Don't Mess With Taxes

When you just can't with your taxes, check into getting help from a VITA or TCE volunteer. (Photo by Nataliya Vaitkevich)

Even simple taxes can be confusing. So it’s a relief when a reputable, knowledgeable person can help you file.

But what if you can’t afford a tax professional?

The people who staff the thousands of Volunteer Income Tax Assistance and Tax Counseling for the Elderly sites across the United States could be your tax-filing answer.

Locally-provided tax help: The Volunteer Income Tax Assistance, or VITA, program was created after passage of the Tax Reform Act of 1969 as a way to increase taxpayer education.

Over the decades, VITA has helped not only increase taxpayers’ knowledge of our tax system, but also provide quality tax return filing assistance to filers in underserved communities in association with local partner programs nationwide.

Tax Counseling for the Elderly, or TCE, provides a similar service, but as its name indicates, it focuses on the specialized filing needs of older taxpayers.

Most TCE sites are operated by the AARP Foundation's Tax Aide program, with a goal of helping older Americans on fixed incomes meet their tax filing responsibilities, and claim all the tax breaks for which they qualify, in the most cost-effective way. Although AARP takes the lead here, you don’t have to belong to the group to get TCE help.

Volunteers at VITA and TCE locations across the United States help eligible taxpayers prepare and e-file their returns for little or no cost.

Finding your community's sites: The tax-help clinics typically are sponsored by community and nonprofit groups. They usually are at locations that are convenient for local taxpayers to find and get to, such as local schools, community and neighborhood centers, libraries, schools, shopping malls, and other convenient and easily accessible locations

You can find the VITA site nearest you by using the IRS' VITA Locator Tool or calling toll-free (800) 906-9887.

When looking for a TCE site, use the AARP Site Locator Tool. Or you can call, again toll-free, (888) 227-7669.

Both online search tools are updated regularly from the start of tax season through April.

With a couple of clicks on my laptop, I found 13 VITA and 18 TCE locations near my Austin home.

And if you’re primarily a mobile device user, find a side via the IRS2Go app.

Trained by the IRS: Since taxes and people's money are involved, the sponsoring groups and IRS want to make sure the VITA and TCE preparers know what they are doing.

VITA and TCE volunteers must pass IRS sanctioned tax law training that meets or exceeds the tax agency's standards. This training includes guidance on maintaining the privacy and confidentiality of all taxpayer information. You can see the curricula in IRS Publication 6744, the VITA/TCE Volunteer Assistor's Test/Retest.

In addition, the IRS requires a quality review check for every return prepared at a VITA/TCE site prior to filing.

A sort-of DIY option, too: While most taxpayers who come for VITA or TCE help want the person-to-person tax guidance, some of the sites also offer a less hands-on assistance option. They give filers the option to prepare their own basic federal and state tax returns for free at the locations, using web-based tax preparation software.

How is this quasi-do-it-yourself option at a VITA or TCE location different from Free File? At one of the volunteer locations, you do your taxes online, but if you run into a problem someone is there to help guide you through the process.

Look for the "Self-Prep" notation in the location listings if you're interested in trying to do your taxes yourself, but like the idea of expert back-stopping if you have trouble or questions.

TCE also offers even more options. Among the options for older taxpayers, depending on the site, are —

• One-Visit Scan (Internet Access Required): Tax documents are scanned at the Tax-Aide site and then Tax-Aide volunteers prepare the return remotely.
• Two-Visit Scan: Tax documents are scanned at the Tax-Aide site and then volunteers prepare the return remotely. During a second visit, taxpayers work with a volunteer to finalize their return and obtain a printed copy for their records.
• Drop Off Service: Tax documents are left at the Tax-Aide site with a volunteer and the return is prepared remotely. During a second visit, taxpayers work with a volunteer to file their return and obtain a printed copy and their original documents.
• No Site Visit Required (Internet Access Required): Taxpayers upload tax documents to the IRS-provided software. Tax-Aide volunteers prepare the return remotely and work with the taxpayer to file the return electronically.

TCE filers also can get online coaching. Here they prepare their own returns, and receive online support from a volunteer to help them along the way.

Taxpayer eligibility for VITA, TCE help: Like the volunteers, the taxpayers who come to a VITA clinic for help also must meet some requirements.

The first is income. The earnings threshold typically is adjusted each year. Generally, to qualify for VITA help this year, you must make $67,000 or less.

VITA assistance also is available to individuals with disabilities, and taxpayers whose native language is not English.

TCE generally offers free tax prep and filing assistance to taxpayers who are age 60 and older. As you might expect, TCE staff specialize in tax questions about pensions and retirement-related issues.

Some VITA and TCE sites also provide help with state tax returns.

Pre-help preparation: You also need to be aware of the pre-VITA/TCE site visit requirements related to your taxes. Specifically, you must do some pre-filing prep work.

To ensure that your tax return can be completed accurately, all volunteer tax filing help sites ask that you bring with you:

• Proof of identification, such as a photo ID. This can be a valid state-issued driver’s license, or federal visa or passport. Other acceptable identity documents include those issued by the military, a school, or employer.
• Social Security cards or Individual Taxpayer Identification notices/cards for you, your spouse, and any dependents.
• Birth dates for you, your spouse, and any dependents you will claim on the return.
• Proof of foreign status if applying for an Individual Taxpayer Identification Number (ITIN), an option at certain VITA sites.
• A copy of last year’s federal and state returns, if available.
• All W-2 and 1099 forms, as well as any other information for other income not reported on a 1099.
• Information supporting all deductions and credits.
• Proof of an account at a bank or other financial institution for direct deposit of refund
• A copy of last year's tax return, if applicable.
• For filing of prior year returns, copies of income transcripts from IRS and, if applicable, your state filings.

Also note that if you're married and you and your spouse want to file a joint return, both of you must come to the VITA or TCE site.

Lots, but not total, tax help: Finally, remember that VITA and TCE volunteers focus on helping a broad base of taxpayers. This means they work on returns that cover more basic filing issues.

So that necessarily means that some, particularly more complex, tax areas are not addressed at VITA and TCE sites. Returns that involve the following will not be worked on at the sites:

• Schedule C sole proprietor returns with losses, depreciation, or business use of home
• Complicated Schedule D filings, i.e., capital gains and losses
• Form SS-5, request for Social Security Number
• Form 8606, reporting of non-deductible IRA contributions
• Form 8814, filed to report a child's investment income taxed at the parent's tax rate, aka the kiddie tax
• Form SS-8, determination of worker status for purposes of federal employment taxes and income tax withholding
• Parts 4 and 5 of Form 8962, premium tax credits related to the Affordable Care Act (Obamacare)
• Returns with casualty/disaster losses

You can find more on the type of tax issues VITA and TCE will and won't tackle, as well as a reminder of the documents you need to bring, in IRS Publication 3676-B.

You also might find these items of interest:

• 4 ways to file your taxes for free
• 6 tax credits for lower-to-middle income taxpayers
• Don't overlook the EITC, which could be worth thousands

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