Personal Finance Coach: Find Free Tax Filing Assistance
The IRS’s Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs offer free basic tax return preparation to people who generally make $72,000 or less, have disabilities, or are limited English-speaking taxpayers.
’Tis the season for walking clients through how to find free tax preparation services in their community, says TrustPlus Personal Finance Coach Ashley Denae Hannah, AFC®. The deadline to file this year is Monday, April 18.
Below Ashley shares a few key things to know about getting plugged in with the IRS’s Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs which offer free basic tax return preparation to people who generally make $72,000 or less, have disabilities, or are limited English-speaking taxpayers.
Fun fact: Ashley is a certified VITA volunteer.
How does one get connected with free tax prep via VITA?
VITA and TCE sites are generally located at community and neighborhood centers, libraries, schools, shopping malls and other locations like them across the country. To locate the nearest VITA or TCE site, use the VITA Locator Tool or call 800–906–9887. Sites differ on taking walk-ins versus requiring appointments so check asap and make an appointment if you can, even if they take walk-ins, because they tend to fill up fast.
Also think about how you are going to get there, how long it will take, when you’ll need to leave. You can choose a location that’s convenient for you whether close to your home or work. Are you driving yourself, will you be taking public transit or walking, do you need to find a ride from a family member or friend? Once you’ve got the logistics taken care of then you can focus on making sure you have everything you need for when you go.
What do I need to bring to my appointment?
Check out the IRS’ What to Bring to Your Local VITA or TCE Site page before you go. And, the sooner the better, in case you need to find or secure any of the following documentation:
- Proof of identification (photo ID)
- Social Security cards for you, your spouse and dependents
- An Individual Taxpayer Identification Number (ITIN) assignment letter may be substituted for you, your spouse and your dependents if you do not have a Social Security number
- Proof of foreign status, if applying for an ITIN
- Birth dates for you, your spouse and dependents on the tax return
- Wage and earning statements (Form W-2, W-2G, 1099-R,1099-Misc) from all employers
- Interest and dividend statements from banks (Forms 1099)
- Health Insurance Exemption Certificate, if received
- A copy of last year’s federal and state returns, if available
- Proof of bank account routing and account numbers for direct deposit such as a blank check
- To file taxes electronically on a married-filing-joint tax return, both spouses must be present to sign the required forms
- Total paid for daycare provider and the daycare provider’s tax identifying number such as their Social Security number or business Employer Identification Number
- Forms 1095-A, B and C, Health Coverage Statements
- Copies of income transcripts from IRS and state, if applicable
One thing to keep in mind is social security cards for your kids. I often have clients who run into problems because they don’t bring social security cards for their children. If you’re claiming adult dependents, then you need identification for them as well.
Another thing is to arrive early, as many sites are busy. You could be waiting a long time if you miss your spot because you’re late.
If you choose a virtual appointment, then be sure that you have the ability to scan and upload your documents. Because of COVID, many sites are doing virtual meetings and accepting the necessary documentation via scan and PDF. So if you end up going that route then you need to have a computer or a phone app that enables you to scan and upload a lot of PDFs. Some office/business stores offer those services but since it’s sensitive personal information we’re talking about, I typically suggest to my clients that they figure out ahead of time how to make it work on their computer or phone.
Finally, list a phone number that you will answer on your VITA paperwork and answer your phone until you’ve confirmed with your VITA site that they’ve submitted your tax filing. If they have questions or need to confirm anything, they may call you.
What else do you tell your clients who are getting ready to file their taxes or even ones who don’t think they need to file?
A few things.
Keep all of your paperwork. You’ll get a printout at the site, keep it, along with a copy of everything you brought.
Store your tax documents in a safe location. If you do that regularly, then you don’t actually have to scan your social security card every year or your kids’ ID because you already have a copy, and you know where it is. The process gets easier year after year. The more organized you get the easier it gets.
Build dealing with your taxes into your schedule. Break it up into small windows if necessary, ideally on a weekly basis, leading up to the date of your appointment. What’s one more document that I can go find? Where’s my interest or earnings statement from my bank? Let me go find what else I need. If you wait to do it all at the last minute, then it could feel overwhelming and you might not have everything you need.
Plan for how you’ll use your return. When you file your taxes you’ll get an estimate of what your return will be. Start planning with your Personal Finance Coach what you’ll do with it. Are you going to save it or pay off some debt? Many of my clients feel empowered when they create a plan, like I’m going to put 30% of it in savings, 30% towards debt, give my child something, and then the rest is for me to enjoy!
If you owe taxes after filing, you have options for payment. You never have to feel overwhelmed. You can set up a payment plan with the IRS. I recently had a conversation with a freelancer. He said, “I’ve saved nothing for taxes.” And I was like, “okay, well, worst case scenario, we will have a tax bill and we can call the IRS to make a payment plan. And because we’ve been budgeting, we know how much you can afford to pay on the payment plan.” The important thing in these situations is to communicate with the IRS and stick to the payment plan so you don’t get added penalties. You want to accurately budget how much you can pay, breaking up what you owe into smaller payments.
Unsure if you need to file taxes? Check out the “Do I Need to File A Tax Return?” page on the IRS website. They have an interactive tool to help you determine if you need to file.
If you would like additional assistance getting connected to your local VITA site or connecting to taxpayer resources, be sure to schedule a session with your financial coach. Happy tax filing season!
