File Taxes For Free; Take Advantage of Those Tax Credits

Avail of numerous free tax filing services around town and be sure not to miss out on tax credits and deductions if you qualify. Remember, this year the deadline for filing individual returns for 2010 was extended by three days to Monday, April 18, due to the Emancipation Day holiday. 

“There are three areas of broad appeal where individuals can maximize their refunds –energy, education, and healthcare,” said Thomas F. Scanlon, CPA and CFP at accounting firm Borgida & Co. on East Center Street.

 Energy Tax Credit

“Anyone who put energy saving appliances in the house can claim energy tax credit of not more than $1,500 for both 2009 and 2010 combined,” he said.

Per the federal Energy Star program guidelines, products that qualify for a tax credit should have been purchased between January 1, 2009 and December 31, 2010. Look for the Energy Star label in your appliance if you’re unsure. Credit for all home improvements include roofing, insulation, HVAC and water heaters, and is applicable to individuals at all income levels.

Education Tax Credits and Deduction

“There are a couple of tax incentives for education. See if you’re eligible for the Lifetime Learning Credit of up to $2,000 or the American Opportunity Credit of up to $2,500, which replaced the HOPE credit,” said Scanlon. “A tuition fee deduction with a cap of up to $4,000 is also available. All of these incentives do have income restrictions.”

Changes In Health Insurance Deduction

“This year, self-employed persons can avail themselves of a health insurance deduction, so they can reduce social security tax,” said Scanlon.

Starting in tax year 2010, individuals who are self-employed could qualify for health insurance deduction to reduce their social security self-employment tax liability. Taxpayers can now reduce the net earnings from self-employment, which is subjected to 15.3 percent social security self-employment tax, thereby accruing savings.

Free Tax Preparation Assistance

Free services are provided to seniors aged 60 and above as well as mid to low-income families by Tax-Aide, a collaboration between the AARP and the IRS, at the .

• 549 East Middle Tpke.
• Phone: 860-647-3211
• Eligibility: Seniors (need not be a member at the center); Middle and low-income families
• Days: Monday, Tuesday, Wednesday, Friday
• Timings: 1:30 p.m. to 3:30 p.m.
• Appointment: Not required. First come first serve basis.

Volunteer Income Tax Assistance (VITA) is provided by CRT-Manchester Human Services at two locations in Manchester. Assistance in preparing both state and federal taxes is offered to individuals with income of under $50,000 annually.

• Weiss Center, 479 Main St.
• Phone: 860-829-4357
• Eligibility: Individuals with an annual income of under $50,000
• Appointment: Please call and schedule
• Location: , 60 Bidwell St., Lowe Building, Room L2333
• Phone: 860-647-6106
• Eligibility: Individuals with an annual income of $50,000 and less
• Appointment: Please call and schedule

A basic federal tax return is provided by H&R Block through Feb. 14 at the below three locations:

• 374 A, Middle Tpke.
• Central Manchester
• Phone: 860-646-5440
• The Plaza at Burr Corner
• 1131 Tolland Tpke. 
• Central Manchester
• Phone: 860-647-1661
• 194 Buckland Hills Dr.
• Central Manchester
• Phone: 860-644-7195

Employment-related Taxes: Karen Messer of H&R Block advises individuals to take full advantage of the Tax Relief Act of 2010, under which taxpayers get a two percent raise in 2011. Additionally, unlike the year before when the first $2,400 received in unemployment benefits was exempt from taxes, individuals who are unemployed must file returns on all their benefits.

Individuals Without Social Security Number

The IRS website lists two acceptance agents in Manchester who are authorized to provide assistance to individuals who require a Taxpayer Identification Number (TIN) so they can pay their taxes. This option is for individuals who do not qualify for a social security number. “Most of the time people who file under a TIN get refunds – such as the $1,000 child tax credit,” said Golbert A. Isern, an acceptance agent located at Jeffrey Alan Drive.

Acceptance Agent Locations in Manchester:

• Golbert A. Isern
• d/b/a Taxes Servicios
• 37 Jeffrey Alan Dr.
• 860-432-2172
• H&R Block Tax Service                                           
• 374A W. Middle Tpke.
• 860-648-4080

Tax Relief; Tax Credits – Town of Manchester

Seniors aged 65 and above as well as homeowners with disabilities could qualify for a reduction in property taxes under the federal Homeowner Tax Relief Act. Individuals may apply from Feb. 1 through May 15. Call the Town of Manchester at 860-647-3016 for details.

If you’re aged 65 and above and have volunteered a minimum of 50 hours per each application period, you could apply for a tax credit of up to $500. Contact Human Resources, Town of Manchester, at 860-647-3092.

Tax Software

Luke Morel, a technician at the  on Pavilion Drive, said 10 to 30 customers visit the store each day to enquire about tax software. Regular updates are released for a period of time.

“TurboTax sells the most. It’s user-friendly and easy to set up on the computer,” Morel said. Comparable product offerings include H & R Block ‘At Home Tax Software’ and Quicken’s tax preparation.

The store is currently offering a discount of $10 for TurboTax and $15 for Quicken tax software. Most brands are sold online as well and are available on both Windows and Mac operating systems. While a variety of products offer free federal tax preparation and e-filing, users must pay for filing state taxes.

Individuals earning less than $58,000 annually could use one of 16 free federal tax preparation software offered via www.irs.gov.