Tax Time Savings
Each tax season, over $100 billion dollars in tax refunds goes to households making $50,000 or less. For many this is the largest check they will receive all year – much larger than their typical paycheck. With this large amount of cash comes a unique opportunity to save. Meeting people with a product that fits their lives -- at a time they are able to save --- is the core element of our tax time saving efforts.
D2D’s advocacy work paved the way for Americans to be able to save some of their refund money with IRS Form 8888, the split refunds form, being added to the tax process. This form allows filers to easily save a portion of their refund when they file their taxes. As a result, thousands of Americans have been able to save millions of dollars during tax time.
U.S Savings bonds are another important tool for people to begin saving at tax time. Bonds are easy to access at tax time with form 8888. They are reputable, low risk, can be purchased for small amounts, and are easy to give as a gift. U.S. Savings Bonds have been purchased over 160,000 times through form 8888, resulting in more than $80 million in savings for tax filers and their loved ones. However, their existence is in jeopardy as the U.S Treasury has only guaranteed to continue access at tax time through the 2016 tax season. D2D is leading an effort with the Savings Bond Working Group to advocate for the continuation of this important savings tool. We are also supporting efforts in Congress, including the introduction of SAVINGS act legislation.
The SaveYourRefund national promotion is another D2D initiative to encourage people to save at tax time. Borrowing elements from Prize-Linked Savings, SaveYourRefund makes saving fun and exciting by offering cash prizes for tax filers who save using form 8888. Americans have saved over $5 million dollars and won $100,000 in prize since the promotion started in 2013.
Tax Time Action Items
- Saving Bond Working Group
- Learn more and enter SaveYourRefund!
- Spread the Word!
- Follow the campaign on Twitter or Facebook
Tax Time Savings publications
- Policy Brief: Tax-Time Savings Bonds
- Keep Bonds Easy
- 2012 Savings Bond Report
- 2011 Savings Bond Report
- Disrupting the Poverty Cycle: Emerging Practices to Achieve Economic Mobility
- Everyone Can Save: Building Savings One Bond at a Time
- Yes We Can: Inclusive Saving at Tax Time
- Returning to American Thrift
- Tax Time Savings: Testing US Savings Bonds at H&R Block Tax Sites
- America's Best Kept Saving Secret: Testing U.S. Savings Bonds To Help Low-Income Tax Filers Begin Saving
- Further Research on U.S. Savings Bonds; Request for Proposal from VITA Sites
- Promise and Potential of U.S. Savings Bonds
- Building Savings at Tax Time: A Guide to Split-Refunds
- Reinventing Savings Bonds
- Leveraging Tax Refunds to Encourage Savings
- An Evaluation of Tax-Refund Splitting as an Asset-Buliding Tool for Low-to-Middle Income Individuals
Tax Time Savings Updates
- D2D Announces Grand Prize SaveYourRefund Winner!
- US Savings Bonds Gain Attention During Treasury Secretary Confirmation Process
- SaveYourRefund Announces First $250 Winners!
Tax Time Savings main contact: Joanna Smith-Ramani