Self-Employment Tax Initiative

Empowering Entrepreneurs at Tax Time

C F E D ’ S A S S E T S L E A R N I N G C O N F E R E N C E S E P T E M B E R 2 2 – 2 4 , 2 0 1 0 W A S H I N G T O N , D C

Session Goals     Overview of Self-Employment Tax Initiative (SETI) Describe Other SE Tax Prep Models & Strategies Discuss Plans for 2011 Introduce the SETI Resource Bank

Self-Employment Tax Initiative

Using the tax code to deliver essential business development and financial services to low-income entrepreneurs.

• • • 4-year Demonstration: Tax Years 2006 – 2009 Data Analysis & Research on SE as Self-help Jobs Policy to Improve Tax Interface for SE Businesses

SETI: Over 33,000 SE Tax Filings        62% Claimed Refundable Credits Over $30 Million Over $11 million Saved in Tax Prep Fees 21% First-time SE Filers 52% Rely Solely on SE Income 88% Reported Net Profit 33% Latino; 27% African-American; 27% White; 5% Asian; 1% Native American 13% Childcare; 8% Construction; 8% Janitorial; 5% Drivers & Couriers

Promising Practices

D R O P - O F F S T R A T E G Y W E B - B A S E D T A X P R E P R E F E R R A L P A R T N E R S H I P S

The Drop-off Strategy 4. Clients Return to Review & Sign 1. Tax Prep Packets Mailed 3. Taxes Prepared by Volunteers 2. Complete Packets Dropped off    Maximum Flexibility for Both Clients & Staff/Volunteers Year-round Support; Quarterly Reminders Effective Strategy for Serving Remote, Rural Areas

SE

Web-based Tax Prep

Businesses Expert Tax Prep

     Technology Link Clients to Tax Prep Through Partners Video conferencing Train Partners to Prepare Clients Suitable for Remote Locations & to Serve People with Disabilities Maximize Use of Specially-trained Staff & Volunteers

Tax Credits Microloans Referral Partnerships Training & Coaching

Sch C Tax Prep

Financial Products Back-office Support     Leverage Organizational Strengths with Partnerships Fill the Gaps for Client Needs Tax Time Link to Asset Building Products & Services to Help Grow Businesses MDOs, VITA, credit unions, community colleges, etc.

SETI: 2010 – 2011

I N N O V A T I O N C L U S T E R S C H E D U L E C P I L O T R E S O U R C E B A N K & F I E L D T A

Tax Year 2010 Innovation Cluster Earned-income • Brooklyn • Credit Union Partnership • Link to Training, Business Accts & Loans State Microenterprise Assoc.

• California • MDO Network Partnership • Link to Training & Microloans Community College • Seattle • VITA-Community College Partnership • Link to Training & Coaching

http://cfed.org/programs/seti/resource_bank/

Thank You!

H T T P : / / C F E D . O R G / P R O G R A M S / S E T I / L A U R A A R C E D I R E C T O R , S E T I L A R C E @ C F E D . O R G