FAQ

Is it really free?

Yes, it is really free to file your state and local taxes at one of the volunteer tax sites. Each site, however, does have a scope that it must stay within. It is not necessarily your income, but the complication of your return. If you believe your taxes are complicated, ask about it when you call to make an appointment. Our goal is to tell you up front if it's too complicated for our volunteer services.

Can I file both federal and state taxes here?
Yes, we file both federal and state forms electronically. Our volunteers are not versed in every state's tax laws, however, so if you have a specific question on an out-of-state return, you should call that state's Department of Revenue prior to your appointment with our volunteers.  

What documents do I need to bring with me?

Regardless of where you file your taxes, you should bring certain documents to substantiate their income, deductions/credits, dependents, etc. These documents include:

* Valid driver's license or photo identification (self & spouse, if applicable)
* Social Security cards for all persons listed on the return
* Dates of birth for all persons listed on the return
* All income statements: Forms W-2, 1099, Social Security, Unemployment, or other benefits statements, self-employment records and any documents showing taxes withheld
* Dependent child care information: payee’s name, address and SSN or TIN
* Mortgage information, including interest and taxes paid
* Proof of out-of-pocket educational and medical expenses (receipts tallied prior to appointment)
* Proof of account at financial institution for direct debit or deposit (i.e. cancelled/
* Voided check or bank statement)
* Prior year tax return (if available)
* Any other pertinent documents or papers

What is the EITC?

The Earned Income Tax Credit (EITC) sometimes called the Earned Income Credit (EIC), is a refundable federal income tax credit for low-income working individuals and families. Congress originally approved the tax credit legislation in 1975 in part to offset the burden of social security taxes and to provide an incentive to work. When the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.

To qualify, taxpayers must meet certain requirements and file a tax return, even if they did not earn enough money to be obligated to file a tax return.

The EITC has no effect on certain welfare benefits. In most cases, EITC payments will not be used to determine eligibility for Medicaid, Supplemental Security Income (SSI), food stamps, low-income housing or most Temporary Assistance for Needy Families (TANF) payments.

How do I know if I qualify for the EITC?
The American Recovery and Reinvestment Act (ARRA) provides a temporary increase in the earned income tax credit (EITC) for taxpayers with three or more qualifying children. The maximum EITC for this new category is $5,751, for the 2011 tax year. ARRA also increases the beginning point of the phase-out range for the credit for all married couples filing a joint return, regardless of the number of children. These changes apply to 2009 and 2010 tax year returns.

For the 2011 tax year (filing in 2012), earned income and adjusted gross income (AGI) must each be less than:

* $43,998 ($49,078 married filing jointly) with three or more qualifying children
* $40,964 ($46,0443 married filing jointly) with two qualifying children
* $36,052 ($41,132 married filing jointly) with one qualifying child
* $13,660 ($18,740 married filing jointly) with no qualifying children

Tax Year 2011 maximum credit:

* $5,751 with three or more qualifying children
* $5,112 with two qualifying children
* $3,094 with one qualifying child
* $464 with no qualifying children

For more information, visit www.irs.gov/eitc

What is a qualifying child?

A qualifying child is a son, daughter, grandchild, stepchild, adopted child, brother, sister, stepbrother, stepsister (or their descendents) or foster child placed by a government or private agency.

The qualifying child:
• must have lived with you for more than six months of the year.
• should be under 19, or 24 if full-time student or any age if totally and permanently disabled.
• must Be younger than the taxpayer claiming that child (there were some rare instances where the taxpayer claiming the child was actually younger than the child)
• must not have filed a joint return other than for a claim of refund

If you are a qualifying child, you cannot claim the EIC yourself. If a child is claimed for both the EITC and Child Tax Credit, the same worker must claim both credits.

What is the average EITC return?

The average EITC refund in Central Oregon is $1,700. In total, the EITC brings over $20 million to the tri-county area. Our goal is to reach the 25% of the population who qualify for the EITC but do not file for it. Click here for free filing locations and times in Central Oregon.

What if I don't qualify for the EITC, should I still file taxes?

Yes. You might be due a refund because you had too much taken out of your paycheck last year. OR if you were qualified for the EITC within the last THREE years and didn't claim the credit, you can file an amended tax return for those years. Also, you might qualify for other federal and state credits or deductions.

Federal Tax Benefits		State of Oregon Benefits
Child Tax Credit		Oregon EITC
Child & Dependent Care Credit		Working Family Child Care Credit
Education Credits & Deductions		College Savings Plans Credit
First-Time Homebuyers Credit		Elderly or Disabled Credit
Retirement Savings Credits

What document do I need to bring with me to the TAKE CREDIT tax site?

regardless of where you file your taxes, ance Center, a free income tax preparation site or from a professional tax return preparer, they should bring certain documents to substantiate their income, deductions/credits, dependents, etc. These documents include:

* Valid driver's license or photo identification (self & spouse, if applicable)
* Social Security cards for all persons listed on the return
* Dates of birth for all persons listed on the return
* All income statements: Forms W-2, 1099, Social Security, Unemployment, or other benefits statements, self-employment records and any documents showing taxes withheld
* Dependent child care information: payee’s name, address and SSN or TIN
* Proof of account at financial institution for direct debit or deposit (i.e. cancelled/
* Voided check or bank statement)
* Prior year tax return (if available)
* Any other pertinent documents or papers

What is the Advanced EITC?

Eligible workers can receive part of their EITC for the current year in their paychecks throughout the year, instead of waiting until they file their tax returns. To be eligible for this Advance Earned Income Credit (Advance EIC) payment, you must expect to have a qualifying child, expect to fall within certain income limits, and expect to meet other specific requirements. The employee who wants the credit must give his or her employer a completed and signed Form W-5, Earned Income Credit Advance Payment Certificate (W-5, see below). The advance payment is added to the your net pay for the pay period.

This option is ideal if you have one full time job as you do not want to over estimate your tax refund.

A new completed W-5 form is required each year to continue the Advanced EIC.
Click here for a W-5 form.

What about Refund Anticipation Loans?

A Refund Anticipation Loan (RAL) is is loan you get from the organization or person who is preparing your tax return. The loan is additional debt that you take on - for the amount of money you think you will be getting from the federal government as a tax return. You will pay a fee for the loan as well as interest on the loan. The amount of interest can be extraordinary and is not regulated by any government. Admittedly, if you are about to be evicted, there might be a need for a RAL. But generally, there is not a need for them.

Keep your money instead. If you don't have a bank account get one - see the Bank on Central Oregon Website (click here) for a list of banks or credit unions near you than can help you. You can get your tax return directly deposited in your account in 7-10 days.

Will the EITC affect my other government subsidies?

The EITC is not considered income. It should not affect any benefits you are currently receiving.

Click for more information click below:
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