Taxes: Suggestions for Preventing Problems with Your Income Taxes
by: Oregon Law Center and Legal Aid Services of Oregon
1. Use a certified preparer if you need help with taxes.
Often you will have problems if you use a non-qualified tax preparer. If you pay the preparer, he or she has to sign the tax return. Some legal service offices have a list of certified and trained preparers you can use.
2. Put down your correct Social Security number on the tax return.
If you write the wrong Social Security number it may delay your refund. No one must write down a false Social Security number on a tax return. A person who cannot receive a valid Social Security number must request an “ITIN” number and write it down on the tax return. The ITIN number can be requested by filling out Form W-7. The ITIN number is only for filing your taxes and must not be used for working.
3. Do not lie to your employer regarding the number of dependents.
When you start a job, you will fill out a Form W-4 where you have to write down the number of dependents you have. The number of dependents determines, for the most part, the amount of taxes taken from your wages during the year. If you write down more dependents on the W-4 form than you really have, you will probably have to pay more when the time comes to file your taxes. It may even result in fines for you.
4. Know the difference between Credits.
Each one of the tax credits has different rules:
· Earned Income Credit (EIC): It can give you a refund of up to $4,300, even if no taxes are owed. However, to qualify, your children have to live with you for more than 6 months out of the year. Also, you and the children need to have valid Social Security numbers. If you are married, and live with your spouse, he/she also needs to have a valid Social Security number so your family can qualify for the EIC.
Note for immigrant families: If some of these family members do not have valid Social Security numbers, but are in the process of legalizing and will receive valid numbers in the future, you cannot receive the EIC now. However, when they receive the valid numbers, you can fill out a 1040X form, which is an amended return, for the last three years and receive the EIC for those years.
· Child Credit: Can grant you a maximum return of $1000 for each child that qualifies. Your family can receive the credit if they all have Social Security or ITIN numbers. You must support the children, they must be under 17 years of age, and they must live in this country.
· Dependent Exemption: You can receive this if you have economic dependents in the United States, Mexico or Canada. With this exemption, you can receive up to all the money that was taken from your wages to pay for the income tax during the year.
The requirements mentioned here are some, but not all, the requirements for these credits. For more information regarding the credits, you can call your local Legal Aid office for possible advice or representation. Go HERE for a directory of legal aid programs.
5. Keep proof of expenses.
Each year the Internal Revenue Service (IRS) denies refunds to thousands of persons until they can prove certain things, such as if they lived with and supported their children. That is why it is very important to keep receipts for rent, electricity, and other expenses. Families with dependents in Mexico or Canada should also keep any money orders or transfers sent to your dependents in those countries.
6. Do not wait after you receive a letter from the IRS.
Many times when the IRS sends you a letter there is a time limit in which you can respond. Lack of response can mean that you lose some rights. To help you understand what a letter says, you may call the IRS at the number that appears on the letter, or you can call Legal Aid Services of Oregon. Go to HERE for a directory of legal aid programs.
7. Who do I talk to if I need help with a tax problem?
The following Legal Aid offices can help with some tax problems:
· Hillsboro: 503-648-7163 or
1-888-245-4091
· Oregon City: 503-655-2518 or
1-800-228-6958
· Bend: 541-385-6944 or
1-800-678-6944
· Roseburg: 541-673-1181 or
1-888-668-9406
· Woodburn (farmworkers only):
503-981-5291 or 1-800-662-6096
· Pendleton (farmworkers only):
541-276-6685 or 1-800-843-1115
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