Tax Season and Financial Preparedness: Resources from the FDIC
Tax season is here, and the FDIC is highlighting resources to help consumers navigate this important time. This includes strategies for getting organized, filing returns, and understanding valuable credits like the Earned Income Tax Credit (EITC). Planning how to use your refund wisely through savings, debt repayment, or investments is also key. The FDIC emphasizes the importance of vigilance against scams and identity theft.
In recognition of Identity Theft Awareness Week (January 27 – January 31, 2025), the FDIC is promoting the ways Money Smart resources can help protect your finances.
Money Smart’s Role in Financial Safety
Tax identity theft occurs when someone uses your personal information to file a fraudulent return and steal your refund. Scammers may also impersonate the IRS to collect sensitive information. To combat this, Money Smart offers free tools for money management and protecting personal information. Organizations, educators, and community leaders can use these resources to teach others how to make informed financial decisions.
Specifically, the following Money Smart for Adults modules are especially helpful:
- Module 1: Your Money Values and Influences: Learn to identify financial goals and prioritize them, helping to safeguard your financial future.
- Module 11: Protecting Your Identity and Other Assets: Focuses on recognizing scams, protecting personal information, and recovering from identity theft. It provides practical steps to prevent tax identity theft, such as:
- Filing your tax return early.
- Knowing the official IRS communication channels.
- Using secure online platforms.
FDIC’s “How Money Smart Are You? – Protecting Your Identity and Other Assets” is also a helpful tool.
Success Story: Haven Neighborhood Services
Erika Toriz-Kurkjian, Founder and CEO of Haven Neighborhood Services, a nonprofit financial and housing counseling organization in Los Angeles and a Money Smart Alliance member, shared insights on how they utilize the Money Smart program:
Haven Neighborhood Services tailors Money Smart content to fit the specific needs and demographics of their community. For instance, they adapt Spanish-language materials to better serve Spanish-speaking clients. The free and ready-to-use Money Smart curriculum and resources enable them to quickly build out their financial education programming.
A recent Financial Freedom Fair, which offered free tax preparation via their VITA program, financial counseling, and Money Smart workshops, saw over 150 participants. The workshops focused on topics like credit planning, homeownership, and disaster recovery, with an emphasis on Module 11. Toriz-Kurkjian noted that many families in their community are victims of scams and predatory lending.
The fair led to a series of homeownership workshops in partnership with a local bank. The Money Smart module on buying a home [Module 13], highlighting the steps in homeownership, proved impactful and valuable to clients.
The VITA program connects clients with essential financial education resources, with a primary focus on the Money Smart credit module. Addressing credit health early is key to financial stability and long-term goals. Haven Neighborhood Services reports that VITA is a great marketing time to promote programs and services with clients, enabling them to make informed decisions.
Upcoming Events and Resources
The FDIC will host two webinars in January to support organizations in preparing for tax season:
- January 22: FDIC Hosts National Webinar – Tax Time & EITC: Bankable Moments & Resources for Banks and Consumers
- January 29: FDIC Programs and Resources to Help Consumers Build Savings During Tax Season
The January 2025 edition of FDIC Consumer News emphasizes the importance of saving for unexpected expenses and future goals.
Tips and Techniques
- Take advantage of free assistance from IRS-certified Volunteer Income Tax Assistance (VITA) sites starting January 27, 2025.
- Protect your money by using an FDIC-insured account for secure and free direct deposit of your tax refund.
- For consumer resources, visit FDIC.gov or the FDIC Knowledge Center.
- You can also call the FDIC toll-free at 1-877-ASK-FDIC (1-877-275-3342).
