2011 Money Management Assistant Manual

8/8/2019 2011 Money Management Assistant Manual

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Money ManagementAssistant Manual


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This manual is a work product of the Center for Economic Progress and cannot be used, reproduced,

or distributed without the written consent of the Center for Economic Progress, 29 East Madison, Suite 900, Chicago, IL 60602.

Contact [email protected] for more information. 2010 Center for Economic Progress


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You Can Help Our Clients Save! 2

Why Encourage Savings? 2

How Does a Tax Site Operate? 4

Roles at the Tax Site 5

MMA Responsibilities 7

Promoting Direct Deposit 8

How Do I Activate an Advent Prepaid Debit Card? 10

Promoting Savings 16

Savings Options 17

Additional Financial Services 18

Tracking Client Participation 19

Site Orientation 19

Supplemental Intake Form 20

TABLE OF CONTENTS


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You Can Help Our Clients Save!

The Center or Economic Progress helps hard-working, low-income amilies move rom nancial uncertainty to

nancial security.

Local in service but national in voice, the Center achieves this mission in three ways:

We provide trusted tax and fnancial counseling, giving Illinois amilies the tools to make sound choices.

We lead a national coalition o organizations that promote economic progress or low-wage workers and

their amilies.

We advance policies and practices to create a nancial system that works or all.

The Center or Economic Progress (CEP) has ree tax sites in over 30 communities throughout Illinois. Each year,

the volunteers at these tax sites help more than 30,000 people le their taxes and get all the tax credits theyveearned and reunds theyre owed. Our ree tax sites are more than a place to get taxes prepared. At most sites,

clients can open bank accounts and learn about ways to save.

Financial Services and Products Oered at Tax Sites

On-site nancial partner (bank or credit union representative, able to open accounts)

Advent prepaid debit cards

US Savings Bonds

FAFSA assistance

Reerrals to year-round nancial coaching or high school seniors

Hello Wallet online nancial management tool

The role o the money management assistant volunteer is to encourage clients to direct deposit and save a portion

o their reunds, and to serve as a resource to both tax site sta and clients.

Why Encourage Savings?

Families experience nancial security when they have more income and assets (items that can be converted into

cash) than expenses and debt. One o the best ways to make progress toward nancial security is to start saving

money.

1. Savings can go toward an emergency und or unexpected events; such as illness, loss o job, and car

repairs.2. Savings can go toward a fnancial goal that could

a. increase a amilys income, such as a higher education degree or certicate, or

b. build a amilys assets, such as a down payment on a house or the creation o a retirement account.

Saving or Emergencies

Reducing debt is key to becoming more nancially secure. Having a saety net (a month and a hals worth o

expenses) allows amilies to take care o lies unexpected emergencies without going urther into debt.


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Example:Imagine that a amilys car breaks down as mom is on her way to drop o Sallie at daycare and then on her

way to work. I public transportation is not an option or getting to and rom work, mom will need to pay to have the car

repaired. I she does not have any money saved, going into debt is her only option. The average interest rate or credit

cards in Illinois is currently 15%. I the amily uses a credit card to pay or the car repairs, they could end up paying an

additional $75* in interest or $500 o car repairs. Over time, interest adds up and slowly erodes a nancially secureuture. Moreover, i the mom cant borrow the money to x the car, she may lose her job.

* This assumes interest only payments with no reduction of principle for a full year.

Saving or Financial Goals

Families and individuals can greatly increase their nancial security by increasing their assets (items o value that can be

converted to cash).

Education. Research shows that having a higher education degree oten translates into earning a higher income.

According to the US Census Bureau, college graduates earn about 55 percent more than people with only a high

school diploma (The Big Payo: Educational Attainment and Synthetic Estimates o Work-Lie Earnings).

When amilies choose to save money or higher education, they are increasing their chances o becoming more

nancially secure. Home ownership. Although real estate prices move in cycles - sometimes up, sometimes down - real estate

values tend to appreciate over time. Equity in a home can also be used to borrow unds during times o crisis.

