February cover story: Season of love — and money

Tax season is upon us. Time to gather documents, look at filing options

Yes, February is here. Time to start thinking about getting that Valentine’s Day gift or even last-minute planning for that spring or summer wedding.

It’s also time to start thinking about …Money.

The days are rapidly counting down to April 15 when the tax man cometh.

Time for taxpayers to make sure they have all their receipts, their W2 payroll forms and other documents to fill out their 1040 or other tax forms.

For those who need help but can’t afford a trip to the for-profit tax preparer, assistance is available throughout the 805 region thanks to the local Volunteer Income Tax Assistance (VITA).

In Ventura County, “Earn It!, Keep It!, Save It!,” is a Ventura County Financial Empowerment Partnership led by United Way Ventura County, the Business and Employment Services Department of the Ventura County Human Services Agency, Cabrillo Economic Development Corp. and the IRS.

The partnership provides free income tax preparation to low- and moderate-income families through the IRS’s VITA program.

The partnership seeks to increase awareness of and access to the Earned Income Tax Credit (EITC), the nation’s largest anti-poverty program, and to provide electronic filing of income taxes free of charge.

Families with three or more children may receive a credit of up to $6,143 in 2014. The maximum credit is $5,460 for families with two children, $3,305 for families with one child, and just $496 for those without children, according to information provided by the Tax Policy Center, a joint project of the Urban Institute and the Brookings Institution.

The partnership targets individuals and families with 2014 household income of less than $53,000.

“The EITC can boost a family’s income, but the rules are somewhat complicated and so not everyone who applies for it will receive it,” Susan Englund, United Way’s vice president of Community Impact, stated in a media release.

The partnership traditionally begins recruiting VITA preparers in the fall, with training completed by January.

Beginning Jan. 31 through April 11, trained volunteer tax preparers prepare federal and state tax returns at sites located throughout Ventura County including El Centrito Family Learning Centers in Oxnard; the Housing Authority of Ventura and Oxnard; the Ventura Job and Career Center; the East County Job and Career Center; the Santa Clara Valley Neighborhood for Learning in Santa Paula, SurePath Financial Solutions in Camarillo, Many Mansions Hillcrest Villas in Thousand Oaks, and the Fillmore Community Service Center.

The public is asked to call 2-1-1 to schedule an appointment before stopping by any of the 11 VITA locations throughout Ventura County. Some VITA locations do not accept walk-ins.

Tax filers must bring a Social Security card (SSN) or an Individual Taxpayer Identification Number (ITIN) for each family member, W-2 forms for all jobs worked in 2014, all 1099 forms for other income earned, photo identification for each adult filing, childcare provider information, and a cancelled check for direct deposit of refund. Bringing a prior year tax return is helpful.

 

Assistance in Santa Barbara, San Luis Obispo Counties

Help for low- to moderate-income earners is also available in Santa Barbara and San Luis Obispo counties.

Click here for information on times and locations in English

Click on image for information on times and locations en español

 

Electronic filing also available

Also available for those individuals who want to file their own tax returns is the online site http://www.myfreetaxes.com.

The interview-based software allows eligible taxpayers to prepare and file for free their federal and state taxes online. The target population for this program is single filers who are computer savvy, those who have W-2 forms for each job held in 2014, have 1099 or 1098 income forms showing other income (unemployment, Social Security, school loans, health-care reimbursement, state tax refund, gambling winnings, contract work) and those who possess an email address.

Individuals or families with a combined income of $60,000 or less in 2014 are eligible.

The program is sponsored by Walmart in partnership with Goodwill, the National Disablity Institute and United Way.

The tax preparation checklist includes:

1) Gather your documents

• W-2s for each job held in 2014 for each person in the household; this form reports your name, wages and other tax information to the IRS.
• 1099s showing other income (unemployment, Social Security, school loans, health-care reimbursement, state tax refund, gambling winnings, contract work) that is reported to the IRS.
• 1098s showing payments you’ve made (school loans, property tax).
• 1095-A if you received credit from the healthcare.gov marketplace.
• Income/interest statements for any savings account/investments.
• Bank account numbers: a voided check or your bank or credit union’s routing number and savings or checking account number for your refund to be deposited automatically into your account through direct deposit.
• Last year’s tax return (if you have it).

2) Collect information for everyone in your household

• Name and taxpayer number as they appear on the SSN card or ITIN letter for you and all dependents (including children and elderly relatives for whom you provide care).
• Date of birth and relationship (son, daughter, mother, etc.).
• Current address (it may be different from the address on your employment records).

3) Gather additional items to get a larger refund

• Childcare expenses: name, address, tax ID or SSN of the childcare provider.
• Business expenses and assets: if you’re self-employed or have a small business
• College: loans and/or scholarships received, and bills for technical/community college or university (Forms 1098-T/1098-E).
• Educator expenses for teaching grades K-12 (school supplies and materials used in the classroom).
• Charitable donations: list of contributions and amounts, receipts for contributions over $250.
• Vehicles: vehicle sales tax, personal property tax statement for each car you own, total miles driven for the year and/or total miles driven for business.
• Renters: amount of rent paid (in some states).
• Homeowners: mortgage interest statement (Form 1098), real estate taxes paid, Statement of Property Tax Payable in 2014.
• Retirement/IRA: amount contributed to an IRA and total value as of December 2014.
• ITIN: If you need to apply for an ITIN for yourself or a family member, find out what other documents you need to take with you when you get help filing your taxes for free.

4) File your taxes for free through www.MyFreeTaxes.com

5) Keep copies of your forms and tax statements

For your protection, keep any forms used to prepare your taxes and a copy of your return for seven years. This information will make it easier to file your taxes next year.

 

The deadline to file taxes is Wednesday, April 15!

Did you know?

> Tax season is on the horizon. Organization and good record-keeping are keys to filing an accurate return in a timely manner. Failure to submit income and expenditure information can subject a person to an audit and additional financial repercussions. To stay organized, set aside a folder to contain any items applicable to your tax filings. Make a list of expected documents, including income summaries from work, bank interest statements, student loan information, mortgage documents, charitable donation receipts and similar items. Check these documents off your list as you place them in the folder. If documents are missing, promptly seek them out from the appropriate sources. Once all of your necessary documents have been compiled, make an appointment with an accountant or get to work on filing your own taxes.

— By Metro Editorial Services (MS)

 

Ventura County VITA locations