Released: March 22, 2006

Free Income Tax Services Match Taxpayers, Benefits

TOPEKA, Kan. – Shawnee County taxpayers stand to benefit from free income tax services, said Cindy Evans, Kansas State University Research and Extension family and consumer sciences agent in the county.

In 2005, volunteers at eight Volunteer Income Tax Assistance (VITA) sites in the county prepared 5,000 federal tax returns, and generated $4.49 million in refunds, Evans said. The same sites also processed returns to help taxpayers owing about $500,000 in tax liabilities.

Why free income tax services?

Low- to moderate income families who try to do their own taxes to save $50 to $100 in preparation and filing fees, may miss tax credits, such as the Earned Income Tax Credit (EIC) intended to supplement low wages or a child care credit that could amount to several thousand dollars and offer increased financial stability.

Taxpayers also may be unfamiliar with the Homestead Credit that may mean a rebate on real estate taxes or the Food Sales Tax Credit, that can refund sales tax on groceries. While people may think these tax credits are only for seniors, many low-income younger taxpayers will qualify as well.

Shawnee County taxpayers using the free income tax preparation services also may be eligible to receive no-fee check cashing coupons for both their state and federal refund checks, Evans said.

“Last year, 85 Shawnee County taxpayers not affiliated with a financial agency used the coupons to cash $72,000 in refunds,” she said. “With check-cashing fees at two percent or more, they realized savings that totaled more than $1,400.”

In Shawnee County, the average adjusted gross income (AGI) of taxpayers using the VITA sites last year was about $23,098. Free help is typically available for taxpayers earning less than $38,000 a year, although American Association of Retired Persons (AARP) sites will assist seniors with incomes above that threshold. Also, tax preparers have some restrictions on the types of returns they prepare.

For more information on local free income tax services, contact the local or district K-State Research and Extension office. The VITA Program is sponsored by the Internal Revenue Service (IRS). Volunteer tax preparation programs also are sponsored by the AARP and other community agencies.

-30-

K-State Research and Extension is a short name for the Kansas State University Agricultural Experiment Station and Cooperative Extension Service, a program designed to generate and distribute useful knowledge for the well-being of Kansans. Supported by county, state, federal and private funds, the program has county Extension offices, experiment fields, area Extension offices and regional research centers statewide. Its headquarters is on the K-State campus, Manhattan.

Story by:
Nancy Peterson
nancyp@oznet.ksu.edu
K-State Research& Extension News