With tax season comes appointments with preparers, organization of W-2s and other forms — and headaches. Taking everything into account, people may not be thinking about ways to save, especially in a rebounding economy.

Into this context comes Tax Time Savings Bond Campaign — a new, national initiative just launched in Boston. A number of local organizations have teamed up to encourage taxpayers to put aside some money for the future with savings bonds. Bonds can be ordered using one’s federal tax return.

Doreen Treacy of DotWell Civic Health Institute is among those urging eligible residents to take advantage of this savings opportunity by ordering bonds for themselves or as gifts for loved ones, which creates a nest egg that automatically builds over time. DotWell has two free tax preparation sites: Dorchester House and Codman Square Tech Center.

For many low- to moderate-income taxpayers, “there isn’t any opportunity to effortlessly save,” Treacy says. For some, this is the only time during the year that they can put a little something away.

“Basically everyone loves the idea, but most of us lack the discipline to save,” Treacy notes.

Codman Square site manager and Fiscal Health Coordinator Shauntell Foster sees the benefits, having ordered bonds herself in the past. She also understands the flip side of the coin.

“The type of filers that we see earlier in the year are the type of filers that really need their money in urgency and they probably have a lot of other financial obligations that they’re trying to take care of,” she says.

Many have misconceptions about savings bonds and have avoided them as a result, Foster says. Most are more willing to invest in a bond after she debunks myths and bad information people have received.
“We’re just basically here to benefit you and we just build that trust with the community where they’re able to then say [yes to a savings bond],” Foster said.

Out of 300 filers the Codman Square site has helped so far, four have ordered bonds. Foster is hopeful that more people will opt for savings bonds in the next few weeks.

“I bought one last year for my children and I’ll continue to buy them every year because it’s $50. I probably drop more than that when I go out to eat.”

Massachusetts Affordable Housing Alliance Executive Director Tom Callahan has been both a purchaser and recipient of savings bonds. Being a recipient, he says, paves the way to a healthy financial future.
Callahan acknowledges that though the use of bonds has advantages, people should not rely solely on them.

“They play a good role and have historically played a good role in our society but they’re definitely a niche product,” Callahan said. “We’re not advocating people build an entire savings portfolio on just savings bonds but it’s a good starting point. It’s a good complement to mutual funds, CDs and other financial products.”

With the campaign comes a simpler method of ordering bonds: a single click of the button for tax preparers and, for those who do their own taxes, Form 8888 (Allocation of Refund including Bond Purchase) that allows one to split refund money and deposit it into a checking or savings account. Both routes have helped tax preparers reinforce bond benefits for people.

Action for Boston Community Development, Inc. is also promoting the campaign.

“It’s a lack of knowledge and we’re providing education,” says Vernette Allen of ABCD. “We haven’t seen uptake but that’s not unexpected, given that it’s a brand new thing.”

Tax Day falls on April 18 this year, in observance of Emancipation Day in Washington, D.C. For more information on savings bonds and other ways to save, visit www.bondsmakeiteasyorg and irs.gov.