February 02, 2010

TAX ASSISTANCE

Numerous resources are available to assist the majority of taxpayers with free tax preparation assistance as well as free electronic filing of tax forms. Assistance is now available through the VITA (Volunteer Income Tax Assistance) Program, Tax Counseling for the Elderly (through AARP), and MilitaryOneSource (in addition to VITA) for members of the military. These free programs are a tremendous boon to consumers as they provide an avenue to avoid tax preparation fees as well as costly refund anticipation loans.

In addition to free assistance in preparing tax returns, most sites also provide free electronic tax filing (e-file). E-filing will also enable you to receive your refund more quickly; offering options for directly depositing the refund into checking, savings, IRAs, or splitting your refund between multiple accounts.

VITA.
The VITA Program offers free tax help to low- to moderate-income (generally, $49,000 and below) people needing assistance in preparing their own tax returns. VITA sites are generally located at community centers, libraries, schools, and other convenient/ accessible locations. To locate the nearest VITA site, call: 1-800-829-1040.

VITA FOR MILITARY PERSONNEL & FAMILIES.
The military also has a strong VITA Program. Marines, airmen, soldiers, sailors, guardsmen, and their families receive free tax preparation assistance at offices within their installations. These sites provide free tax information, tax preparation, and assistance to military members and their families. The primary distinction with this and other VITA sites is the ability to work with individuals that are trained and equipped to address military-specific tax issues.

TAX COUNSELING FOR THE ELDERLY.
The Tax Counseling for the Elderly (TCE) Program provides free tax help to people aged 60 and older. In conjunction with the IRS-sponsored TCE Program, AARP offers their Tax-Aide counseling program at more than 7,000 sites nationwide during the filing season (February 1 – April 15). Trained and certified AARP Tax-Aide volunteer counselors help people of low-to-middle income with special attention to those ages 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 the AARP Tax-Aide website.

ADDITIONAL TAX RESOURCES.
-- Current Tax Info (deductions, exemptions, tax brackets, etc.)
-- Do I Have To File? (often worthwhile even if you don’t “have to”)
-- Education Tax Benefits
-- Federal Tax Forms
-- Free File Online Tax Preparation Sites
-- State Tax Forms
-- Understanding Taxes (interactive IRS tutorial)