Credit Unions Step Up As Tax Time Heroes

Tax season is just around the corner, and two low-income credit unions are gearing up their tax-preparation services.

It’s tax season, and for millions of Americans, this time of year can represent a financial lifeline. Refunds often provide much-needed breathing room or even set the stage for long-term financial progress.

As a financial resource for their communities, credit unions are positioned to help those in the most need file with confidence. Whether partnering with an outside organization or upskilling employees to become preparers, introducing tax preparation services can be a huge draw for new and existing members alike.

Tax Preparation Services For The Community

Jerry Manor, Business Development Manager, SeaComm FCU.

SeaComm Federal Credit Union ($787.1M, Massena, NY) has used tax season as an opportunity to connect with its community for more than a decade.

“I think it was 14 years ago we got a call from the Internal Revenue Service,” says Jerry Manor, SeaComm’s business development manager. “Anytime you get a call from the IRS, it kind of makes you sit up.”

In this case, however, the representative wanted to know if SeaComm would participate in a new program where community partners set aside a day to help people complete their taxes free of charge. Today, Super Saturday is a highly anticipated annual service within the community — Manor says he was fielding questions about 2025 well before the new year began.

What started as one-day offering at one branch now spans three Saturdays in February and one in March across multiple branches in the area. Manor says this is made possible through partnerships with AARP and the Volunteer Income Tax Assistance (VITA) program.

“Sometimes we even have to schedule two events at different branches on the same day,” he adds.

SeaComm offers service by appointment only for members as well as non-members. Manor says the tax returns are typically simple to complete, with preparers getting people in and out in approximately 20 minutes.

CU QUICK FACTS

SEACOMM FEDERAL CREDIT UNION

HQ: Massena, NY
ASSETS: $787.1M
MEMBERS: 55,187
BRANCHES: 9
EMPLOYEES: 128
NET WORTH: 15.0%
ROA: 0.89%

“I can’t prove this, but I think we’ve gained members by offering this service because we get them in the lobby,” he says. “I attend as many as I can so I can talk to non-members and describe what SeaComm does and why we’re a good choice for financial services.”

If a person needs an account for a direct deposit refund, employees work with them to open an account. But at the end of the day, serving its community is just as important to SeaComm as serving its balance sheet. Manor says his favorite example of the impact the credit union can make is that of a young man who visited an outlying branch for tax preparation. He walked out of the preparer’s office “unbelievably happy.” When Manor asked him why, the man explained it had cost him nearly $500 to prepare his taxes the year before — the credit union did it for him for free.

“It’s savings for people who really can’t afford to pay that money,” Manor says. “This is what we believe in, and you have to demonstrate what you believe in.”

Now entering the credit union’s 15th year of Super Saturdays, Manor says the biggest challenge is gathering enough volunteers to serve as preparers, which it does primarily through community partnerships.

Tax Preparation Services For The Members

Stacey Deitering, CFO, Superior Credit Union.

After six years of offering tax-preparation services through partnerships, Superior Credit Union ($1.8B, Lima, OH) brought the offering entirely in-house in 2016.

“It’s definitely a service that’s in demand,” says Stacey Deitering, Superior’s chief financial officer. “Our area in particular does not have a lot of places that do this for free — we have run out of slots every year,”

Last year, the credit union completed 689 tax returns and saved members an estimated $140,000 in preparation fees.

Deitering says the program has evolved substantially over the years, especially during the COVID-19 pandemic. Whereas members used to sit down in-person with branch employees, today the credit union prepares taxes via a drop-off service.

“Typically, we ask them to drop it off on a Friday,” she says. “By the following Friday we’ll have it done as long as we don’t run into any problems or questions.”

The credit union also has shifted its initial screening process from the phone to online. Superior screens to ensure the tax filer is a member whose annual income is less $65,000 and who doesn’t have certain tax circumstances the credit union cannot assist with. In addition to providing a first line of defense for screening, the shift to online has helped the credit union better manage the number of queries it receives.

“You could come in and have 400 voicemails in the morning from people who want their taxes done,” Deitering says. “Even if you have a three- or four-person team that does nothing but scheduling, they can’t keep up”

CU QUICK FACTS

SUPERIOR CREDIT UNION

HQ: Lima, OH
ASSETS: $1.8M
MEMBERS: 102,249
BRANCHES: 27
EMPLOYEES: 249
NET WORTH: 13.8%
ROA: 1.25%

About a dozen Superior branches will offer tax-prep services this year, although locations change each year based on the number of employees who volunteer to be preparers.

“Most employees do it year after year,” Deitering says. “I think this year we have eight new employees who are interested, which brings us up to 27 employees who volunteer to do the tax return program. A lot of people are just interested in learning more about it and like to help the members. It’s a rewarding thing.”

Superior Credit Union considers tax-preparation services an opportunity to offer additional value to members. For any program like this, Deitering says, it’s important to start small and remember members will appreciate it.

“It’s so special to them to have it done for free when somewhere else could be two or three hundred dollars just for a simple tax return,” she says. “I think some members get to a place where they almost don’t file a tax return because they can’t afford to. They want to do the right thing, but there are a lot of circumstances where members are really struggling financially.”

January 13, 2025
CreditUnions.com
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