LIVE UNITED Y’All!

By John Nevitt

As Ben Franklin once said, “In this world nothing is certain but death and taxes.” I can’t offer any help with the first one, but I can give you a little advice regarding the second.

Tip #1 – Go to a VITA Site

Did you know that if your household earns less than $49,000 a year, you can have your taxes done free of charge through an effort supported by Metro United Way? Through a program developed by the IRS called VITA (Volunteer Income Tax Assistance), thousands of volunteers across the country are preparing federal and state tax returns for families, free of charge, to ensure they are getting all of the tax credits for which they are eligible, resulting in larger tax refunds. On average, you can save between $115 and $205, according to a national survey by the National Society of Accountants.

Metro United Way is making these same services available across our seven county region. VITA sites use certified volunteers who have completed an IRS approved training program to make sure you are getting the largest refund possible. To find a site near you, call Metro United Way 2-1-1, or use one of the following links to connect with one of our community partners:

• Louisville Asset Building Coalition (Jefferson County)
• Southern Indiana Asset Building Coalition (Clark, Floyd, and Harrison Counties)
• HJW Career and Financial Literacy Institute

Tip #2 – File electronically and have your refund directly deposited into your bank account.

If you electronically file your return and choose the direct deposit option, you will typically have your refund in two weeks or less. We all know that time is money, and waiting for a paper check from Uncle Sam can take four to six weeks. VITA sites will electronically file your taxes for free. If you don’t have a bank account, our tax sites can connect you to a local bank or credit union with good products for you.

Tip #3 – Avoid using Refund Anticipation Loans.

Refund anticipation loans, or RALs, offered by many larger commercial tax preparers, auto dealerships, check cashing services, or payday lenders, strip valuable resources from your tax return, costing an average of $100 to get your loan a few days faster.

Tip #4 – Make sure you are claiming all of the tax credits for which you are eligible.

Here are a few to keep in mind: The Earned Income Tax Credit (EITC) supports families with incomes up to $48,279 and can result in a refund as high as $5,657, with an average refund of $2,000. Approximately $26 million in EITC goes unclaimed each year in Louisville. Another important credit is the child tax credit which earns you $1,000 per child. Other credits include the childcare tax credit, the savers credit, education credits, and homebuyer’s credits. Consult the IRS website for more information on the variety of tax credits available.

Tip #5 – Use electronic filing software.

The Louisville Asset Building Coalition (LABC), co-founded and supported by Metro United Way, offers free tax preparation software on its website for families of modest means. Also, certain LABC VITA sites, and other sites in our regional area, provide assisted self file services, including space, volunteers, and computers loaded with free filing software; they’re there to help if you get stuck. If you are not  eligible to use the free software because you’re income is too high, you can purchase software for a modest fee that will scan your return to ensure you are claiming all eligible deductions and credits to maximize your refund.

Income EITC, electronic filing, LABC, SIABC, tax credits, taxes, VITA

By John Nevitt

photo by DavidDMuir - click on photo for link

Just about everyone is feeling economic pressures these days in one form or fashion. At one extreme are families who have lost their home due to foreclosure, or who have lost their job through no fault of their own. These families are faced with making tough decisions about how to meet their most basic needs.

For the rest of us, we are deeply concerned about large dips in our retirement savings and investments, and we are fearful about the next downsizing at work.

Whatever an individual’s circumstances may be, it is safe to say that financial worries abound, and there are lots of good, hard-working folks in our community who are struggling to make ends meet and to provide for themselves and their families.

Let me tell you about one valuable service in our regional community supported by Metro United Way – free tax services. Through a long-standing partnership with the IRS and an effort known as VITA (volunteer income tax assistance), and a large number of community based organizations, volunteers are trained to complete your federal and state tax returns, and file them for you – at absolutely no cost to you if your household income is less than $49,000.

“What’s the catch?” you might wonder. “How can this be free?” “What strings are attached?” These are all good questions to ask.

As you may know, Metro United Way’s mission is to improve lives by mobilizing the caring power of our community. Free tax services help us fulfill our mission. For many families, a tax refund represents a significant amount of their annual income, and comes in one lump sum. The goal of this program is to increase income by ensuring individuals and families are claiming all of the tax credits for which they are eligible, such as the Earned Income Tax Credit. We know nationally that as many as 20-25% of families who are eligible are not claiming this credit due to lack of awareness, or because they don’t know how to complete the required tax forms. This represents tens of millions of dollars for our regional community – money that could be helping families during tough times, and benefitting our local economy.

Working with the IRS, volunteers are trained to determine if you are eligible, and to claim this credit that can bring as much as several thousand dollars back to families, can be significantly more depending on household size and income. By having your taxes done at one of the many VITA tax sites located across our regional community, you can be assured that there are volunteers certified by the IRS to assist you, maximize your tax refund, and leave you with a smile on your face, because there is no cost to you other than your time, and there are no strings attached! Filers with bank accounts who choose direct deposit can have their return in as little as 10 days or less.

If you need help, visit one of the free VITA tax sites supported through Metro United Way, in partnership with the Louisville Asset Building Coalition (LABC) for Jefferson County, the Southern Indiana Asset Building Coalition (SIABC) for Clark, Floyd and Harrison Counties in Indiana, and HJW Career and Financial Literacy Institute for Oldham and Shelby Counties.

If you would like to volunteer to help with free tax services, please contact the appropriate organization for your region. Last year, these efforts served 10,000 filers in our regional area, and additional volunteers are always needed as we strive to serve more.

Income free tax preparation, HJW Career and Financial Literacy Institute, LABC, SIABC, taxes, VITA