Tax Season and FDIC’s Money Smart Program
Tax season is here, and the FDIC is providing resources to help individuals and families navigate this important time of year. This year, the FDIC is emphasizing the importance of financial preparedness, including strategies to protect against fraud and maximize potential benefits like the Earned Income Tax Credit (EITC).
Understanding the Importance of Financial Planning
Tax season is a pivotal time to get organized, file returns, and assess eligibility for tax credits. It’s also an opportunity to thoughtfully plan how to use any tax refunds to achieve financial goals like saving, paying down debt, or investing. Simultaneously, protecting against scams and identity theft remains crucial. In recognition of Identity Theft Awareness Week, the FDIC is promoting its Money Smart resources to help individuals safeguard their finances.
How Money Smart Can Help
Tax identity theft, where criminals use personal information to file fraudulent returns and steal refunds, is a real threat. Scammers may even impersonate the IRS to obtain sensitive data. To address these risks, Money Smart offers free tools to manage money effectively and protect personal data. The program provides resources organizations, educators, and community leaders can use to teach others how to make sound financial decisions. Key modules for tax season include:
- Module 1: Your Money Values and Influences: Helps individuals identify and prioritize financial goals.
- Module 11: Protecting Your Identity and Other Assets: Focuses on recognizing scams and protecting against identity theft, including steps to prevent tax identity theft, such as filing early and using secure online platforms.
To further aid consumers, the FDIC provides tools and educational materials, including the “How Money Smart Are You? – Protecting Your Identity and Other Assets” guide.
Success Story: Haven Neighborhood Services
Erika Toriz-Kurkjian, Founder and Chief Executive Officer of Haven Neighborhood Services, a nonprofit financial and housing counseling organization and a Money Smart Alliance member, shared how they use the program:
We tailor Money Smart content to fit the specific needs and demographics of our community…The free and ready-to-use Money Smart curriculum and resources has allowed us to quickly build out our financial education programming without having to develop everything from scratch.
Haven Neighborhood Services recently held a Financial Freedom Fair with over 150 participants attending. The fair offered free tax preparation through their VITA program, financial counseling, and workshops built around Money Smart modules. The organization focused on topics such as credit planning, homeownership, and disaster recovery, including Module 11, in addressing the prevalent issue of scams and predatory lending within their community.
The fair led us to do a series of homeownership workshops…We found the Money Smart module [Module 13: Buying a Home], which highlights the steps of homeownership, to be particularly impactful and well-received by clients who are interested in buying a home but feel uncertain about the process.
The VITA program provided a gateway to connect clients with broader financial education. Through this initiative, individuals are connected to Money Smart workshops, with a particular emphasis on credit management to lay the groundwork for financial stability and long-term goals.
Upcoming Resources and Initiatives
The FDIC is hosting two webinars in January:
- January 22: Webinar to prepare organizations for tax time.
- January 29: FDIC Programs and Resources to Help Consumers Build Savings During Tax Season
Recent FDIC Consumer News
The January 2025 edition of FDIC Consumer News emphasizes the importance of saving for unexpected expenses and future goals. The full article is available on FDIC.gov.
Tips and Techniques
Take advantage of free assistance from IRS-certified Volunteer Income Tax Assistance (VITA) sites. Secure your money by using an FDIC-insured account for direct deposit of your tax refund. For more 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). Please send your story ideas or comments to [email protected].
