Don't tax yourself
It's February. By now you've received 2009 tax forms from your employer and any other forms you need to deal with your taxes. If you're feeling confused about filing (Do I need to file some schedule? Can I claim the Earned Income Tax Credit that can bring a refund of several thousand dollars? And how can I get my refund faster?) you might be thinking about taking your taxes to one of the tax preparing businesses that, like winter's slushy piles of snow, are suddenly all over Collinwood.
These businesses file your taxes and give you a loan in anticipation of the refund you will get from the federal and state government. You go home with your money faster, but are these "refund anticipation loans" with associated fees that gobble up part of your hard-earned tax refund really the best deal for you and your family? If you qualify for the Earned Income Tax Credit (EITC), you could be getting several thousand dollars back, but tax preparation businesses charge a flat fee and often a percentage of your refund. They could be getting the equivalent of a bank loan for you to get the money. There are alternatives.
The Internal Revenue Service (IRS) trains volunteers to do your taxes for free and will file your taxes electronically at many sites throughout Collinwood and Cuyahoga County. This program, called VITA for Volunteer Income Tax Assistance, is available to people with adjusted household incomes of no more than $49,000. The VITA sites can do taxes for self-employed folks who's filings aren't too complicated, such as home daycares or small home repair businesses. And if you are behind on your taxes, these sites can go back two years to file for you.
The VITA sites are not the only places doing tax preparation for free and filing taxes electronically. Another alternative is Benefit Bank (see adjacent story). Benefit Bank sites exist year-round and can help your household evaluate what public benefits you might be eligible for. During tax season, those with adjusted incomes of up to $57,000 are eligible for free tax preparation. Benefit Bank sites are usually able to file for self-employed individuals also. The Cleveland Foodbank on South Waterloo Road is one Benefit Bank site that serves Collinwood. You can also get tax help through AARP (American Association of Retired Persons) sites, and there are sites if you need tax help in a language other than English.
And, most importantly, when you file electronically through either the VITA or Benefit Bank sites, and you have a bank account, in most cases, the IRS can direct deposit your refund to your bank account within 7-10 business days of filing. If you don't have a bank account, of course the IRS will send you the check directly, but many of the VITA sites have services such as referrals to credit counseling, wealth building workshops, and information on how to get and keep a bank account.
So, how do you get connected to these sites? One easy way is to call 2-1-1 or First Call for Help M-F: 8:30am-5:00pm. 211 is the 24-hour number for health and human service referrals in Cuyahoga County. They will return your call if you leave a message. 211 staff will help you find the closest site to your zip code, review documents and whether or not your income makes you eligible for free tax help, and schedule you for the next available appointment.
You can also visit 211's web site and find sites where you can make your own appointment for tax help. The site is http://211cleveland.org/SvSearchParams.aspx?k;;0;;N;;0;434922;tax%20preparation%20ass;Partial;Tax%20Preparation%20Assistance. Put in your zip code and age and you will find sites located in your zip code and beyond. You will find sites where you can make an appointment yourself. The main thing to remember is that you don't have to pay for tax preparation if your qualify for free help. Resources are out there and not far away!