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

So, I sat down last week and after all of my calculations I discovered (as I hope many of you have) that Uncle Sam owes me some money.  And while filing taxes isn’t the most rewarding experience, I’m pretty excited about the anticipated result:  my tax refund. 

Now comes the hard part – deciding what I do with it.  Have you decided what you’ll do with yours?  Maybe you can help me out.  Here are some ideas I have:

1.       Take a class to further my education.  I’ve been out of college now for almost 2 years and during that time have toyed on and off (mostly off because of idea #2) with going back to school.  After some investigating, I’ve learned that courses at JCTC are as low as $363 while personal enrichment courses at U of L range between $59 and $150.  My favorite, Ghost Hunting is available for just $84

2.       Pay down my student loans.  As many other recent college graduates, I have quite a bit of student loan debt to my name.  And while I’m not shy about it, the number is constantly in the back of mind, taunting me and reminding me of how much I still owe.  By making a one-time payment on my highest interest student loan, I can pay if off 2 years earlier and save about $1,750!

3.       Plant a tree . . . to help replace those lost in the windstorm of 2008 and the ice-storm of 2009.  I can get a 15 gallon tree for about $159.  And, did you know that over the course of 50 years, a single tree can generate $31,250 of oxygen, provide $62,000 worth of air pollution control, recycle $37,500 worth of water, and control $31,500 worth of soil erosion? (Arbor Day Foundation)

4.        Join a gym.  I love to exercise but I’m not one of those run-for-fun kind of people.  I’m just not motivated in that way, especially when it’s cold outside.  I’ve wanted to join a gym for a while but have been really hesitant to commit to a membership and add another monthly expense to my budget.  But Angie isn’t the only Metro United Way staffer planning a wedding and if I want to look and feel better by May 23^rd I better get started! 

5.       Give more to Metro United Way.  If you didn’t already know, I’m in the Donor Relations Department at Metro United Way.  We’re responsible for the annual campaign and generating revenue for the benefit of the community.  I truly believe that no other organization can do as much good for our community, nor can my charitable gift have a greater impact anywhere else than at Metro United Way. 

There’s the list.  Now I want to hear from you!  How do you think I should spend my tax refund?  What would you do if you were me?  And what do you plan to do with yours?      

Haven’t filed your taxes yet?  You could qualify for free tax preparation assistance.  For more information about free tax services, you can call 2-1-1, visit the Louisville Asset Building Coalition or one of the VITA (Volunteer Income Tax Assistance) sites near you!   

Photo Credit: thedailyhamster

Education, General, Giving, Income 2-1-1, tax refund, VITA

I filed my federal and state income tax returns yesterday, and it was a completely stress-free experience.  How can that be, you ask?  Well, I’ll let you in on a little secret.  I had my taxes done by a VITA (Volunteer Income Tax Assistance) volunteer.  VITA volunteers are specially trained in electronic income tax filing and the service is free to those with low- to moderate- income (generally $42,000 and below).

Being a Floyd County resident, I called the Southern Indiana Asset Building Coalition at 812-206-7514 and was set up with an appointment to meet with a volunteer tax preparer.  When I walked into Your Community Bank for my appointment, I was glad to see awards and signage from Metro United Way prominently displayed.  The bank and its employees have an outstanding commitment to support the community through their giving to Metro United Way, contributing substantially in the 2008 campaign.  I was surprised and delighted when I discovered that the VITA volunteer that would be helping me was Diane Murphy, who has been a strong supporter of Metro United Way through the years (Floyd Co. CSC, 2004-2008; Chair of Floyd Co. campaign, 2008; Chair of Clark/Floyd Co. campaign, 2006). 

Diane told me that I’d be serving as her “guinea pig,” as I was the first person that she’d be helping with taxes this year.  She also said that preparing my return would provide good experience for her, as I had a little bit of everything – interest income, mortgage interest and property taxes, educational expenses, mileage from volunteering activities,  a state tax refund from 2007, sales tax from the purchase of a car, etc.  Her colleague Scott assisted us and the entire process took about an hour to complete.  It helped that my receipts and paperwork were organized into categories ahead of time so that it was easier for Diane to plug the numbers into the computer program.  When we were finished, all that remained was to print out copies, sign my autograph, and shake hands on a job well done.  My return was filed with the IRS electronically, and my refund will be deposited directly into my bank account.  I felt lighter all day knowing that this dreaded annual chore was done.  And it was done completely painlessly!

If your income qualifies you for free income tax assistance from a VITA volunteer, I recommend that you call today and set up an appointment.  Here’s what you’ll need to bring with you to your appointment:

• Social Security cards for you, your spouse and dependents and/or a Social Security Number verification letter issued by the Social Security Administration
• Birthdates for you, your spouse and dependents
• 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 deposits of refunds
• Total paid for day care provider and the day care provider’s tax identifying number (the provider’s Social Security Number or the provider’s business Employer Identification Number)
• To file taxes electronically on a married filing jointly tax return, both spouses must be present to sign the required forms.

If you’re interested in learning more about free income tax assistance or the other services available to those with low- to moderate-income, please call the Southern Indiana Asset Building Coalition at 812-206-7514 or check out their website at www.siabc.org.  If you live on the Kentucky side of the river, call the Louisville Asset Building Coalition at 502-292-6182 or visit their website at www.labcservices.org.  Do yourself a favor and make this tax season less taxing…I’m sure glad that I did!

General, Income, Volunteering asset building, Community, Floyd County, Louisville Asset Building Coalition, Southern Indiana Asset Building Coalition, tax preparation, VITA