Financial Literacy Program

The Akron Summit Earned Income Tax Credit (EITC) Program is a program administered by Akron Summit Community Action, Inc. The EITC Program provides free tax preparation to working low-income individuals and families by trained and certified volunteers through the Volunteer Income Tax Assistance (VITA) Program. http://www.irs.gov/individuals/article/0,,id=107626,00.html

Congress originally approved the tax credit legislation in 1975 in part to offset the burden of social security taxes and to provide an incentive to work. When the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.

The EITC Program is guided by a community-based Coalition, with Akron Mayor Don Plusquellic as honorary chair, the Internal Revenue Service, Akron Summit Community Action Inc., Akron Metropolitan Housing Authority (AMHA), Info line Inc., Akron General Medical Center, Akron Children’s Hospital, United Way of Summit County, the American Red Cross, the Summit Chapter of the Ohio Credit Union League, Community Legal Aid, Akron Summit County Public Library, Summit County Ohio Jobs and Family Services, Akron Public Schools and Summit County Executive Office.

To receive a refund, taxpayers must meet certain requirements and file a tax return.  The taxpayers could qualify even if they paid little or no income tax during the year.

The EITC has no effect on certain welfare benefits. In most cases, EITC payments will not be used to determine eligibility for Medicaid, Supplemental Security Income (SSI), food stamps, low-income housing or most Temporary Assistance for Needy Families (TANF) payments.

The credit enjoys wide bipartisan support because of its proven record in helping to reduce poverty, reward work, provide tax relief, stimulate the economy and meet basic expenses for working families.

INDIVIDUAL DEVELOPMENT ACCOUNT (IDA)

The Individual Development Account (IDA) Program is designed to promote and encourage asset building through financial literacy education and discipline monthly savings. Asset building is an anti-poverty strategy that helps low-income individuals and families move toward greater self-sufficiency by accumulating savings and purchasing long-term assets. The theory behind this approach is that by helping individuals and families purchase an asset, as opposed to simply increasing their income, provides stability that may allow them to escape the cycle of poverty permanently. Examples of long-term assets include a home, higher education and training, and/or starting a small business.

The key to the success of The IDA Program is the economic education that participants receive along with monthly and quarterly follow up. The IDA Program curriculum incorporates teaching budgeting skills, reducing expenditures, repairing credit, applying for the Earned Income Tax Credit, avoiding predatory lenders, and accessing financial services. The IDA Program helps participants purchase their desired asset through the achievement of savings goal and completion of required educational course work which ultimately allows them to become a part of the mainstream economic system.