Danville and Pittsylvania County residents who earned less than $51,000 in 2012 can have their taxes prepared and filed electronically free of charge — a $100 savings — through the IRS Volunteer Income Tax Assistance Program sponsored by the BEST Initiative.
BEST — Building Economic Success Together — helps families claim the Earned Income Tax Credit, which targets the “working poor” and offers refunds up to $5,891 for families with three or more qualifying children.
The goal of the credit is to reduce the tax burden on lower income workers, supplement wages, and encourage greater participation in the workforce, coordinator Gaynell Merricks said.
Merricks works for Pittsylvania County Community Action Inc., which is a key partner in the BEST Initiative.
Funded with a grant from Danville Regional Foundation, BEST was created to promote family self-sufficiency, put more money in the pockets of working families, and boost the economy in Danville, Pittsylvania County, and Caswell County, N.C.
In addition to PCCA, partners include United Way of Danville-Pittsylvania County, Virginia Legal Aid Society, Danville Division of Social Services, and Caswell County Senior Services, United Way of Caswell County, Telamon Corp., Carter Bank & Trust, and URW Community Federal Credit Union.
The tax prep program also receives funding from the Internal Revenue Service and Virginia Community Action Partnership.
To qualify for the Earned Income Tax Credit, families’ 2012 adjusted gross income must be less than:
$45,060 ($50,270 married filing jointly) with three or more qualifying children;
$41,952 ($47,162 married filing jointly) with two qualifying children;
$36,920 ($42,130 married filing jointly) with one qualifying child;
$13,980 ($19,190 married filing jointly) with no qualifying children.
Maximum tax credits for 2012 include:
$5,891 with three or more qualifying children;
$5,236 with two qualifying children;
$3,169 with one qualifying child;
$475 with no qualifying children.
According to Merricks, even workers who don’t have federal taxes withheld from their paychecks can qualify for a refund. To receive a refund, however, workers must file a federal tax return.
Refunds are based on income and family size, and don’t affect Medicaid, Social Security, food stamps or federal housing assistance, Merricks said.
Last year, volunteers prepared 1,869 federal tax returns and helped residents claim more than $2 million in refunds. Refunds averaged $1,400.
BEST hopes to prepare 2,200 federal and state returns in 2013.
Thirty volunteers have been trained and certified in basic tax preparation and will begin preparing tax returns Jan. 22 at six sites in Danville and Pittsylvania County.
Danville sites include Southside Community Action in Piney Forest Shopping Center, United Way on Craghead Street, and Ballou Recreation Center on West Main Street.
Sites also include PCCA’s main office and Telamon Corp. on North Main Street in Chatham and Cherrystone Missionary Baptist Association on Tom Fork Road in Ringgold.
Appointments are required and may be made by calling Merricks at 793-5627.
For appointments at PCCA’s main office, call 432-8250, and for Telamon call (434) 688-4640.
PCCA also plans to hold mobile tax preparation sites at key locations throughout the city and county, the coordinator said.
To have taxes prepared, residents need to bring:
Proof of identification such as a picture ID;
Social Security cards for you, your spouse and dependents or a Social Security number verification letter issued by the Social Security Administration or Individual Taxpayer Identification Number assignment letter for you, your spouse and dependents;
Proof of foreign status, if applying for an Individual Taxpayer Identification Number;
Birth dates for you, your spouse and dependents on the tax return;
Wage and earning statement(s) Form W-2, W-2G, 1099-R, 1099-Misc from all employers;
Interest and dividend statements from banks (Forms 1099);
A copy of last year’s federal and state returns if available;
Proof of bank account routing numbers and account numbers for direct deposit, such as a blank check;
Total paid for daycare provider and the daycare provider's tax identifying number (the provider's Social Security number or the provider's business Employer Identification Number) if appropriate.
To file taxes electronically on a married-filing-joint tax return, both spouses must be present to sign the forms.
Free tax help is available through April 15.
For more information about tax credits or free tax help, contact Gaynell Merricks at 793-5627 or by email at [email protected].
Additional information also may be found at www.piedmontbest.org.
434-432-2791