New tax time initiative makes saving easier

This fall, President Obama announced an important change to tax returns that will make saving easier, particularly for new savers. As of this upcoming tax season, filers who receive a refund will be able to purchase U.S. Savings Bonds with part of their refund money simply by checking a box on their return.

 
Tax refunds are often the single biggest cash infusion of the year for low-wealth families, especially for those who qualify for the Earned Income Tax Credit (EITC). This means that refunds are a great opportunity for building assets. While research shows that EITC refunds are often used to pay off debts, the U.S. Savings Bond initiative could encourage saving at tax time—when low-wealth families often have the most to save. Savings Bonds also have many characteristics that make them attractive to first-time savers: a low minimum purchase of $50, no credit check, no fees or charges, the security of government backing, and protection against inflation.

Click here to find out more information on the U.S. Savings Bond initiative. The Doorways to Dream (D2D) Fund is hosting webinars Friday December 11 and Friday January 8 at 1:00pm to discuss the new policy, as well as strategies for encouraging use of the program.