VITA Tax Program: What Small Businesses Need to Know

In 2022, nearly 9,000 Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) sites prepared more than 2.2 million tax returns. Every year, these programs provide free tax help to eligible individuals.

For small businesses, understanding VITA tax basics and providing information is important. Your employees may rely on this program for accurate returns and support during tax season. Less stress means more productivity in the long run. In this VITA tax guide, we’ll cover what the program does and what small businesses need to know about the process.

What is VITA Tax, and How Does the Program Work?

VITA is a federal program sponsored by the IRS. It provides free tax help to people who earn $64,000 or less. The program also serves persons with disabilities and individuals with limited English proficiency. The service relies on trained volunteers to prepare basic tax returns and file them electronically.

VITA helps individuals claim eligible credits and receive refunds faster. The program's volunteers are IRS-certified and receive annual training to stay up to date on the latest tax laws. It's a reliable and accessible option for people who might otherwise struggle to afford professional tax help.

For businesses, understanding the VITA tax program provides leaders with valuable insight into the resources available to employees during tax season. Awareness of these programs helps workplaces stay prepared and informed.

The VITA Tax Program Across States

Although VITA is an IRS-managed program, its availability and scope can vary by state. Some states have extensive networks of community partners and nonprofit organizations that host VITA sites. Others may have fewer resources, which can limit access for eligible taxpayers. Here are some examples:

• Earned Income Tax Credit (EITC) States: In states with a state-level EITC, VITA volunteers are trained to assist individuals in claiming both federal and state credits, thereby maximizing potential refunds.

• Immigrant and Multilingual Communities: VITA sites in areas with higher immigrant populations often prioritize multilingual assistance to ensure residents with limited English proficiency receive accurate support.

• Rural Areas: Rural states may have fewer and more dispersed VITA sites. This means scheduling and outreach are critical to ensure access for eligible taxpayers.

If your business operates across multiple states, keep these differences in mind. Sharing state-specific information can help your employees make the most of local resources. It can increase the overall value of your benefits communication.

How the VITA Tax Program Impacts Small Businesses and Employees

While small businesses don’t use VITA to file company returns, your employees may rely on the program. Having access to tax help can reduce their financial stress, boosting morale and fostering a more positive company culture. Tax season can create anxiety for many employees, but pointing them toward the VITA tax help program can minimize that burden.

Employees may discover credits and deductions that increase their take-home pay. Sharing resources like the VITA tax program demonstrates that you care about employee well-being, which is a sign of a strong employee retention strategy and makes your organization more attractive to prospective hires.

How to Access VITA Tax Benefits

The VITA program doesn’t require a formal application. Employees need to ensure they qualify and find a location via the IRS website. Before visiting a VITA site, employees should gather the required paperwork, such as:

• Proof of identification, like a driver’s license or passport

• Social Security cards or ITINs for all household members included on the return

• Wage and earning statements (Form W-2, Form 1099, or self-employment records)

• Bank account and routing numbers for direct deposit

• Last year’s tax return, if available, to help volunteers verify information

Some sites allow employees to securely submit documents online and receive remote assistance, which is helpful for those with limited transportation or conflicting work schedules. As the employer, you can support them by sharing the IRS VITA locator and other IRS resources. Try posting helpful materials during tax season or sending reminders about important deadlines.

Supporting Employees Year-Round With Justworks

Understanding VITA tax resources helps employees complete their taxes efficiently. It can reduce their overall financial stress. This tax support allows them to stay focused and productive at work. The right tools at work can help you keep track of tax deadlines and timely reminders.

Justworks provides expert guidance every step of the way. You can assist employees year-round by streamlining payroll, offering access to high-quality benefits, and leveraging Human Resources (HR) tools to maintain efficient workflows and strong employee support. Get started with Justworks today.