Financial Stability

Today, community issues stemming from personal, economic and environmental factors are growing increasingly complex and more difficult. More and more, hard-working individuals and families are unable to get ahead financially.

Wages have not kept pace with the rising cost of housing, healthcare, and education in many areas, and skill levels have not stayed in alignment with changing industry needs. As a result, more than 12 percent of the U.S. population has an income below the federal poverty level, in spite of the fact that many are employed, some with two or three jobs.

Many individuals and families are walking a financial tightrope -- they are barely getting by with no ability to save for college, a home, or for retirement. Credit card debt in America has tripled, from $238 billion in 1989 to over $850 billion today, with one out of three households using credit cards to cover basic living expenses, including rent, mortgage payments, groceries, utilities, and insurance. "Generation Xers" (individuals born between 1961 and 1981) are on track to be the first generation in American history with a lower standard of living than their parents'.

The United Way movement seeks to strengthen communities by identifying and tackling the underlying causes of the most serious social issues facing our nation. Increasingly, the economic and financial pressures facing hard-working people are exacerbating the other social issues. So United Way has expanded its work to include strengthening the financial stability of individuals and families.

Who benefits from this work?

• Hard-working families by helping them to:
• Increase Income
• Build Savings
• Gain and Sustain Assets
• Employers by creating a stronger, more crisis-resistant workforce.
• Communities by increasing home and business ownership, and the financial stability of its residents.

How is the Financial Stability Partnership of Atlantic County doing this?

Tax Assistance Sites: FREE Tax Preparation is available at several sites in February, March and April. Atlantic County residents can get their taxes completed by IRS trained volunteers for FREE! For more information, or to find a site near you please contact 609-404-4483 or dial 2-1-1

When taxpayers use a paid preparer, they often lose much of their return to high commercial preparation fees, "rapid refund" loans, and check-cashing operations. The opportunity for asset-building is lost or diminished. On average people pay 10.3 % ($200) of their tax refund to paid tax preparers, when they access a Volunteer Income Tax Assistance site (VITA) this is money saved!

The Earned Income Tax Credit Campaign: The Earned Income Tax Credit (EITC) is a federal income tax credit available to working individuals and families. This credit is not based on taxes withheld from a person's paycheck, but instead on how much total income a taxpayer earned over the course of a year. A low-income family in New Jersey with two or more children could qualify for as much as $5,657 in federal and state tax credits for the 2009 tax year. It is the nation's largest and most effective federal aid program. Eligibility for the EITC is based on income level, marital status, and number of dependent children. These dollars can be turned into savings or invested in the local economy. It can help build the financial assets of a family and move them forward on their path to self-sufficiency.

As an individual or family's earned income rises, the amount of EITC they are eligible for also rises, providing an incentive to obtain and maintain employment. It then begins to decrease as an individual or family reaches an income level that allows them a measure of self-sufficiency.

It is estimated that 25% of those eligible for EITC do not know about it, they are missing out on thousands of dollars. With the average credit of $2,000 that is left unclaimed, more than $15 million dollars is not put back into our community.

United Way of Atlantic County is working with the Internal Revenue Service (IRS) to help spread the message about the importance of this tax credit.

You or Someone You Know Could Be Eligible! If you or someone you know worked full or part-time, you might be eligible for the Earned Income Tax Credit. Workers who qualify for the EITC and file a federal (and New Jersey State) tax return can receive some or all of the federal income tax that was taken out of their pay during the year. When the amount of the EITC exceeds the amount of income tax owed, the difference is paid back to the filer in the form of a rebate.

Additionally, taxpayers can file a return and claim the EITC for three prior years if not claimed previously. There is no late filing penalty unless the worker owed income tax in the prior year (the amount owed to the IRS would be deducted from the EITC). The Financial Stability Partnership of Atlantic County is using the free VITA sites to promote the EITC and help families achieve Financial Stability.

We are working on many other tools, programs, and products to help individuals and families reach financial stability leading to long term independence.

For more information, contact 609-404-4483