IRS Gives Colorado Flood Victims More Time To Decide When To Claim Losses

***Press Release***

WASHINGTON – The Internal Revenue Service today provided taxpayers an extension until Oct. 15, 2014 to decide when to claim disaster losses arising from last September’s flooding.

The extension means that eligible individuals and businesses will now have until Oct. 15 to decide whether to claim these losses on either their 2012 or 2013 returns. Without this extension, these taxpayers would have had to make this choice by the original due date for the 2013 return, usually April 15.

Depending upon various income factors, claiming losses on a 2012 return versus a 2013 return could result in greater tax savings for some taxpayers. The extra time is available, regardless of whether a taxpayer requests a tax-filing extension for either year.

Eligible taxpayers are those who suffered uninsured or unreimbursed losses resulting from severe storms, flooding, landslides and mudslides in the 20 federally-designated disaster area counties from Sept. 11 to Sept. 30, 2013. The disaster area counties are Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Crowley, Denver, El Paso, Fremont, Gilpin, Jefferson, Lake, Larimer, Lincoln, Logan, Morgan, Pueblo, Sedgwick, Washington and Weld.

Though taxpayers who miss the new Oct. 15 cut-off will lose the option of claiming their losses for 2012, they will still be able to claim them on an original or amended 2013 return. Further details are in Notice 2014-20, posted today on IRS.gov and also scheduled to be in Internal Revenue Bulletin 2014-15, dated April 7, 2014.

Free Tax Preparation Feb 15 in Wray

Morgan Community College Wray Center, 32415 Highway 34 in Wray, will be hosting free tax preparation on Saturday, February 15 from 9:30am-3:30pm. Walk-ins are welcome on a first come, first served basis, or call 970-332-5755 for an appointment.

Free File Opens Today, Offers Free Tax Prep and E-filing

***Press Release***

           IRS YouTube Video:
           Welcome to Free File!

IR-2014-04, Jan. 17, 2014

WASHINGTON — To help people get a jump on their taxes before the Jan. 31 filing season opens, the Internal Revenue Service today announced the immediate availability of Free File brand-name software for most taxpayers.

Fourteen commercial software companies that provide their Free File tax prep products at no cost began offering their products today -- available only at IRS.gov/freefile.

Although you can complete and e-file your tax return now, the Free File companies will hold it until Jan. 31 when the IRS begins accepting returns. As previously announced, the IRS delayed the filing season due to critical system testing following the federal government closure.

“Many tax preparers and tax software companies are now open for return preparation, including Free File. If you plan to get a head start on your taxes, remember to e-file. Electronic filing will allow software companies to hold your return and to automatically send it to the IRS on Jan. 31. There is absolutely no advantage to filing by paper,” said IRS Commissioner John Koskinen. “If you want to save money and time, just use Free File to prepare and e-file your federal return at no charge.”

As Jan. 31 approaches, Koskinen reminded taxpayers that IRS.gov has a range of information and services to help taxpayers prepare their tax returns. “Free File is just one of the many services available through IRS.gov to help people with their taxes,” Koskinen said. “Additional services include Where’s My Refund for timely updates on refunds, YouTube videos with quick tax tips, and many other ways of getting information. We encourage taxpayers to explore IRS.gov as tax season approaches.”

Free File, a public-private partnership, is the free way to do your federal tax returns either by using brand-name software or online fillable forms. Free File software is available now to more than 100 million individuals and families that earn $58,000 or less, which is 70 percent of taxpayers.

Starting Jan. 31, Free File Fillable Forms will be available to accept tax returns for free e-filing from any taxpayer who is comfortable preparing their own tax return.

Nearly 40 million taxpayers have used Free File since it debuted in 2003. These taxpayers have saved more than an estimated $1.2 billion by using Free File.

Here’s how it works:

·         At IRS.gov/freefile, select the “Free File Software” button. Each of the 14 Free File companies sets specific offers – generally based on income, state residency and age – to use their software. If your income is $58,000 or less, you will find at least one, if not more, offers available to you.

·         You can review each of the 14 company offers or use the IRS “Help Me Find Free File Software” tool to find an offer that matches your situation. Once you make your selection, you will be directed to the commercial provider’s website to begin preparing your return.

