Self-Employment Tax Initiative

CFED’S ASSETS LEARNING CONFERENCESEPTEMBER 22 – 24, 2010

WASHINGTON, DC

Self-Employment Tax Initiative

Empowering Entrepreneurs at Tax Time

Session Goals

Overview of Self-Employment Tax Initiative (SETI)

Describe Other SE Tax Prep Models & Strategies

Discuss Plans for 2011Introduce 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 Fees21% First-time SE Filers52% Rely Solely on SE Income88% Reported Net Profit33% Latino; 27% African-American; 27% White;

5% Asian; 1% Native American13% Childcare; 8% Construction; 8% Janitorial;

5% Drivers & Couriers

DROP-OFF STRATEGYWEB-BASED TAX PREP

REFERRAL PARTNERSHIPS

Promising Practices

The Drop-off Strategy

Maximum Flexibility for Both Clients & Staff/Volunteers

Year-round Support; Quarterly Reminders

Effective Strategy for Serving Remote, Rural Areas

Web-based Tax Prep

Technology Link Clients to Tax Prep Through Partners

Video conferencingTrain Partners to

Prepare ClientsSuitable for Remote

Locations & to Serve People with Disabilities

Maximize Use of Specially-trained Staff & Volunteers

Tech

Referral Partnerships

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.

INNOVATION CLUSTERSCHEDULE C PILOT

RESOURCE BANK & FIELD TA

SETI: 2010 – 2011

Tax Year 2010 Innovation Cluster

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

HTTP://CFED.ORG/PROGRAMS/SETI/

LAURA ARCEDIRECTOR, SETI

LARCE@CFED.ORG

Thank You!