Dear Honorable Conferees,
Thank you for the opportunity to submit a letter regarding the reconciliation of H.5501 and S.3100, An Act making appropriations for the fiscal year 2027.
On behalf of the Healthy Families Tax Credits Coalition, we urge the Conference Committee to adopt the House budget language in line item 1201-0100, which designates $1,500,000 to support the Volunteer Income Tax Assistance (VITA) program. This allocation assures that funding is directed to VITA, the community-based resource that helps families, workers, and older adults across every district in the Commonwealth file taxes for free. VITA is essential in helping families comply with their obligation to file income taxes, as well as access evidence-based tax credits like the Earned Income Tax Credit (EITC) and Child and Family Tax Credit (CFTC), both recently expanded by the Legislature last session. It is also essential to accessing the federal EITC and Child Tax Credit, which deliver millions of federal dollars to the Commonwealth.
The Healthy Families Tax Credits Coalition is a statewide nonpartisan network working to improve the health and well-being of Massachusetts families by increasing and expanding access to the state Earned Income Tax Credit and Child and Family Tax Credit. Our 80-plus member coalition, led by Children’s HealthWatch at Boston Medical Center, includes community-based organizations, direct service agencies, health providers and health care institutions, legal advocates, and most importantly – Massachusetts workers and their families. In addition to advocating to strengthen state family tax credits, our coalition focuses on implementation to ensure Massachusetts families are aware of and able to claim the credits for which they are already eligible. Delivering the full impact of these credits depends on sustained support for VITA, a community-based free tax preparation program that connects families to these evidence-based credits.
VITA: An Essential Resource Serving all Massachusetts Districts
The Volunteer Income Tax Assistance (VITA) program provides free, high-quality tax preparation services to Massachusetts residents earning $69,000 or less annually. With 88 sites across the state, IRS-trained volunteers help residents file their taxes for free, including older adults, those with limited English proficiency, and people living with disabilities. Importantly, VITA volunteers are trained specifically to help residents claim refundable tax credits, like the EITC and CFTC—two evidence-based tools that put cash back into pockets, advancing economic stability and improving health outcomes. This is critical, as we know approximately 20% of those eligible do not claim the EITC1, leaving hundreds, if not thousands of dollars on the table each year. Take up of the new CFTC is likely even lower, as more families who do not have a tax filing obligation are eligible.
With a 97% accuracy rate2, VITA helps residents meet their tax filing obligation and claim the full value of tax credits they are entitled to, without the burden of costly fees. This is in stark contrast to the unregulated, for-profit tax preparation industry. The US Government Accountability Office estimates that 60% of returns filed by paid preparers contain inaccuracies3, despite fees that can range from $80 to $400 or more. For families already under financial strain, these tax preparation fees can significantly reduce a household’s refund.
VITA offers a high-quality alternative, providing free, trustworthy, and accurate services to eligible residents at 88 sites across the state. Sites are often accessibly co-located at community-based organizations and institutions, such as libraries, community action sites, and health care clinics, and volunteers are often from the communities they serve. Beyond the important role that VITA plays in helping low- and moderate-income households accurately file their taxes, VITA also offers financial education and connects low-income taxpayers to other critical safety net services, strengthening families and the local economy.
A majority of VITA sites in Massachusetts are coordinated by two state networks: the Boston Tax Help Coalition and MASSCAP. Together, this past tax season, VITA volunteers across these two networks filed more than 21,000 tax returns, returning more than $40M* in tax refunds and tax credits, and saving residents across Massachusetts more than $6M in tax filing fees.
VITA draws federal dollars into Massachusetts
State investment in VITA delivers an exceptionally high return on investment (60:1),** making the program a fiscally smart strategy, especially in tight budget years. By helping residents access federal tax credits such as the EITC and Child Tax Credit, VITA leverages modest state funding to draw significant federal dollars into the state economy, multiplying the impact of state investment. ligible families could claim up to $8,046 in federal EITC (average credit of $2,491 among Massachusetts households) and up to $2,200 for each child under the age of 17. In 2025, Massachusetts families received $876.2 million in federal EITC4. State investment in VITA helps bring these federal dollars back into our communities, stimulating economic activity and supporting financial stability at a time when resources are strained.
Continued cuts to VITA harm families, local economy
State investment in VITA is critical to maintain site supervision and hours, allowing more families to access its services and state and federal credits. In recognition of this, Massachusetts has invested in VITA since FY2019. However, since FY24, state funding for VITA has been reduced by two-thirds. This reduces the hours sites can operate and in some circumstances forces sites to close outright. For example, following line item cuts in the last budget, Boston Tax Help Coalition sites filed approximately 450 fewer returns and MASSCAP sites filed approximately 1,000 fewer returns, significantly reducing the amount of tax refund dollars returned to the community.
Investing in VITA is a fiscally smart strategy
We thank the House for restoring funding in this essential program and allocating $1.5M to VITA. Investing in services that connect families across the Commonwealth to existing resources that support their health and financial stability is urgent, especially amid rising costs and ongoing economic uncertainty. VITA does just that, delivering a significant return on investment and responding to growing demand for quality free tax assistance. Including the House language in line item 1201-0100 is a practical, no-cost opportunity to deliver tax benefits to families across Massachusetts.
On behalf of more than 80 community organizations, healthcare providers, researchers, and legal advocates across the state, we urge the Conference Committee to adopt in its final FY2027 budget the House language allocating $1,500,000 to protect this high-return investment for families and communities across Massachusetts.
Sincerely,
The Healthy Families Tax Credits Coalition