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Free Tax Preparation
If the cost of tax preparation is way beyond your budget, or if you just love a bargain, then you may want to visit a tax preparation volunteer site. The IRS Volunteer Income Tax Assistance (VITA) Program or the Tax Counseling for the Elderly (TCE) Program offer free tax help if you qualify. The AARP Tax-Aide program helps older persons complete their tax returns.
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Volunteer Income Tax Assistance Program (VITA)
The VITA Program offers free tax preparation help to low- to moderate-income ($36,000 and below) people who cannot prepare their own tax returns. Volunteers sponsored by various organizations receive tax preparation training to help prepare basic tax returns in communities across the country. VITA sites are generally located at community and neighborhood centers, libraries, schools, shopping malls, and other convenient locations. Most locations also offer free electronic filing. To locate the nearest VITA site, call 1-800-829-1040.
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Tax Counseling for the Elderly (TCE)
The Tax Counseling for the
Elderly (TCE) Program provides free tax preparation help to people age 60 and
older. Trained volunteers from non-profit organizations provide free tax
counseling and basic income tax return preparation for senior citizens.
Volunteers who provide tax counseling are often retired individuals associated with non-profit organizations that receive grants from the IRS.
As part of the IRS-sponsored TCE Program, AARP offers the Tax-Aide counseling program at more than 9,000 sites nationwide during the filing season. Trained and certified AARP Tax-Aide volunteer counselors help people of low-to-middle income with special attention to those age 60 and older.
For more information on TCE call 1-800-829-1040. To locate the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit AARP's Internet site.
Military personnel and their families get free tax help!
The military is one of our strongest partners in the Volunteer Income Tax Assistance (VITA) Program. The Armed Forces Tax Council (AFTC) consists of the tax program coordinators for the Army, Air Force, Navy, Marine Corps, and Coast Guard. The AFTC oversees the operation of the military tax programs worldwide, and serves as the main conduit for outreach by the IRS to military personnel and their families.
Marines, airmen, soldiers, sailors, and guardsmen, and their families worldwide get tax preparation help at offices within their installations. These VITA sites provide free tax advice, tax preparation, and assistance to military members and their families. They are trained and equipped to address military specific tax issues, such as combat zone tax benefits and the effect of the new Earned Income Tax Credit (EITC) guidelines. The military tax programs generated over 400,000 electronic 2002 federal income tax returns.
Commanders support the program by detailing service members to prepare returns and by providing space and equipment for tax centers. The IRS supports these efforts by providing tax software and by training service members to prepare taxes at the military sites.
Most service members file their tax returns electronically at
their tax centers and, by selecting direct deposit, receive their refunds in as little as one week. This combined effort ensures that service members receive free tax assistance from well-trained and equipped military tax
preparers.
What to Bring
Items you need to bring to the
VITA/TCE Sites to have your tax returns prepared: Photo identification Social
Security Cards for you, your spouse and dependents Birth Dates for primary,
secondary and dependents on the tax return Current year’s tax package if you
received one Wage and earning statement(s) Form W-2, W-2G, 1099-R, from all
employers Interest and dividend statements from banks (Forms 1099) A copy of
last year’s Federal and State returns if available Bank Routing Numbers and
Account Numbers for Direct Deposit Other relevant information about income and
expenses Total Paid for Day Care Day care expenses for each child Day Care
providers tax identifying number and address To file taxes electronically on a married filing joint tax return, both spouses must be present to sign the
required forms.
It is extremely important that each person use the correct Social Security Number (SSN). The most accurate information is usually located on your original social security card. Each year hundreds of thousands
of returns are delayed in processing or credit/deductions are disallowed because names and Social Security Numbers do not match Social Security Administration records. To prevent processing delays in paper returns and rejected electronically filed returns, volunteers check the accuracy of each Social Security Number, as well as the spelling of the name associated with the number. If you do not have a Social Security Number for you or a dependent you should complete Form SS-5, Social Security Number Application. This form should be submitted to the nearest Social Security Administration Office.
If you or your dependent is not eligible to get a Social Security Number you may need an Individual Taxpayer Identification Number (ITIN).
There are payment options available when using IRS e-file. If you owe, you can make a payment (by April 15) by authorizing an electronic funds withdrawal (direct debit) from a checking or savings account, paying by credit (Discover Card®, American Express@Reg;, MasterCard@Reg; or VISA@Reg; Card), or by check or money order(made out to the United States Treasury) using Form 1040-V, Payment Voucher.
AARP Tax-Aide
AARP Tax-Aide was established in 1968 to help older persons complete their tax returns — a process which can be daunting and costly. A national survey has found that roughly half of the nation's adult population lacks the most basic skills to prepare a tax return. The tax laws are complex, and often persons with limited means end up using a significant portion of a refund simply to have their taxes prepared. Trained AARP Tax-Aide volunteers help persons with low- and middle-income maximize their legal deductions and credits, resulting in tangible economic benefits to them. The program began with four volunteers, who served 100 persons that season; in 2003, the program had
grown to nearly 32,000 volunteers, who assisted 1.85 million persons at sites
throughout the United States.
AARP Tax-Aide is administered through the
AARP Foundation in cooperation with the IRS. The AARP Foundation is AARP's
affiliated charity. Foundation programs provide security, protection and
empowerment for low-income older persons in need.
Today, AARP Tax-Aide is an important part of AARP's commitment to community service, helping to improve communities by providing this valuable tax preparation service and offering
volunteers meaningful, satisfying community service roles.
IRS Free File
Another free tax preparation service is sponsored by the IRS. This
is an online program called Free File, a joint project of the I.R.S. and an
alliance of 19 software companies; it can be found by going to www.irs.gov and
clicking on the Free File link. That project, now in its third year, allows tens of millions of taxpayers to prepare and submit federal returns electronically at no cost. Eight of Free File's industry members have lifted restrictions on such things as income, age or state of residency, so that anyone can qualify. State tax returns are not free and participating companies in the IRS Free File program can earn money by selling supplementary services, like those for state returns.
Tax Preparation
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| ©2007 Michael Johnston, CPA. All Rights Reserved. |
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