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Volunteers again offer tax-preparation help
For the second straight year, the Fauquier County Community Action Committee (FCCA) is serving as an IRS-sponsored “Volunteer Income Tax Assistance” (VITA) site, offering free tax preparation for county taxpayers earning $39,000 or less a year.FCCA has been running the clinic at its office at 50 Sullivan St. in Warrenton since Feb. 5, and will continue doing so through the tax deadline on April 15.
The clinic is open every Tuesday and Thursday from 5 p.m. to 9 p.m., and Saturday from 9 a..m to noon.
This year, FCAA is not only offering the free tax preparation service, but is also taking aggressive measures to spread the word about a new credit opportunity available under the economic stimulus package approved by Congress and signed by the president.
Taxpayers who were previously not required to file a tax return, including seniors and disabled veterans receiving Social Security Benefits and Veterans Disability Income, should now file so as to qualify for a tax rebate of $300 to $1,200.
“We want to alert the public that this is an opportunity they shouldn’t miss,” FCCA’s new Director Tom Benjamin said. “We are trying to reach as many people as possible.”
Today, FCCA Coordinator, Dixie Sheetz and Bob Helms, who has volunteered with VITA for 18 years, will talk to seniors at the Warrenton Community Center about the stimulus program.
“Many elderly people don’t file taxes because they get Social Security,” Sheetz said. “But this year, they can get $300 just for filing. That’s a lot of money for someone on a fixed income.”
Last year, FCCA helped 50 low- to moderate-income people prepare their taxes. The organization hopes to double that number this year.
FCCA’s free tax preparation service enables people to avoid potentially doling out $300 to $400 for a professional tax preparer.
According to Sheetz, many low-income people who are in immediate need of money would otherwise apply for Tax Refund Anticipation Loans (RAL), a high-interest, short-term loan secured by a taxpayer’s expected a tax refund.
Because the interest is so high, taxpayers lose a significant portion of their tax refund.
The VITA service is not only free, but FCCA also e-files, enabling taxpayers to receive their tax refund within seven to 10 days.
Sheetz said that many people also miss out on the money they should be receiving because they aren’t aware of certain tax credits. Others are aware of the credits, but they can’t decipher the tax code in order to receive them.
“The tax code is so difficult to read,” Helms said. “Some people give up in frustration. There’s all this credit with different criteria. It’s hard for [anyone] to understand.”
Working with a VITA volunteer to review and fill out tax forms typically takes about an hour. Volunteers break down the complex language of the tax code and inform the taxpayer about the credits for which he or she is eligible.
In addition to the economic stimulus program, Sheetz stressed the importance of the Earned Income Tax Credit (EITC).
This credit is often claimed in error or overlooked altogether. The credit can be worth up to $4,700 and is a “refundable credit,” meaning that one may be eligible even if they don’t owe taxes. In 2006, the average EITC for taxpayers prepared by the clinic was $1,600.
Anyone earning more than $3,000 and up to $39,000 may be eligible. Additional rules govern the credit, but the volunteers can quickly determine if eligibility. Many people are also eligible for the Child Credit, the Additional Child Credit, and the Child and Dependent Care Credit.
FCCA is currently relying on just four volunteers to provide VITA.
“We could really use some more help,” Sheetz said. Volunteers are not required to have any prior tax preparation experience, but need to take an IRS-regulated test that assesses their basic skills.
“We love what we do,” Sheetz said. “It’s wonderful to see families come in here who are needy, and to turn around and give them the money they deserve.”
Those interested in receiving tax preparation assistance, must call to make an appointment. Call the FCCA (540) 347-7000 ext. 101, or Dixie Sheetz at (540) 347-2454
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