Los Angeles VITA Free Tax Preparation Access
United Way of Greater Los Angeles / RAND Corporation · Los Angeles, CA, USA · 2018
Summary
The Los Angeles VITA experiment demonstrated that proximity and scheduling, not awareness, were the binding constraints on free tax preparation take-up. The three-arm design allowed clean comparison: information alone had a moderate effect, but eliminating travel and wait time through neighborhood siting and pre-scheduled appointments produced a 44 percentage point increase in VITA use. For households newly accessing VITA, the average additional refund — primarily from previously unclaimed EITC — was $340. This is a rare experiment where the intervention effectively converted foregone income into received income, with the 'price' being convenience rather than cost.
Research question
"Does reducing the cost of accessing free tax preparation (VITA) increase EITC take-up and filing rates among eligible low-income households?"
Methodology
Intervention
Households in low-income ZIP codes randomized to receive: (a) information about nearest VITA site, (b) information plus scheduled appointment, or (c) information plus mobile VITA site in their neighborhood; control received no targeted outreach
Assignment
Randomized controlled trial (ZIP code cluster)
Sample size
4,200 households across 30 ZIP codes
Primary outcome
VITA utilization rate; EITC claim rate; tax refund amount received
Effect estimate
VITA use: +12 pp (info only), +31 pp (scheduled appointment), +44 pp (neighborhood site); EITC claims: +8 pp for neighborhood site arm; average refund received: +$340 among newly filing households
Decision
United Way expanded mobile VITA sites; appointment scheduling integrated into all LA VITA sites; IRS incorporated appointment model into national VITA guidance
Result
Positive
VITA use: +12 pp (info only), +31 pp (scheduled appointment), +44 pp (neighborhood site); EITC claims: +8 pp for neighborhood site arm; average refund received: +$340 among newly filing households
Evidence strength
Strong
Randomized controlled trial with large sample.
Replication status
Partially replicated
Institution
United Way of Greater Los Angeles / RAND Corporation
Location
Los Angeles, CA, USA
Year
2018
Policy area
Administrative Process
Mechanism
Simplification