimed by Connecticut residents.

“A typical family we serve that has two children receives $10,000 which is really impactful,” says Gentile. “These programs are meant to lift up hardworking families who are working for low wages. It can mean an increase of 50% in their annual pay.”

Overcoming the Fear of Filing Online

“Low-income families don’t file their taxes for many reasons ranging f rom misinformation to outright fear,” says Gentile.

One Connecticut family hadn’t filed taxes for a number of years. They were unaware that they had been eligible for a variety of benefits that come with filing taxes. They learned that the 2020 Covid-19 Stimulus payments required a 2019 tax filing. They contacted SimplifyCT for assistance. Working with SimplifyCT tax volunteers, the family filed the past three years in tax returns. They received $25,000 in retroactive earned income credit and stimulus money.

Many people still worry about sharing personal financial information online. SimplifyCT.org uses Code for America, an encrypted database that is endorsed by the IRS. Once your taxes are filed your financial information will be deleted by the end of the tax season.

Online, Drop Off or Drive-Thru

“My whole goal in founding the nonprofit was to find a secure and simple way to get immediate benefits so people don’t have to wade through the process. The online process that we setup will make it much easier for people to file their taxes even after we move out of the Covid-19 crisis,” says Gentile.

But many VITA clients still prefer to connect in person with their volunteer preparer, so SimplifyCT is setting up contactless drop off and drive-thru sites. These are now located in lower Fairfield County, but Gentile says that he is seeking partnerships with other CT nonprofits who might be able support dropoff and drive-thru services.

Visit SimplifyCT.org to start your f ree tax prep now.