·         Free File is for federal returns but most companies also offer state tax return preparation, some for free.   

·         If your income was more than $58,000, you can still do your taxes and e-file them. Just select the “Free File Fillable Forms” button. Again, this product will be available starting Jan. 31.

·         Free File Fillable Forms is the electronic version of IRS paper forms, and it is best for people used to doing their own taxes. This option helps with math but not with step-by-step assistance. Instructions for filling out the form can be found on the IRS website. State tax return preparation is not available using this option.

The fastest way to get your refund is by combining IRS e-file with direct deposit. Once the IRS begins processing returns, it expects to issue more than 90 percent of refunds in fewer than 21 days.

Check “Where’s My Refund?” for personalized refund information based on the processing of your 2013 tax return. You can start checking on the status of your return within 24 hours after the IRS accepts your e-filed return. Updates to refund status are made once a day so you don't need to check the status more than once a day.

The 14 Free File companies are part of a consortium called the Free File Alliance, which has partnered with the IRS for 11 years to make these commercial products available for free to taxpayers who don’t earn high incomes. You must access these products through IRS.gov to be eligible for their free offers.

There also are a number of products to help spread the word about Free File. Companies, organizations, churches or others that have eligible employees, clients or customers can help increase awareness about Free File. Learn more at freefile.irs.gov/partners. 

NJC’s Tax Help Colorado program returns in 2013

***Press Release***

Services open on Tuesday, January 29^th

Sterling,  Colo. – This tax season, Northeastern Junior College is once again partnering with the Denver-based Piton Foundation to provide free tax preparation assistance to low- to moderate-income families through the Tax Help Colorado program. Beginning Tuesday, January 29^th, IRS-trained Northeastern students will prepare and e-file tax returns free of charge for individuals with household incomes of less than $50,000 a year.

Tax Help Colorado has a presence on 16 college campuses and operates 27 free tax sites statewide. More than 30% of Colorado families are eligible to participate in the program, which was created to help alleviate the financial burden of tax preparation on lower-income households.

Many of these families are also eligible for tax benefits such as the Earned Income Tax Credit and Child Tax Credit, and the preparers at Northeastern’s site specialize in ensuring that taxpayers receive the refunds they deserve. In 2012, Tax Help Colorado helped nearly 7,000 taxpayers receive $13.2 million in refunds.

The service, which is quick and confidential, will be offered at Northeastern  from January 29^th to April 2^nd on Tuesday nights at Phillips Whyman Building, Room 12 from 5 p.m. to 8 p.m.  The students will also be helping prepare taxes on Saturdays, February 9^th and February 23^rd from 9 a.m. to 2 p.m.  Those who want to access this kind of help need to call (970) 521-6637 between 12 noon and 5 p.m. Monday through Friday to schedule an appointment. Walk-ins are also welcome and will be served on a first-come first -served basis.  There are several trained students in this year’s program that speak Spanish and will be happy to take care of those who need this service.   Overseeing the Northeastern tax site is NJC business professor Deb Walker and long-time accountant Maxine Dennington.

People who are getting their taxes prepared at Northeastern,  should bring the following documents:

·               All W-2, 1099s and other income-related documents.

·               Proof of mortgage interest, property taxes, daycare payments, college education expenses, charitable contributions, and all other tax-deductible expenses.

·               Social Security cards for all family members and a photo I.D.

·               A copy of last year’s tax returns, if available.

·               Bank account number and routing number to direct deposit the refund. With direct deposit, refunds are received in 7 to 10 days.

A list of all the Tax Help Colorado sites, as well as locations of other free tax assistance sites in Colorado, is available by dialing 2-1-1 (it’s a free call), visiting www.piton.org/eitc, or finding Tax Help Colorado on Facebook at www.facebook.com/taxhelpcolorado.

The Piton Foundation sponsors Tax Help Colorado as part of its efforts to help move families from poverty and dependence to self-sufficiency. Piton is a private foundation located in Denver, Colorado. It was established in 1976 by Denver oilman Sam Gary.  The Foundation  teamed up with the Colorado Community College accounting classes to establish this program, giving students an opportunity to learn tax law and the value of community service.