Study Examines Links Between Tax Returns and Asset Building Strategies in Native Communities

With support from the Annie E. Casey Foundation, the Kathryn M. Buder Center for American Indian Studies and the Center for Social Development engaged 14 Native community organizations currently providing free tax preparation to examine the uptake and potential uses of Earned Income Tax Credit (EITC) dollars by Native people.

In the 14 Native sites participating in the study, more than $7,500,000 was returned via tax returns ($3,500,000 total EITC claimed). Community surveys showed that 68 percent of survey respondents have bank accounts and 12 percent of those who do not currently have accounts would like to open one. Many of the tax filers planned to use their refunds for personal expenses, often citing emergencies and catching up on bills as primary uses. Sixteen percent indicated that they plan to deposit their tax return in a savings account while others plan to use the refund to help family members or to obtain necessary household items such as vehicles and furniture. Survey participants expressed strong interest in getting information about matched savings accounts, homeownership, and financial management education; particularly credit counseling. These findings provide insight into community infrastructure and programs that help dollars stay in a community and help citizens leverage their financial resources. Click here to read a research brief or to read the full report