3 Ways to Beat IRS Budget Cuts and Make Tax Prep Easier
The Internal Revenue Service is warning taxpayers that 2015 could be a tough year to get the tax help you need. IRS Commissioner John Koskinen recently pointed to budget cuts for the federal tax agency that could result in operational shutdowns and furloughs, poor telephone customer service, and delays in return processing and refund payments. National Taxpayer Advocate Nina Olson characterized the cutbacks as telling “millions of taxpayers who seek help each year, in essence, ‘We’re sorry. You’re on your own.'”
Yet just because the IRS won’t necessarily be the perfect resource to get the tax help you need doesn’t mean that you have to go without assistance entirely. For many taxpayers, other sources of help in tax preparation can give you a much better experience.
Let’s take a look at three ways to bypass the IRS to get high-quality help.
1. Get Free Help from Volunteer Income Tax Assistance
T he Volunteer Income Tax Assistance program offers help in preparing and electronically filing tax returns. If you have a disability, are elderly, have limited understanding of the English language or make $53,000 or less in income, then you can typically qualify to participate in VITA. Volunteers are IRS-certified to be able to provide basic help and tax-return preparation, and at many locations, you can get help with more difficult issues. Find a local location via this IRS website: http://irs.treasury.gov/freetaxprep/ or by calling 800-906-9887.
To participate, bring photo ID along with your Social Security number, date of birth, copies of your previous year’s tax returns,and any W-2s showing your work income and 1099s or other forms showing interest and dividends or other types of income. To take advantage of direct deposit options, you’ll also want to have your bank account and routing numbers handy.
2. 60 or Older? Get Free Help Tailored to Your Needs
The Tax Counseling for the Elderly program is designed to provide free tax help with an emphasis toward serving people who are 60 or older. TCE volunteers tend to be retired themselves and are IRS-certified to offer help on questions about pensions, retirement-account distributions and other retirement-related issues that those over 60 most commonly face.
The majority of TCE sites are administered by the AARP Foundation’s Tax-Aide program, which has operated for more than 45 years and helped nearly 50 million taxpayers nationwide. To find an AARP-administered site, go to this AARP website: http://www.aarp.org/applications/VMISLocator/searchTaxAideLocations.action or call 888-227-7669. You can also use the same IRS links and phone number listed above for the VITA program to find a list of TCE sites as well.
3. Use IRS Free File
The Free File program is a partnership between the IRS and various private companies that make software for tax preparation. Free File offers two different services depending on your income. If you made $60,000 or less in adjusted gross income in 2014, then you qualify for complete tax-preparation services for free. With your choice of several preparation programs, you’ll get guidance throughout the preparation and filing process, with electronic filing at no extra charge. For those who make more than $60,000, tax preparation software isn’t free, but you can still use the program’s fillable forms, which will help you by automatically doing the math for the figures you enter.
The documents you’ll need for Free File are similar to those for VITA and TCE, but the benefit is that you can use your own computer without leaving your home. For more information, check out the IRS Free File website: http://freefile.irs.gov/