Colgate University students are expected to help more than 200 low-income families save thousands of dollars this year by providing free tax preparation services.

The 25 economics students are part of a Volunteer Income Tax Assistance (VITA) program that was launched last year by university faculty working with Madison County’s Department of Social Services and the Community Action Program.  It is the first student-staffed program in the state, and it is overseen by the Internal Revenue Service.

As of March 9, the students had provided 121 free tax returns. The refunds averaged $2,700 per family, 60 percent of which represent earned income credits, for a total of $318,000 refunded in Madison County. One recent refund topped $7,400.

The earned income credits can substantially increase the refunds some families receive. But many low-income families don’t realize they are eligible or can’t afford the assistance necessary to complete the complex forms.

With the students’ assistance, the money that area families save through the higher refunds is expected to reach $500,000 by April 15, the tax filing deadline.  That would be a significant increase from last year, when about 125 families assisted by Colgate students saved an estimated $250,000.

Professors in the economics department select the student volunteers, who have passed a qualification test administered by the IRS. 

The students meet with families at the social services offices in Wampsville or at the CAP offices in Morrisville. During the appointments, which are set up through CAP, families also are asked if they would like to receive assistance in filing a food stamp program application.

Tax returns done through the program, which started Jan. 23, are filed electronically and refunds are deposited into checking accounts in seven to 10 days. 

The program was initiated by Jill Tiefenthaler, Colgate associate dean and associate professor of economics, and is directed by assistant professor Nicole Simpson.

Tiefenthaler is one of about 40 faculty members involved in Colgate's Upstate Institute. Beginning in the fall, she will become director of the institute, which serves as a resource for organizations and individuals in upstate New York and as an outlet for faculty with a regional expertise.