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Used SETI to Receive Larger Tax Refund and Expand Business

Most people dread filing their taxes, but not Desarae Mace-Runyon.

“By filing my taxes, I’ve been able to invest in my business like never before,” she said.

Deserae runs a childcare service in her Newark, Delaware home. Along with her own children, Cailin, 13, Colleen, 11, and Thomas, 10, she cares for six others. Her husband, Michael, is an automotive technician and helps with the business in the afternoons.

Although Deserae and Michael both work, their combined income is low enough to qualify for the Earned Income Tax Credit, which refunds low-income workers to help them support their families.

Many self-employed entrepreneurs are unaware that they might qualify for the EITC. CFED’s innovative program, the Self-Employment Tax Initiative (SETI), is exploring ways to connect low-income entrepreneurs to the mainstream economy.

Deserae started her business nine years ago but it wasn’t until three years later that she discovered the free tax preparation services at Nehemiah Gateway Community Development Corporation, one of CFED’s SETI partners.

Her friends are always shocked: “You get your taxes done for free?!” Deserae can’t believe it either. “[Before going to Nehemiah Gateway,] no one told me which expenses I could itemize and deduct,” she said.

Now her refund is significant enough that she and her husband plan a business-related house upgrade each year. They have installed new carpet, a new water heater and a play set for the yard. Next, she plans to build a separate daycare entrance and a half-bath.

Deserae was so excited about her refund that first year that she gave her Nehemiah Gateway helper a hug.

“I’m able to do so much more to the house and the business. It’s a huge help.”