Filing taxes can be a stressful and often confusing process. Knowing how to file your taxes and what help you may qualify for is the first step in easing the anxiety.
As you receive documents in the mail, keep them organized in one place. Keep important papers that relate to major expenses, such as mortgage, retirement, medical, educational, and all income information.
Before making an appointment to get your taxes filed or to prepare yourself for self-filing, gathering the necessary documents will make the process more efficient.
The Volunteer Income Tax Assistance (VITA) program offers free tax help to people who generally make $60,000 or less, persons with disabilities, the elderly and limited English speaking taxpayers who need assistance in preparing their own tax returns. IRS-certified volunteers provide free basic income tax return preparation with electronic filing to qualified individuals.
Assistance is provided at community and neighborhood centers, libraries, schools, shopping malls, and other convenient locations.
Free Tax USA (https://www.freetaxusa.com) also offers free federal self-filing. Many of the online filing programs offer step-by-step instructions and checklists.
Whether you self-file or have someone help you, be sure to ask about the following most common and helpful credits to working families and students:
- The Earned Income Tax Credit (EITC) helps low- to moderate-income workers and families get a tax break. If you qualify, you can use the credit to reduce the taxes you owe – and maybe increase your refund.
- The Child Tax Credit helps families with qualifying children get a tax break. You may be able to claim the credit even if you don’t normally file a tax return.
- An education credit helps with the cost of higher education by reducing the amount of tax owed on your tax return. If the credit reduces your tax to less than zero, you may get a refund. There are two education credits available: the American opportunity tax credit (AOTC) and the lifetime learning credit (LLC).
- Credit for Child and Dependent Care Expenses: If you paid someone to care for your child or other qualifying person so you (and your spouse if filing jointly) could work or look for work, you may be able to take the credit. Your federal income tax may be reduced by claiming the Credit for Child and Dependent Care expenses on your tax return.
Don’t overlook these important credits that can give you a hand up!
https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit-eitc
By Joyce McCauley-Benner
Editor
