Pertinent Perils

Each year, approximately 20 million self-employed business owners file taxes – two million of them for the first time. Nearly one-quarter of these 20 million self-employed tax filers are eligible and qualify for the Earned Income Tax Credit, making the EITC an approximately $6.5 billion tax credit for low-income businesses. But to take advantage of this easy method to build assets for their businesses, they need easily available guidance and tax preparation assistance.

CFED wants to help more of them. Founded thirty years ago, CFED supports micro-enterprise for job growth in low-income communities. Through a network of local nonprofit organizations, CFED delivers tax preparation and business development services to entrepreneurs in disadvantaged communities. These entrepreneurs are childcare providers, food vendors, landscapers and other workers who seek to advance their dreams through business ownership. Access to entrepreneurial support is particularly important as more and more Americans are becoming self-employed in this difficult economy.

CFED and its partners have saved entrepreneurs close to $6 million in tax preparation fees, and nearly half (48%) of these clients qualified for and received the Earned Income Tax Credit, providing them over $13.5 million in additional capital. CFED is a finalist for a million dollar grant from Sam’s Club which, if awarded, could allow CFED to help an additional 25,000 low-income self-employed businesses save $10 million in tax preparation fees and help 50,000 to 100,000 others with free online tax and business services. If you are a Sam’s Club member and would like to vote for CFED to win this grant, please click here.