Volunteers’ tax prep help adds up

AARP and United Way tax preparation volunteers helped nearly 2,600 taxpayers receive about $1.4 million in refunds this year, and their work isn’t done yet.

AARP is continuing to offer help, with Tax Aide volunteers available 10 a.m.-noon each Tuesday at the Blake Library, 2351 SE Monterey Road,  to help people file for the federal Economic Stimulus Payment.

The IRS estimates that in Martin County, there are 3,738 potential remaining filers for the Economic Stimulus Payment (as of June 19, 2008). The deadline for filing is Oct. 15, 2008.

This filing affects certain recipients of Social Security and Veterans Affairs benefits. Generally, those benefits are nontaxable and recipients do not typically file tax returns. 

MORE INFO

More information about tax preparation services is available at www.irs.gov or by calling the IRS toll-free at 1-800-829-1040 or contacting Peggy O’Malley, IRS senior tax specialist, at (561) 616-2016.

Free tax preparation help

Here are the results of the free tax preparation help conducted Feb. 1-April 15 by United Way of Martin County and AARP volunteers:

-- United Way of Martin County’s Volunteer Income Tax Assistance sites offered free tax help to low- to moderate-income people (those earning about $40,000 and below). Sites were open in the evening, by appointment at the Hobe Sound Library and at the United Way offices in Stuart.  There were 232 returns filed, bringing taxpayers $156,708 in refunds, including $73,731 in Earned Income Tax Credit.

In 2007, United Way sites helped bring 63 people a total of $36,000 in refunds. The significant increase in service this year was due to having more volunteers (11), expanded hours of operation and a more visible location in Hobe Sound.

-- The AARP Tax Aide program serves taxpayers of any age and encompasses a greater variety of tax forms than the VITA sites.  This year, AARP handled clients on a walk-in basis at the Blake, Hoke and Morgade libraries and at Seacoast National Bank on Hutchinson Island. There were 2,346 returns filed, bringing taxpayers $1,238,616 in refunds.

These totals do not include the amounts received through the Economic Stimulus Payments, which were also handled by the tax preparation volunteers.

ABOUT THE ECONOMIC STIMULUS PAYMENTS

In order to receive an economic stimulus payment, certain retirees and veterans need to file a tax return by Oct. 15 if they have at least $3,000 from a combination of certain Social Security benefits, Veterans benefits and earned income. Supplemental Security Income (SSI) does not qualify. Also, residents who can be claimed as a dependent on someone else's tax return are not eligible.

The minimum stimulus payment for eligible people is $300 ($600 for married filing jointly). The stimulus payments will not count toward or negatively impact any other income-based government benefits, such as Social Security benefits and food stamps. 

To prepare these returns, residents should bring photo identification, some proof of their Social Security number – such as a copy of their Social Security card; their Social Security statement (Form 1099-SSA); or Medicare card – an estimate of the amount of Social Security, railroad retirement or veterans benefits received; and any other income statements (i.e. W-2s, 1099-INT, if received). If direct deposit will be requested, residents should bring their bank routing and account numbers.

IRS press release on economic stimulus payments (PDF)
IRS information on VA benefits and economic stimulus (PDF)
IRS information on SSA benefits and economic stimulus (PDF)

FOR MORE INFORMATION

For more information about the AARP Tax Aide program, visit www.aarp.org/taxaide. More information about the economic stimulus payment is available at www.irs.gov or by calling the IRS toll-free at 1-800-829-1040 or contacting Peggy O’Malley, IRS senior tax specialist, at (561) 616-2016. 

Informational flyer
in English and Spanish
(PDF)

ABOUT THE EARNED INCOME TAX CREDIT

To qualify for the EITC, workers must have a Social Security Number, be a U.S. citizen or resident alien.

For the 2007 tax year, the salary limits are as follows:

Earned income and adjusted gross income (AGI) must each be less than:

- $37,783 with two or more qualifying children ($39,783 if married and filing jointly).

- $33,241 with one qualifying child ($35,241 if married and filing jointly).

- $12,590 with no qualifying children ($14,590 if married and filing jointly).

Investment income must be $2,900 or less for the year.

Here are the maximum Earned Income Tax Credit amounts for the 2007 tax year:

- $4,716 with two or more qualifying children.

- $2,853 with one qualifying child.

- $428 with no qualifying children.