Building Futures

By Linda Midgett

Tax season is quickly passing and most individuals have already met their filing obligations, but there are likely more than just a few people waiting until the last minute to file their federal income tax return. The delay tactic may seem preferable for the taxpayer who anticipates owing money, but that return can be electronically submitted at anytime and the payment can be made with a payment voucher by this year’s extended deadline of April 18.

It’s also reasonable to assume that some filers are waiting because they don’t have the money to pay for their return to be prepared. Preparation of even a basic income tax return can be expensive. Professional income tax preparation businesses can help the preparer in this position by allowing the taxpayer to deduct the tax preparation fees from their anticipated tax refund. This is an attractive offer to a person that is not able to prepare the return on their own and who also doesn’t have the money to pay for the preparation of the return. However, taxpayers that elect this option often lose a large part of their refund to pay to have the income tax return prepared or to get their refund quicker.

Luckily, there is another alternative to paying for income tax preparation and that is free tax help. The IRS identifies four sources of help to get information to file a tax return on their website.

» First, there is the IRS website at http://www.irs.gov. A person can prepare and file a federal tax return for free through free file, a service offered by the IRS and its partners. The site provides assistance in identifying the appropriate free file options or allows a person to review the eligibility guidelines offered by the seventeen free file companies providing on-line tax preparation and filing.

» The second IRS identified source of help is Taxpayer Assistance Centers. The taxpayer can contact their local IRS office. Information about services provided at the local IRS office is posted at their website. The easiest way to find the information is to click on the “Individual” tab at the top of the website and then scroll down to “Contact Local IRS” and from there click on “How to Contact the IRS.” Employees at the local IRS office will help prepare returns for individuals with incomes less than $49,000 or who qualify for the Earned Income Tax Credit.

» Thirdly, the IRS provides a Tax Help Line for Individuals, (800) 829-1040, to answer federal tax questions.Another toll-free line provided by the IRS, (800) 829-4477, offers pre-recorded messages covering various tax topics. From this number an individual can also check the status of their refund. TTY/TDD users may call (800) 829-4059 to ask tax questions or to order forms and publications. Forms and refund status are available on-line. This information is also found by going to the “Individual” page of the IRS website.

Finally, many local communities offer assistance with free income tax assistance at Volunteer Income Tax Assistance (VITA) sites. These sites provide trained volunteers to help prepare tax returns for income qualified taxpayers. The income guideline for VITA is an adjusted gross income of $49,000 or less. There are also some site-specific criteria about the types of returns that are completed. For example, not all VITA sites have volunteers that are certified to complete military returns.

A complete list of VITA sites is available at the IRS website. This information is easiest found by typing “VITA sites” in the search box on the IRS home page. Sites for Bristol, VA, Washington County, VA, and Sullivan County, TN are found on the list. People Incorporated sponsors several of the area’s VITA sites. In Washington County, Virginia, residents needing assistance filing their federal income tax return can go to the VISSTA Regional Area Training Center on Saturdays, from 10:00 AM to 2:00 PM. The center is located at 450 Commerce Drive in Abingdon. Bristol residents wanting to complete their federal income tax return can go the Bristol City Library on Tuesday evenings from 5:30 PM to 7:30 PM or Saturdays from 10:00 AM to 2:00 PM. In Russell County, residents can find a VITA site operating on Tuesdays from 10:00 AM to 2:00 PM at the Southwest Virginia Community College Learning Lab located in the Government Building. A resident wanting more specific information about the types of returns that can be filed at the site can use the contact information found on the IRS website to call or email the site.

Additional support to prepare income tax returns is also found at AARP sponsored sites. These sites usually target senior taxpayers, but typically they do not turn away others that are eligible. The toll-free number for finding these sites is (888) 227-7669 or go to www.aarp.org to find the nearest AARP Tax-Aide site.

One final thought about filing an income tax return. If you are an individual that has not filed a return because you had no filing requirement, reconsider. An estimated 20 percent of Virginians qualify for the Earned Income Tax Credit but do not receive it. One reason that taxpayers miss out is that they do not file a federal income tax return. EITC is claimed on the federal income tax return. This tax credit was created to boost the earnings of low-to-moderate income workers. The best way to maximize it is to access assistance with free income tax preparation and keep all of your valuable refund.

Linda Midgett is director of Community Services at People Incorporated. She coordinates the agency’s Earned Income Tax outreach and the VITA sites. Call People Incorporated’s Abingdon, Va., office, (276) 623-9000, to find the location and times of free income tax preparation. These efforts are in conjunction with Virginia’s CASH (Creating Assets, Savings and Hope) Campaign.