Family & Consumer Science News
Tips for choosing a tax service
By Terri Black County Extension Agent

Tax season is the time of year that we all love to hate. There are so many options and taxes are confusing by nature. While some brave souls choose to file their tax returns themselves, many people look for trained assistance to prepare and file their returns. It is important to know that all tax preparation services are not alike. Shopping around for a tax service can save you money both in terms of the fees you pay for the service and the amount of taxes you may owe or have due to you in a refund.

Before you pay someone to prepare and file your tax return, find out if you are eligible for free tax assistance. The Volunteer Income Tax Assistance (VITA) program provides volunteers trained by the IRS to prepare, and in most cases, electronically file returns for free. The VITA program targets individuals eligible for the Earned Income Tax Credit. As a general rule, working families with children and household income less than $39,000 may be eligible for this service. Also, if you are age 60 or older, you can often receive free help preparing and filing your tax return through the AARP Tax Counseling for the Elderly (TCE) program.

Unfortunately, there are no local sites for tax preparation assistance in Burke County. The nearest VITA site is at Augusta Technical College in Augusta. Please call (706) 771-4063 for details on this site. The nearest TCE site is located in Augusta at James Maxwell Library. The site will be available on Tuesday and Friday from 10:00 AM until 2 p.m. and Saturday from 9 a.m. until 1 p.m.. Please call (706) 793-2020 for more details. To find a VITA or TCE tax preparation site in another area, contact the IRS at 1-800-829- 1040.

If you are not a senior citizen and earn too much to qualify for VITA, don't worry! The Internal Revenue Service is still interested in receiving your tax return. There are several choices, including a do-it-yourself approach to tax filing, using a commercial preparation chain, or hiring a professional accountant. When using a tax preparer, you can expect to pay a fee for preparing your return. Many factors will affect your fee, such as the complexity of your return and the number of forms required.

If you decide to file your taxes on your own, there are many resources available to you. Review your options carefully before you make a decision and keep in mind that you are solely responsible for what is in your tax return. There are several internet- and computer-based programs available to you. If your experience is limited and your return is complex, you may want to seriously consider hiring a tax professional.

Most preparers will charge an extra fee to file your return electronically. Electronic returns, however, are processed much faster than paper returns. For example, if you choose to file electronically and have your refund direct deposited into your account, you will generally have your tax refund by the end of the following week.

BEWARE! Many companies now promise to give you your tax refund on the spot. The truth is that these are short-term loans with high interest rates and fees. A refund anticipation loan is an expensive way to get your refund! With electronic filing and direct deposit, the Internal Revenue Service will deposit your refund into your bank account within seven to ten days. It just doesn't make sense to pay several hundred dollars to have your refund a few days earlier.

With tax season just around the corner, it is important to think about how you will get your tax returns prepared and filed. Making the right decisions can save you time and money. If you want to protect your refund, be sure to choose electronic filing with direct deposit of your refund and avoid high-cost refund anticipation loans.