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Volume 4 Issue 1January 2013

4 Places to Get Free Tax Help

This post is from Brandon Ballenger at partner site Money Talks News

In the past few months, politicians like Texas Gov. Rick Perry and House Speaker John Boehner have suggested Americans spend as much as $500 billion a year to file taxes.That's way off, according to Politifact. But they cite a tax expert's opinion and a 2005 Government Accountability Office study, which both suggest it is probably above $100 billion a year.That's a crazy number, considering many Americans don't have to pay anything. According to the Internal Revenue Service, 70% of Americans are eligible for free tax preparationand filing software.

Find out where to get your taxes done for free 

 

 
 

  

 CAB Client Spotlight 

   Jake Boyd

 

  
 Jake Boyd
  
Congratulations to new homeowners, Jake and Savannah Boyd.  Jake took advantage of the CAB program to save for their first home.  "Our home will provide my wife and I a stable and safe environment to begin our new future and a happy family,"says Jake.
 

Tax Prep 2013  

  

For a location near you visit: 

 http://irs.treasury.gov/freetaxprep

 

Items you need to bring
To have your tax return(s) prepared at a VITA or TCE site you need to bring the following information with you:

  • Proof of identification - Picture ID
  • Social Security Cards for you, your spouse and dependents or a Social Security Number verification letter issued by the Social Security Administration or
  • Individual Taxpayer Identification Number (ITIN) assignment letter for you, your spouse and dependents
  • Proof of foreign status, if applying for an ITIN
  • Birth dates for you, your spouse and dependents on the tax return
  • Wage and earning statement(s) Form W-2, W-2G, 1099-R, 1099-Misc from all employers
  • Interest and dividend statements from banks (Forms 1099)
  • A copy of last year's federal and state returns if available
  • Proof of bank account routing numbers and account numbers for Direct Deposit, such as a blank check
  • Total paid for daycare provider and the daycare provider's tax identifying number (the provider's Social Security Number or the provider's business Employer Identification Number) if appropriate
  • 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. The most accurate information is usually located on your original Social Security card. If you do not have an SSN 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.

 

 

 

 

 

 

 

 

 

 

 

 
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In This Issue
4 Places to Get Free Tax Help
Do You Qualify for the Earned Income Tax Credit?
Quit Getting Tax Refunds

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 Do You Qualify for the Earned Income Tax Credit?

If you earned less than $45060 (or $50270, if you're married and filing jontly) last year, you may qualify for the Earned Income Tax Credit (EITC).  The maximum credit for tax year 2012 is $5891.  Even if you don't owe any tax or are not required to file, you must must file a tax return in order to claim the credit.

Find out if you qualify for the Earned Income Tax Credit

 
Quit Getting Tax Refunds
  Lots of folks are grumbling about having to wait to file their taxes. Why? They get refunds.

 

That's no secret. Every tax filing season, the Internal Revenue Service notes that most taxpayers get refunds.

 

But the American Tax and Financial Center, a new undertaking by tax software giant TurboTax, has taken a closer look at this refund trend.

 

A federal tax refund is the largest lump sum of money received in a year by the typical American household, according to the Center. And based on 2011 and 2012 IRS data, it estimates that around $230 billion in federal tax refunds will be issued this year to American taxpayers.

They'll get this money, their money, eventually -- after the IRS finishes updating forms and its computer system to match the tax law changes Congress didn't approve until Jan. 1. Because of that congressional tardiness, the IRS is processing returns, and issuing refunds, a bit later this year. And that could cause a lot of people a lot of problems.  Tax refunds, says the American Tax and Financial Center, are especially vital for U.S. households who live paycheck-to-paycheck and who depend on a tax refund to help cover the costs of everyday living.  Forty-two percent of early tax filers plan to use their refund to pay down debt and cover the costs of rent, food and utilities, according to the Center's analysis.

As longtime readers of know, I am not a fan of tax refunds. I think it's better to have your money in hand throughout the year via proper payroll tax withholding.

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