1. Tell us about the VITA program. How do you and your team facilitate this program during tax season?
Volunteer Income Tax Assistance (VITA) is a program that offers tax-preparation assistance to hundreds of taxpayers in the community, while also assisting with budgeting and overall financial literacy. In order to offer this service to our community, we must complete the Interview Intake Exam, Standard of Conducts Training, and the Basic & Advance Tax Preparer Training, which starts in November each year. Classes can be completed in person or virtually with Site Supervisor Kathy Dixon.
2. What does your tax prep process look like?
Those filing taxes with us would drop off their paperwork at the site. My staff and I assist with the intake/interview and the quality review sheet process. Once completed, we collect their tax information, including their W-2, 1099, 1098, & 1095. We then make copies of their picture ID, social security cards or ITIN letters.
3. How does your team help people with their tax goals?
If they owe taxes, we show them how to utilize the IRS Tax withholding calculator, a tool used to estimate the federal income ax you want your employer to withhold from your paycheck. We also advise them to adjust their W-4 as needed.
4. How can folks reduce their tax bill?
By checking their tax withholding with the IRS Tax Withholding Estimator.
5. Which is better: a tax credit or tax deduction?
Tax credits are typically considered to be better than tax deductions because they directly reduce the tax you owe.
6. What kind of deductions do you recommend people to apply for?
Mortgage interest, charitable contributions, student loan interest, IRA contributions, property taxes, state taxes paid, health insurance premiums, HAS contributions, & American opportunity tax credits to name a few.
7. What is the difference between marginal and effective tax rates?
Your marginal tax rate corresponds to the highest tax bracket your last dollar of taxable income falls into. Your effective tax rate is the average rate of tax you pay on all your income and is usually always lower than your marginal tax rate.
8. How can people stay up to date with tax laws and changes?
By signing up for e-News for tax professionals to get the latest information affecting the tax professional’s community. You can also join the conversation on the Return Preparer Office Facebook page. Also, make sure to follow @IRSTaxPros on X.
9. Why do you participate in the VITA program each year?
This is an excellent program for low to moderate income individuals. I have worked in branches for many years, and this is one of the best ways to connect with the community. It is a vital resource that many of our patrons that return to our VITA site year after year appreciate. We also work with many seniors on a fixed income and paying to have their taxes prepared is a financial hardship for them. The VITA program gives us the opportunity to educate individuals on taxes while deepening relationships and creating a culture in the community in which we live and serve in.
10. Anything else?
Volunteering allows me to connect to my community and make it a better place. It truly is rewarding to provide this service to others, and it gives me a sense of gratitude and appreciation, both given and received.