Having a secure dwelling that increases in value over the long-term contributes to nancial security.

Investments. Oten, low-income amilies do not use CDs (Certicates o Deposit) or Mutual Funds to save

money due to the minimum amount needed or an initial investment. US Savings Bonds can be a great option or

amilies who want to begin saving or the uture.

Tax time is one o the ew times during the year that low-wage workers receive extra money in addition to their

paychecks. These extra dollars (the reund) can be used to save or an emergency or or a nancial goal. Thus, tax time

becomes a great time to talk with clients about what questions or needs they may have in regards to making saving a

reality.


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How Does a Tax Site Operate?


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Roles at the Tax Site

Money Management Assistant

Role:Many o our clients are either unaware or wary o the nancial services CEP oers at our tax sites. Your primary

role as the MMA is to educate our clients on their opportunities and encourage them to save a portion o their reund.

MMAs will be interacting with clients at both the intake and tax preparation stages o the tax site process.

As an MMA, you will be the tax sites expert on nancial products. You will serve as a valuable resource to the site

sta as well as to the volunteer tax preparers. When tax preparers have a question, concern, need assistance, or

just cant remember something related to nancial services, they will call over the MMA to help.

Services:Savings Bonds, Hello Wallet, Advent Debit Card, Savings, Direct Deposit

Tax Preparer

Role:The tax preparers role at the tax site is ocused on providing the great ree tax preparation service our clients

need. Their only responsibilities related to nancial services are to purchase savings bonds or clients and identiy

appropriate clients to reer to the MMA or additional services.

Services:Savings Bonds

Financial Partner

Role:CEPs nancial partners are banks or credit unions dedicated to helping our clients. CEP careully selects

nancial partners who have products that meet the needs o our clients and who are geographically located near

our tax sites. When you identiy clients who would like to open a checking or savings account, direct them to your

sites nancial partner.

Service:Checking or Savings Accounts

FAFSA Preparer

Role:Proper preparation o the FAFSA (Free Application or Federal Student Aid) orm, like a tax return, can be

a tricky process. CEPs FAFSA volunteers have been trained to help a client through that process and ease the

dicult path to securing resources or higher education. Your tax site will either have a member o the ISAC Corps

(Illinois Student Assistance Commission) or a specially trained FAFSA tax preparer volunteer ready to help. Ask your

Site Manager who your FAFSA Preparer(s) will be and direct any clients interested in pursuing higher education to


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Tax Preparation

Tax Preparation

Financial Services Services

Intake QR/Sorting

1. Prep-Use Fields

2. Savings Bonds

MMA FAFSA Financial Partner

1. HelloWallet

2. Advent Cards

3. Savings Bonds

1. FAFSA 1. Checking Accts

2. Savings Accts

Roles at the Tax Site


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MMA Responsibilities

The responsibilities o the money management assistant are to promote savings and direct deposit and to serve as a

resource to both tax site sta and clients.

Beore Site Opens

Talk to site sta and tax preparer volunteers. Talk up the importance o nancial services and products so

volunteers remember that:

o You are available as a resource.

o They should encourage savings and direct deposit to the clients.

Establish rapport with on-site nancial partners.

Intake/ Waiting

Make a general announcement to clients.

o Introduce yoursel and let them know you are a resource i they have questions.

o Explain the services available: FAFSA, Hello Wallet, Bank accounts, Advent Debit Card, Savings Bonds

o Introduce the bank or credit union partner.

Circulate among clientstalk one-on-one with them about saving and direct deposit options.

During Tax Preparation

Tax preparation volunteers will call on the MMA to provide one-on-one help in the ollowing areas:

o Talking with clients about the advantages o direct deposit.

Reer unbanked or under-banked clients to on-site nancial partners.

Explain and enroll interested clients in Advent prepaid debit card.

o Talking with clients about saving a portion o their reund.

