Tax season can provide a financial lifeline to lower-income employees who qualify for valuable tax credits that may lead to a tax refund – but the IRS reports that 1 in 5 miss out on thousands of dollars each year. Employers that think beyond traditional financial wellness approaches and provide comprehensive financial benefits that include tax-related support can make a significant impact on employees’ financial lives. Here’s why.
1. Help them put money in back in their pocket
Taxpayers with an adjusted gross income of earned wages up to $59,899 for single filers and up to $66,819 for married couples filing jointly may qualify for the Earned Income Tax Credit (EITC), based on their number of dependent children, along with other credits related to caregiving, saving, and education costs.
Yet, the IRS estimates that more than 140 million workers miss out on receiving this money because they don’t claim the credits and/or or don’t file a tax return. Brightside Financial Assistants help employees understand tax credits they may be eligible to claim and access trustworthy free and/or low-cost tax preparation and filing resources.
2. Judgment-free support makes it easier to take action
Employees need to gather different types of tax-related paperwork based on their unique financial situation before they are ready to file taxes, but understanding what those are and who will provide them can be confusing and overwhelming.
Brightside Financial Assistants work one-on-one with employees and meet them where they are to make it easier to take the steps needed to file their tax return, including identifying the tax-related documents they have received and which they may still need to gather.
3. Those with a tax bill need affordable options
Employees who end up with a tax bill may need support understanding their different options to handle it, so they don’t fall prey to predatory financial products or avoid paying the bill entirely due to a lack of affordable options, which can lead to even more financial headaches.
In addition to providing this type of support, Financial Assistants also work with employees to identify where and how they may need to make adjustments to paperwork they have on file with their employer, to reduce the likelihood that they’ll face a significant tax bill in the future.
4. Help them make the most of a tax refund
A tax refund can feel like a huge financial windfall for many employees, but without the right support, it can disappear quickly. Brightside Financial Assistants work with employees to ensure they are equipped to receive their refund while avoiding predatory tax refund advances and fees. They also help employees make the most of their tax refund based on their unique financial priorities and goals, whether that’s managing debt, building emergency savings, or funding a future vacation.
5. Address other sources of financial stress
Employees who struggle with taxes may also face broader financial challenges, including living paycheck to paycheck, struggling with debt, and/or a low credit score. Benefits that support employees during tax season may encourage those who wouldn’t typically engage with a financial benefit to be willing to share and accept help for other financial challenges, so they can improve their financial health.
Click here to learn more about how Brightside Financial Care can support your frontline employees unique financial needs and deliver meaningful ROI for your organization.
