The Volunteer Income Tax Assistance (VITA) program offers free tax preparation and filing to low--and moderate--income individuals, families, persons with disabilities, the elderly, and limited English-speaking taxpayers who need assistance in preparing their own tax returns in York County. Families (2 or more people) who made $60,000 or less and individuals who made $45,000 or less in 2022 may be eligible to receive FREE tax preparation.

In 2023, York County had two sites offering tax preparation in English and Spanish. Next year, we would like to double that.

United Way of York County has set a Bold Goal!

Working households that struggle to make ends meet are also called ALICE--Asset Limited, Income Constrained, Employed. These individuals are the backbone of our community serving in essential positions, but cannot keep up with skyrocketing inflation.

They need our help.

Introduction

While headlines often focus on low-income households receiving government assistance, United For ALICE highlights that ALICE households, despite their financial challenges, make significant contributions to our economy by actively participating in the workforce, purchasing goods and services, and paying taxes. On average, these households allocate approximately 22 percent of their earnings towards income, property, and wage taxes.

ALICE families face a considerable burden when it comes to paying taxes. Their income levels typically exceed the Federal Poverty Level (FPL), which renders them ineligible for benefits like the Earned Income Tax Credit (EITC) and renter tax credits, as well as public assistance programs like SNAP and Medicaid that could alleviate their overall tax burden. However, they still earn insufficient income to accumulate assets that would provide tax relief, such as homeownership for mortgage tax deductions or ownership of capital investments like stocks or bonds that grow tax-free. This juxtaposition places a heavy strain on ALICE families in terms of their tax responsibilities.

ALICE and Income Tax

ALICE households utilize their tax refunds as a means to stimulate the local economy. These refunds often serve as a much-needed boost for ALICE families, who may struggle to make ends meet throughout the year. When ALICE households receive their tax refunds, they may allocate these funds towards local businesses, making purchases and availing themselves of services. This spending injects money directly into the local economy, supporting small businesses and creating a ripple effect of economic activity.

ALICE families may also use their tax refunds to cover essential expenses, such as housing, healthcare, education, and transportation, which further contributes to the local economy. These expenditures not only meet immediate needs but also support local industries and employment opportunities.

In addition, some ALICE households may choose to save or invest their tax refunds, creating opportunities for long-term economic growth. Savings may be used to build an emergency fund, invest in education or skills training, or contribute to retirement accounts, ultimately increasing financial stability and resilience.

Overall, the use of tax refunds by ALICE households has a significant impact on the local economy. By spending, saving, or investing these funds, ALICE families contribute to economic growth, support local businesses, and improve their own financial well-being.