Tax season can feel like a nightmare, especially for the Latino community where financial education isn’t always part of the conversation. In the latest episode of the Money Chisme Podcast, Nancy L. Sasaki, President and CEO of United Way San Diego County, breaks down essential tax preparation resources, Earned Income Tax Credit (EITC) and financial empowerment programs designed to help our community build financial literacy.
The Earned Income Tax Credit (EITC) Coalition: A Lifeline for Low-Income Taxpayers
One of the most crucial takeaways from Nancy’s conversation is the work of the Earned Income Tax Credit (EITC) Coalition, a program United Way San Diego has been running since 2003. This coalition brings together 45 organizations to provide free tax preparation services for individuals earning less than $67,000 annually.
A common misconception among those in this income bracket is that filing taxes isn’t necessary or that they won’t receive a refund. This misunderstanding leaves significant money on the table. But by calling 211, residents can easily find free, local tax preparation services near their home or workplace.
Understanding ITINs and Filing Taxes Without a Social Security Number
The conversation also covered Individual Taxpayer Identification Numbers (ITINs), which allow people without Social Security numbers to file taxes. Filing taxes is required by law regardless of immigration status.
Nancy acknowledged the concern many feel about privacy protections, emphasizing that individuals need to assess these risks while understanding the potential benefits for future immigration proceedings.
Expert Tax Preparers Dedicated to Maximizing Returns
The tax preparers at these locations are specially trained to help low-income individuals and families maximize their tax refunds. They know what questions to ask and can even review previous years’ filings to ensure accuracy and uncover missed opportunities.
Often, their expertise surpasses what paid preparers offer for this demographic. The result? Bigger refunds that help recipients pay down debt, build savings, or simply make ends meet. For many in the Latino community who take pride in handling things independently, this free service offers quality guidance without the financial burden.
Building Generational Wealth Through Financial Literacy
For many first-generation Americans like podcast host Violeta, financial literacy wasn’t something taught at home. Programs like SparkPoint are essential for building generational wealth. They provide guidance on foundational concepts such as:
- Managing paychecks effectively
- Building credit responsibly
- Creating realistic savings plans
Recognizing that financial education benefits entire households, United Way even extends these services to families of high school students involved in their STEAM to Careers program.
SparkPoint: United Way’s Comprehensive Financial Literacy Program
United Way San Diego’s commitment to financial empowerment doesn’t end with tax preparation. Their SparkPoint program offers comprehensive coaching in four key areas:
- Increasing Income
- Building Savings
- Improving Credit Scores
- Reducing Debt
Participants work with counselors through personalized coaching sessions that last from six to twelve months. Public workshops led by bankers and tax professionals are also available to teach community members essential financial concepts.
Building Community Partnerships to Close Financial Literacy Gaps
United Way’s approach to financial empowerment emphasizes the importance of community partnerships. By collaborating with schools, government agencies, and other nonprofits, they’ve built a network of support that spans San Diego County. Their work shows that true financial empowerment takes more than individual effort—it requires a community-wide investment in education and resources.
Frequently Asked Questions (FAQs)
1. What is the EITC Coalition?
The EITC Coalition is a group of 45 organizations partnered with United Way to provide free tax preparation services for individuals earning less than $67,000 annually.
2. How can I access free tax preparation services in San Diego County?
Call 211 to find a convenient tax preparation location near your home or workplace.
3. What is SparkPoint, and how can it help me?
SparkPoint is United Way’s financial literacy program that provides personalized coaching to help participants increase income, build savings, improve credit scores, and reduce debt.
4. Can I file taxes if I don’t have a Social Security number?
Yes, you can file taxes using an Individual Taxpayer Identification Number (ITIN).
5. Why is Financial Literacy Month important?
Financial Literacy Month is an opportunity to raise awareness about the importance of financial education and to provide resources for building economic mobility and generational wealth.