Reer clients to nancial partner to open savings account.

Explain the details o savings bonds and ll out Form 8888, Allocation o Reund, to purchase the bond

or the client.

o Reerring students, clients interested in going back to school, or clients with graduating high school seniors to

a FAFSA volunteer or to reerral number.

Remind tax preparation volunteers to record (in TaxWise sotware) the clients participation in nancial services. The

preparer needs to complete the ollowing two preparer-use elds on the Main Inormation Sheet

o #13 I the client has a reund, what amount did they save today on-site (i.e., all or a portion o their reund into

a savings account, bond purchase, or Advent Get It card savings)? I no reund, enter 0.

o #14 Did the client open an account at the site?

1. No

2. Yes, savings

3. Yes, checking

4. Yes, both checking and savings

5. Yes, Advent Get It prepaid debit card


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Promoting Direct Deposit

Advantages o Direct Deposit

Faster. The client can avoid the delay o waiting or a paper check. (see the reund chart)

More secure. Paper check may get lost or stolen.

Cost. There will be no check-

cashing ees.

Risk. By avoiding check-

cashers, the client will not

be exposed to oers or

predatory nancial products.

Saety. It is saer or the

client to have money in thebank or credit union rather

than carry a large amount o

cash.

REFUND CHART

Filing Method Method Reund Approximate Length o

Delivered Time to Receive Reund

e-led Direct deposit 2 weeks

e-led Paper Check 2-4 weeks

Paper return mailed Direct deposit 5-6 weeks

Paper return mailed Paper Check 6-8 weeks

Direct Deposit Options

Bank Accounts

Encourage clients to directly deposit their reunds into a savings or checking account, or both. I clients do not

already have a bank account, reer them to the on-site nancial partner. CEP vets all o our on-site nancial part-

ners with the ollowing criteria.

1. Location in neighborhood

2. Comort and amiliarity with needs o client base.

There should be no minimum balance requirements.

There should be no monthly ees or service charges on accounts.

Branch personnel should work to educate clients on the avoidance o ees or overdrat or ATM use.

Waiver o ees incurred as a result o a lack o understanding should take place i there is no pattern or

history o abuse.

Low cost money orders, bill payment options, and wire transers should be readily available.

3. Willing to overlook ChexSystems history (except or raud). ChexSystems provides banks with inormation

on mishandled checking and savings accounts through a central reporting database (similar to the credit

reporting system).

Prepaid Debit Card

An Advent prepaid debit card is an alternative to traditional accounts or clients who dont qualiy or a bank ac-

count or are hesitant to work with a bank.

Works anywhere MasterCard is accepted.

Cannot be overdrawn due to its prepaid nature.

Can be used to continually load other checks and payroll onto the card.


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Direct Deposit Options*

Challenge Product Options Feature

Credit history problems

Suspicious o nancial

institutions

Needs quick access to

tax reund

Check cashing ees

Savings Account

Advent Prepaid Debit Card


Savings or

Checking Account


Savings or

Checking Account


No credit screening

(no ChexSystems).

Positive usage o a savings

account can build credit.

No bank account required.

Cobranded with MasterCard, so

operates more like a credit card

than bank account.

I return is electronically led, it

only takes about 7-10 days.

Allows deposits and access to

cash without ees.

*First priority is to get an unbanked client over to talk with the on-site nancial partner to see i they have an

account that will meet their needs.

Practice promoting direct deposit

Scenario: The MMA is circulating in the area where clients are waiting to have their taxes prepared. A client, Andy Jackson,

anticipates receiving a large reund this year!

MMA: Hi, Im Sonia and I am a volunteer here at the tax site. Im here to answer any questions you might have about how

to direct deposit your reund or saving a part o your reund. In the past when you have received a tax reund, did you have it

direct deposited or did you receive a check in the mail?

Andy: Usually I received a check. I like having the actual check in my hand.

