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Tax-Time Savings among Low-Income Households in the $aveNYC Program

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  • Clinton Key
  • Jenna N. Tucker
  • Michal Grinstein-Weiss
  • Krista Comer

Abstract

type="main" xml:id="joca12070-abs-0001"> This article explores savings outcomes for participants in the $aveNYC tax-time matched savings program compared with a group of New York City tax filers who were not offered the program. $aveNYC was administered at Volunteer Income Tax Assistance sites during the 2008–2010 tax seasons. The program offered taxpayers the opportunity to open a savings account with their tax refund and receive a 50% match on their initial deposit. The study's primary outcome is savings held by respondents 6–11 months after receipt of matching funds. We compare participants in the 2009 program cohort to a comparison group on the following outcomes: level of savings, having nonzero savings, and having enough savings to cover one or two months of expenses at current consumption levels. We find significant differences on savings levels, the presence of any savings, and the likelihood of having savings to meet one month's expenses.

Suggested Citation

  • Clinton Key & Jenna N. Tucker & Michal Grinstein-Weiss & Krista Comer, 2015. "Tax-Time Savings among Low-Income Households in the $aveNYC Program," Journal of Consumer Affairs, Wiley Blackwell, vol. 49(3), pages 489-518, November.
    • Handle: RePEc:bla:jconsa:v:49:y:2015:i:3:p:489-518
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    1. Michal Grinstein-Weiss & Blair D. Russell & William G. Gale & Clinton Key & Dan Ariely, 2017. "Behavioral Interventions to Increase Tax-Time Saving: Evidence from a National Randomized Trial," Journal of Consumer Affairs, Wiley Blackwell, vol. 51(1), pages 3-26, March.
    2. Mathieu R. Despard & Michal Grinstein-Weiss & Chunhui Ren & Shenyang Guo & Ramesh Raghavan, 2017. "Effects of a Tax-Time Savings Intervention on Use of Alternative Financial Services among Lower-Income Households," Journal of Consumer Affairs, Wiley Blackwell, vol. 51(2), pages 355-379, July.
    3. Nilton Porto & J. Michael Collins, 2017. "The Role of Refund Expectations in Savings: Evidence from Volunteer Income Tax Preparation Programs in the United States," Journal of Consumer Affairs, Wiley Blackwell, vol. 51(1), pages 183-199, March.
    4. Mathieu R. Despard & Terri Friedline & Stacia Martin-West, 2020. "Why Do Households Lack Emergency Savings? The Role of Financial Capability," Journal of Family and Economic Issues, Springer, vol. 41(3), pages 542-557, September.

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