Today’s date signals the start of tax season and, with that, a flurry of advertisements from tax preparers eager to help you with your returns — for a price. The good news is that you don’t have to pay anything to get tax help if you don’t want to.
Last year, about 5,000 Savannahians sought help filing their taxes through the Volunteer Income Tax Assistance program, or VITA, netting $7.8 million in federal returns for individuals and families and saving them some $1.4 million in tax preparation fees.
VITA kicks off today at 15 sites around Savannah and is available to any individual who made $60,000 or less in 2014. VITA is made up of a coalition of community groups, led by the Neighborhood Improvement Association.
“What we’re trying to do is let them know it’s a service that’s available and free,” said Teinique Gadson, executive director of the association. “Our volunteers are IRS-trained and certified, and we understand how to file tax returns.”
Average tax preparation fees can vary but frequently start in the $300 range, a hefty chunk for what can be a fairly straightforward filing.
“I saw someone who paid $780 of their refund — they actually brought in their prior
year return,” said Gadson. “That’s money they could’ve saved or spent on something else.”
The Neighborhood Improvement Association has worked with the IRS for about 12 years in offering the service in Chatham County, especially in assisting taxpayers who may qualify for the Earned Income Tax Credit, or EIC, a subsidy for low- to moderate-income working individuals, couples and families.
Many tax preparers often cite the Earned Income Tax Credit in their advertisements, promising to get maximum returns for individuals.
During a recent door-knocking campaign to distribute VITA flyers at the Kayton-Frazier homes, Step Up Savannah Inc. volunteers came across small English-Spanish postcards advertising a local tax preparation service offering free TVs for referrals and promising “MAXIMUM CREDIT” of between $5,000 and $15,000.
Gadson said she often counsels people to do their research on tax preparers and not be misled by big promises.
“I’m not saying that all of them don’t offer a good quality service, but just make sure you understand what you’re paying for exactly,” she said. “You shouldn’t have to pay to get the money back that you worked for and the credits you deserve.”
For those who may have missed out on the EIC in years past, VITA does offer assistance with back taxes, though taxpayers will need to call to make an appointment.
Robyn Wainner, a longtime VITA volunteer with Step Up Savannah, said she’s helped many people who didn’t even know they were eligible for earned income credit. She said one woman she helped while working in another state had missed out on it for three consecutive years.
“We were able to go back three years and get that back, which turned out to be over $10,000,” she said.
Affordable Care Act and ‘Super Saturdays’
The biggest difference this year for taxpayers will be whether they used the Affordable Care Act’s health plans. This is the first year the IRS will impose penalties for those who did not enroll for health insurance through one of the government exchanges or, in states that participated, state exchanges earlier this year.
Individuals who receive health insurance through one of the ACA’s plans must bring in additional documentation when they get their taxes done, Gadson said.
“Beginning next year, everyone who has health insurance will have to prove that they have coverage, but this year only individuals who went through the exchange have to do that,” said Gadson.
The penalty for individuals and families without coverage is $95 per adult and $47.50 per child under the age of 18 up to $285 — or 1 percent of the household income, whichever is greater. So, for example, a single filer who earned $25,000 last year may face a penalty of $250 if he or she did not sign up for a health plan.
To raise awareness about the ACA and its potential sticker-shock penalties, Gadson said they will be holding “Super Saturday” events throughout tax season to help taxpayers do both their taxes and enroll in the exchange with the help of volunteers from the nonprofit J.C. Lewis and Curtis V. Cooper health centers.
Gadson said they mostly want to let the community know they’re here to help, not just for lower-income people, but for anyone who meets the requirements.
“That’s a large part of what we’re facing, is a lot of people don’t know we exist,” she said. “So we try to come up with different ways to get the word out.”
For location and hours of operation for the VITA sites, go to the Neighborhood Improvement Association’s website at www.niacdc.org. Individuals may also file for free online using the link myfreetaxes.com/coastalempire.
WHAT TO BRING WHEN YOU GO TO VITA SITE:
• Valid photo ID.
• Valid Social Security cards for all taxpayers and dependents.
• All W-2 forms (including unemployment pension and Social Security).
• Forms 1098 and 1099 (if applicable).
• All child care coverage info.
• Checking and savings account info for direct deposit.
• Proof of health coverage if enrolled through ACA exchange.
Source: Neighborhood Improvement Association