As the MMA, how would you respond?


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How do I activate an Advent prepaid debit card?

To complete an Advent debit card (the Get It Card) application through the Advent Direct platorm, you must

complete a simple 4 screen process.

1. Screen #1, enter estimated reund amounts or $0.

2. The only disbursement method available will be the Get It Card. Select notication options or the client.

You do not need to enter the card envelope number.

3. On Screen #2, enter key taxpayer inormation (name, address, etc.), as well as record the clients

identication documents. The screen will guide you through the type o acceptable identication

documents and what inormation is required.

4. On Screen #3, review and conrm the previously entered inormation. Note: no ees are charged at a VITA

location.

5. On Screen #4, print the necessary client documents or client signature. The system will print two copies,

one or you and one or the client. Youll then conrm signature and the system will tell you the RTN

(the routing number) and DAN (the deposit account number) to place on the clients tax return to ensure

ulllment. You can also print the account inormation or the tax preparer to enter during tax preparation.

Reund Amounts

& Options

Taxpayer

Inormation & ID

Enter Fees,

Review & Confrm

Print &

Complete

1. . . .


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Page1Re

fundAmounts

&Options

Proprietaryand

Confidential-Adven

tFinancial

5

EnterEstimated

RefundAmount(s)

(notrequiredinVITAsites)

Enter

NotificationsOptio

ns

ChooseDisburseme

nt

Method

Thisisanexampleof

Page#1whentheclient

choosesaGetItCard

fordisbursement.

Notes

ForVITAsites,theGetIt

Cardwillbetheonly

disbursementmethod

available.

-

Iftextandemailare

provided,thentextwill

bethedefault

notificationmethod

used.


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Page2Ta

xpayerInformation&ID

ProprietaryandConfidential-AdventFinancial

6

EnterTaxpayer

Information

EnterTaxpayerI

D

Thisisanexampleof

thePage#2display

whentheclient

choosesaGroupA

Identification(inwhich

onlyoneIDis

required).

Notes

Seepage16foralistof

acceptableGroupAand

GroupBidentifications.


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Page2Ta

xpayerInformation&ID

Proprietaryand

Confidential-AdventFinancial

7

EnterTaxpayer

Information

EnterTaxpayerID#1

Thisisanexampleofthe

Page#2displaywhena

GroupBidentificationis

selectedfrom

thedropdown

list(whichmeanstwo

identificationitemsare

required).

Notes

Seepage16foralistof

acceptableGroupAand

GroupBidentifications.

EnterTaxpayerID#2


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Page3En

terFees&Rev

iew

Proprietaryand

Confidential-Adv

entFinancial

8

MakeSure

Informationis

Accurateand

Complete

Thisisanexampleof

Page#3whenusedby

aVITAornon-profit

preparerwithnotax

preparationorother

fees.


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Page4

Pr

int&Complete

Proprietaryand

Confidential-Adv

entFinancial

9

ChooseDocumentsto

Print

PrintDocsinPDF

ConfirmD

ocuments

Signed

RetrieveRTN/DANand

PutinTaxSoftware

Notes

Theclient-facing

documentswillrenderin

anexternalbrowser

window,

inPDFform.

AdobeAcrobatis

requiredandcanbe

downloadedforfree.

Twocopiesoftheclient

documentswillprint.

CardItineraryischecked

ifGetItCardis

disbursementoption.

TheRTNandDANdisplay

onlyaftertheConfirm

DocumentsSigned

buttonisclicked.

RTN:

9digitnumber

Thesameforallclients

Account:

17digitnumber

10+EFIN

+SSN


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Group A Identifcation

Military ID

City/State/County issued ID

Drivers license

Resident Alien ID

Government passport

Group B Identifcation

Copy o Form 8453 or IRS E-le

Signature Authorization within

the last 10 years, signed by ERO.

