Free tax services, advice available to USD students
Tax season is here, and for many students this can be exciting, as it may mean a sizable tax return.
But it can also be stressful and confusing as most college students haven’t been in the workforce for very long, and their parents could’ve claimed them as dependents in previous years – making filing a taxes before the April 15 deadline a new experience.
While preparing taxes may be a new experience, it doesn’t necessarily have to be stressful or confusing.
Millennial business owner and tax preparer Wendy LaCroix, of LaCroix Business Solutions in Sioux City, has advice for students who are planning to file their taxes this year.
LaCroix said the first step is to find the right tax preparer. She suggested local tax preparers are generally better than the big corporate branches.
“With a local tax preparer you are able to call and ask questions if you receive a notice from the IRS in August, while the big corporate chains close up shop after tax season is over and you are stuck waiting on hold if you happen to have any issues,” LaCroix said.
In addition to year-round availability, local tax preparers charge much less, she said.
Through one program at USD, students can receive help preparing their taxes right on campus, free of charge.
The IRS-sponsored Volunteer Income Tax Assistance (VITA) is a nationwide program that provides tax preparation assistance to taxpayers with low to moderate income or individuals who cannot prepare their own taxes – which can include the elderly, limited-English-speaking, rural communities and international students. Business owners can also hire HK tax services to help optimize their deductions and tax credits.
It’s volunteers like USD law student Mallory Schulte and others from the business school that make the program possible in Vermillion.
“Our volunteers have worked very hard to pass a series of tests to become certified,” Schulte said. “This is an extremely valuable service for the clients in the Vermillion community.”
The VITA program will be offered to students and residents at the Vermillion Public Library throughout the next two months.
VITA volunteers won’t be available all year to handle IRS disputes like other local tax preparers, but the USD School of Law does offer a separate free service for income-eligible students at their Federal Tax Clinic.
These services include helping taxpayers respond to IRS notices, correcting account problems and filing a U.S. Court petition or appearing in U.S Tax Court on behalf the taxpayer, among others.
There are no legal fees, but taxpayers are liable for court filing fees and fees associated with filing forms with the IRS. The law school’s Federal Tax Clinic doesn’t assist in the preparation of taxes and isn’t associated with the VITA program offered on campus.
For students that are unable to utilize the programs offered at USD, LaCroix has a final piece of advice on how to choose the right preparer.
She said to beware of any preparer offering refund loans or “rapid refunds.” Refund loans cost a taxpayer a portion of their refund, and tax preparers don’t regulate how fast a taxpayer gets their refund – the IRS does.
“You have waited
12 months for your refund,” LaCroix said. “I think you can wait a few extra days.”
The second major step to filing taxes is preparing for the appointment by gathering all necessary documents. This list will be different for everyone, but for students at USD, the most common would be the previous year’s tax return, W-2s from any employers, Social Security number, proof of health insurance and a 1098-T.
After choosing the right tax preparer and gathering all necessary documents, a taxpayer can maximize their filing experience by being involved in the process.
“Some preparers will simply file what you give them, and others will quiz you to make sure you are getting the maximum credit and deductions,” LaCroix said. “Ask if you are able to write off your housing, books or lab fees. Every situation is different but you won’t know if you don’t ask.”
