At a workshop at Monmouth College Monday night, Sheri Hoff of the Illinois Department of Revenue explains changes in the state tax law to the student volunteers who will be participating in the VITA program.

MONMOUTH, Ill. — Monmouth College is again offering computerized tax preparation and e-filing at no cost to the taxpayer through the Internal Revenue Service’s (IRS) Volunteer Income Tax Assistance (VITA) Program.

For the first two weeks of the program, VITA will be available on three weeknights on campus: Feb. 1, 2, 6, 8 and 9 from 4-7 p.m. in Room 308 of McMichael Academic Hall, which is one building east of the college’s main building, Wallace Hall. Beginning the third week of February, the Thursday session will be dropped, and VITA will be available each Monday and Wednesday evening from 4-7 p.m. The Warren County Public Library (60 Public Square), which is wheelchair accessible, will hold sessions each Saturday from 1-4 p.m., beginning Feb. 4. VITA will not be in session during the college’s spring break (March 3-12). The final day of service will be April 12 on the college campus. Tax preparation is on a first-come, first-served basis.

Professor Judy Peterson, coordinator of the college’s program for the seventh consecutive year, stated that it has a two-fold purpose: service and education for the community, and citizenship and education for the students.

“The service is aimed at low- to middle-income taxpayers who cannot afford professional assistance,” said Peterson. “All ages of taxpayers are served, from students through retirees. Everyone who comes to the site is strongly encouraged to e-file. Taxpayers can expect quicker response to their filings, and the IRS can reduce its processing costs.”

The 11 students enrolled in the program will be completing IRS certification requirements in January. They have all completed the federal tax course at the college and attended workshops to orient them to the commercial software and internal control process used.

“There are not a great deal of changes for the average citizen – mostly increases in standard deductions, exemptions and tax brackets to account for the effects of inflation,” said Peterson, who attended an IRS workshop in Springfield last fall to prepare for the tax season. “There was some fine tuning to the definitions of a qualifying child and a qualifying relative for purposes of dependency exemptions and some child-related credits. We are used to seeing a lot of taxpayers at our site eligible for the EITC (Earned Income Tax Credit), so we look carefully at a tax return for which the software does not generate this credit for the particular taxpayer.”

Peterson’s students are eager to get started and put their skills and knowledge to work, she said, adding, “They are always nervous doing their first return, but once they feel the joy of processing that first return, the nervousness goes down and they can’t wait to tackle the next one. The students love working and visiting with the taxpayers. Everyone is so friendly.”

Last year the VITA program prepared or assisted with 271 federal and 265 state returns. This represented a 13 percent increase over the previous year. E-filed returns increased by 38 percent over the previous year. Since the computerized service began in 2000, the program has experienced an increase of nearly 200 percent for returns prepared/assisted and an increase of more than 350 percent for e-filed returns.

“We are certainly pleased with the success of this program and the value to both the students and the surrounding communities,” said Peterson.

In order to receive income tax assistance, individuals should bring the following:

• Social Security cards for each person listed on the return (includes taxpayer, spouse and all dependents). THIS IS REQUIRED. The only alternative would be a letter from the Social Security Administration indicating the number; or if you e-filed with VITA last year, your last year’s return containing Form 8453 (signature document) and no problems with the Social Security numbers.

• All documentation on income such as W-2s and 1099s.

• Last year’s returns. This is necessary if the taxpayer itemized last year and now has a state refund to be added back to income.

• Voided check (no deposit slips) if the taxpayer wishes direct deposit of the refund. If the direct deposit is to a savings account, a document that indicates the number is also required. The account must be in the taxpayer’s name.

• All information related to deductions (such as medical, real estate taxes, mortgage interest and charitable expenditures), if the taxpayer wishes to itemize.

• Social Security number or tax identification number of all daycare providers, if the dependent care credit is desired.

• Tax-free childcare benefits provided through an employer.

• For divorced couples, if the non-custodial parent is taking the dependent exemption, the VITA workers need Form 8332 signed by the custodial parent or copy of applicable page of divorce agreement (these must be filed with the return, whether e-filed or not).

• Information on contributions to Individual Retirement Accounts (IRAs).

• For stock transactions, the purchase date and cost basis is required, as well as sale date and sale price (note that VITA will not prepare a complex Schedule D).

When coming to the VITA site, both spouses must be present if they are going to e-file a joint return. Taxpayers must also know if they are being claimed as a dependent on someone else’s return and who is claiming the EITC for a child if parents are not filing jointly.

VITA will not be able to prepare or e-file a return for a small business (Schedules C and F – however, they can do a Schedule C-EZ for non-employee income); prepare or e-file a return for rental property (Schedule E); prepare or e-file a complex Schedule D (capital gains/losses); prepare or e-file a form 8606 (nondeductible IRAs); or prepare or e-file a Form 8615 (minor’s investment income).

For questions regarding this service, contact Peterson at 309-457-2365.

Released by the Office of College Communications
Barry McNamara, Associate Director of College Communications
Phone: 309-457-2117
Fax: 309-457-2330