Copy o prior year return (within

last 10 years including 1040 PC)

Prior client on le- receipt

Check cashing ID

Current pay stub

Department Store/ Gas

Company credit card

Motor vehicle registration

Social Security Card

Union membership ID

Voter registration card

IRS ITIN or ATIN letter

Employee ID

Food stamp ID

Major Credit card

(Visa, MC, AMX, Discover, Optima)

State welare ID

Indian tribal card

Consular card

Promoting Savings

Our mission is to help our clients move rom fnancial uncertainty to fnancial security. One o the best ways to

make progress toward fnancial security is to start saving money.

Tax time is one o the ew times during the year that low-wage workers receive extra money in addition to their pay-

checks. These extra dollars (i.e., the reund) can be used to save or an emergency und or or a nancial goal (educa-

tion, home ownership, retirement account). Thus tax time becomes a great time to talk with clients about what ques-

tions or needs they may have in regards to making savings a reality.

Clients will need to present one type o identifcation rom Group A, or two types rom Group B


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Savings Options

I the client has Options or saving

Savings account

Checking account only

No checking or savings, some interest

in opening savings account

No checking or savings, no interest in

opening savings account

Direct deposit entire reund into savings

Split a portion o the reund into savings account

Suggest client open savings account with the on-site partner and split

portion o the reund into newly opened account

Put portion o reund ($50 min. purchase, $25 increments) into savings

bond, split remainder into checking

Reer to on-site nancial partner to open savings account, direct deposit

all or portion into newly opened account

Suggest purchasing savings bond(s) ($50 min. purchase, $25 increments),

direct deposit remainder o reund onto Advent prepaid debit card

Saving Options

US Savings Bonds

U.S. Savings Bond(s) can be purchased via the Form 8888, Allocation o Reund.

There is a $50 minimum purchase and bonds are available in $25 increments.

It can take up to 3 weeks or clients to receive their savings bonds in the mail.

Series I bonds grow over a period o 30 years, paying both a xed rate and an infation rate. A savings bond can

be redeemed or principle and accrued interest ater it has been held at least one year.

The client must split the reund in order to buy a savings bond.

o The reund can be divided between a bond purchase and a bank account or between a bond purchase

and a paper check.

o The reund could also be split three ways, between a bond and two bank accounts.

Couple ling a joint return can receive bonds in both names.

In addition to making bond purchases or themselves, taxpayers can now:o make bond purchases and add beneciaries or co-owners; and,

o make bond purchases or someone other than themselves.

Lines 4 6 o Form 8888 are used to purchase bonds. When an entry is made on any o those lines, TaxWise

will automatically complete the routing number and account number.

Interest rate changes twice a year

o On May 1st and November 1st

Bond rate rom Nov 1, 2010 May 1, 2011 is .74% (xed rate o 0%)

o I a client purchased a $100 bond today, that bond would be worth about $107 in ten years and $111 in

15 years.


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Tracking Client Participation

Part o your role is to help our volunteer tax preparers keep track o which services our clients choose to

participate in. Keeping track o this inormation helps CEP evaluate its services and make changes accordingly.

The inormation is also used in aggregate orm to report back to unders.

The preparer use elds o the TaxWise Main Inormation Sheet are used to track how clients use our nancial

services.

There are two questions on the Supplemental Intake sheet that need to be tracked: Question #13 and #14.

Question # 13 - I the client has a reund, what amount did they save today on-site (i.e., all or a portion o

their reund into a savings account, Bond purchase, or Advent Get It card savings)? I no reund, enter 0.

Question # 14 - Did the client open an account at the site?1) No

2) Yes, savings

3) Yes, checking

4) Yes, both checking and savings

5) Yes, Advent Get It prepaid debit card

The tricky part is that the volunteer tax preparer has to remember to go back to the Main Inormation Sheet to

answer questions #13 and 14 ater they have completed the tax return.

Your role is to help tax preparers remember to go back and answer these questions. Hopeully ater a ew

enthusiastic reminders, tax preparers will get into the routine o answering these questions ater the tax return iscomplete.

