June 2018 News Updates

This month's newsletter featured stories such as Save the Children's "End of Childhood" report, a new report by EARN detailing the benefits of using a checking account, and a ProPublica report that outlines Free File and how it can create savings for almost 70% of taxpayers.  

In their recently released End of Childhood report, Save the Children focused on children in rural communities. The report found that in 41 of 47 states with definable rural communities, children faced higher poverty rates in rural areas than in urban areas.

Connecticut is an outlier in this; our rural child poverty rates are the lowest in the country, and the state is one of 6 whose children in urban areas face higher poverty than children in rural areas. 

Read the full article here.

In a new report published by EARN, it was found that those with a savings account were more likely to save than those who used a checking account. 

EARN, which helps working families by helping them save and invest in their future, found that only 32% of their users reported using a savings account, as opposed to 64% who used a checking account. 

EARN also found a "strong correlation between the use of a savings account and success in the SaverLife program." 

Using this data, EARN will "nudge" SaverLife users into linking savings accounts to their checking accounts, hopefully increasing the success of an already tremendous program. 

Read the full report here.

 

A new ProPublica report finds that only 3% of eligible taxpayers use Free File, which serves as a cost-free way for (theoretically) 70% of taxpayers to file their taxes. The reason for this seems to be a lack of awareness, and with IRS having lost their $1.5 million budget in 2015, there are simply not enough resources to effectively spread the word about this program. 

The IRS estimates that because of the limited use of FreeFile, taxpayers could be paying a total of over $1 billion in unnecessary filing fees per year. This makes to potential total savings tremendous, and given its "overwhelmingly positive" consumer feedback according to H&R Block, the Free File program can provide assistance to a significant number of individuals. 

Read the full report here.


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