Site Orientation

Many tax sites have a special orientation or all o the volunteers and nancial partners who will be working at

the tax site. We strongly encourage you to attend your sites orientation to meet your site managers, other

volunteers, and to learn the details regarding all o the nancial services oered at your site.


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This Section For Volunteer Use Only

Supplemental Intake Sheet

Tax Information We need this information so we can prepare your tax return correctly.

General Information We need this information to provide better service to all of our clients.

Your Name:

During 2010

How many jobs did you have? How many jobs did your spouse have?

Are you (or your spouse) in the United States on an F, M, J, or Q Visa? yes no

Did you earn any income that was not reported on a W-2? yes no

Were any o your debts or loans orgiven? yes no

Did you or anyone in your amily attend college or vocational school? yes no

Did you or anyone in your amily adopt a child during the period 2007-2010? yes no

Did you receive a letter rom the IRS? yes no

Is anyone in your household interested in applying or student fnancial aid yes no

(FAFSA) to help pay or college?

How much o your reund would you like to save? $

1) What is your ethnicity? AA (Arican American) AS (Asian/Pacifc Islander) CA (Caucasian)

LA (Latino) NA (Native American) OT (Other)

2) Do you have a bank account? CH (checking) SA (savings) BO (both)

NB (no but would like one) NO (no, not interested)

3) During 2010 were you enrolled at any of the City Colleges of Chicago?

1. Yes 2. No

4) Do you have a retirement savings account (pension, 401(k), IRA, etc) of some kind?

1. Yes 2. No

5) During the past year did you do any of the following? (check all that apply)

1. Paid to have my taxes done

2. Received a rapid reund

3. Paid a ee to cash a check

4. Obtained a payday loan

5. Closed a bank account because the ees were too high

6. Declared Bankruptcy

7. None o these

6) What is your gender? 1. Married couple fling jointly 2. Male 3. Female

7) Please describe your current employment status.

1. Not currently employed

2. Full-time

3. Part-time, 1 job, less than 40 hours per week

4. Part-time, 2 or more jobs but working less than 40 hours per week total

5. Retired

Volunteer use only:

8. Two selected

9. More than two


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Supplemental Intake Sheet

General Information

Center for Economic Progress // Supplemental Intake Sheet // Filing Season 2011

8) Do you want to attend a training class about taxes and recordkeeping for self-employed workers?

1. Yes - Im a child care provider

2. Yes - Im a taxi cab driver

3. Yes - Im a home care aid

4. Yes - Im a hairdresser

5. Yes - Im self-employed doing other work

6. No

9) What was the largest unexpected expense you had during 2010?

1. None

2. Home repair

3. Car repair

4. Medical expense

5. Utility Bills

6. Educational expenses

7. Other

10) What is your current living arrangement?

1. I am in foreclosure or have foreclosed in the last year

2. I own my home and have a mortgage

3. I own my home fully paid off

4. I rent a home or apartment

5. I live with my family

6. I live with someone else

7. I live in a dorm or other group setting

8. I am currently homeless

11) Other than English what language is spoken in your home?

1. None 2. Spanish 3. Chinese 4. Korean

5. French 6. Italian 7. Vietnamese 8. Japanese

9. Polish 10. Russian 11. Other

12) Are you or a member of your household considered disabled?

1. Yes 2. No

This Section For Volunteer Use Only

13) If the client has a refund, what amount did

they save today on-site (i.e., all or a portion

of their refund into a savings account, Bond

purchase, or Advent Get It card savings)?

14) Did the client open an account at the site?

1. No

2. Yes, savings

3. Yes, checking

4. Yes, both checking and savings

5. Yes, Advent Get It prepaid debit card

If no refund, enter 0.

15) How many total W-2s and 1099 Misc forms

does the client have for 2010?


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2011 Money Management Assistant Manual

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Transcript of 2011 Money Management Assistant Manual