Frequently Asked Questions About Participating Organizations - Who is AARP Tax Aide? - Who are the volunteers? Can I trust them? - What other organizations are working with you? Earned Income Tax Credit (EITC) - What does EITC stand for? - What is the Earned Income Tax Credit? - What is the Advance EITC? - How do I know if I qualify? - How much money can I get back? - What if I think I qualified last year but didn’t claim my EITC? - How much money is unclaimed in Duval County? Free tax preparation - What will you do for me at a free tax preparation site? Where are the tax preparation sites, and what are the hours of operation? - When does electronic filing begin? - What if my children are grown but are still dependents? - What do I need to bring? - What if I have my own business? Free financial classes - Who do I call to sign up for financial classes? - What are the financial literacy modules that will be taught? - When are the next classes scheduled? Individual Development Accounts - What does IDA stand for? - What is a “savings match?” - Why would anyone give me free money? - Is there more to an IDA Program than just savings matches? - Am I eligible to participate? - What will I be required to do? - What additional support is available to me while in the program? - Where will my money be deposited? - What if I need to withdraw my money from savings for an emergency? - Can I change my “saving” goal while in the program? - How do I receive matching funds? - Can my spouse participate in this program? - Will my participation in the IDA program affect my eligibility for other benefits? - What happens if I am not ready to acquire my goal within the two-year period? - Who offers this program in Northeast Florida? - How can I apply to participate? Who is AARP Tax Aide? • AARP Tax Aide is a volunteer group funded by the IRS that prepares tax returns for free and gives special consideration to citizens who are 60 years and older. Who are the volunteers? Can I trust them? Volunteers for the Real$ense Prosperity Campaign—whether they are making a presentation, teaching a financial education class, or preparing taxes—are from all sectors of the Northeast Florida Community: Local non-profit agencies Local, State and Federal government agencies Local businesses Local churches Local colleges and universities Local small businesses All of the volunteers have been through a thorough training conducted by either AARP Tax AIDE or the Internal Revenue Service. What other organizations are working with you? The Real$ense Prosperity Campaign is a purposeful collaboration of agencies, government, educational, non-profit, and other organizations. For a complete list of participating organizations click here What does EITC stand for? “EITC” stands for Earned Income Tax Credit. What is the Earned Income Tax Credit? Earned Income Tax Credit is an amount that has been set aside by the Federal Government and is designed to aid lower-to-moderate income workers. It is a "refundable credit," instituted in 1975 that can potentially be larger than the amount of taxes withheld from a qualifying worker's paycheck. Target Audience - Earned Income Tax Credit: Family/single w/no child, income < $14,590 – Refund up to $ 428* Family/single w/1 child, income < $35,241 – Refund up to $2,853* Family/single w/2 children, income < $39,783 – Refund up to $4,716* *Numbers are for married filing jointly; for income limit for single, subtract $2,000 What is the Advance EITC? An employee who expects to be eligible for the Earned Income Tax Credit (EITC) and expects to have a qualified child is entitled to receive EITC payments, called Advance EITC, with his or her pay during the year. The employer adds the EITC payment, up to a maximum of $1,750 (or a maximum of $14.83 per month for 12 months) for 2008, to the employee’s net pay for the pay period. The employee must fill out an IRS form W-5. How do I know if I qualify? To qualify for the earned income tax credit, you must meet one of the following criteria: If you lived with more than one qualifying child in 2007 and your family earned less than $37,783 ($39,783 – married, filing jointly) OR If you lived with one qualifying child in 2007 and your family earned less than $33,241 ($35,241 – married, filing jointly) OR If you had no children living with you in 2007 and you earned less than $10,590 ($12,590 – married, filing jointly) How much money can I get back? Filing Status Number of Dependents Total Family Income EITC Refund COULD BE AS MUCH AS - Married, filing jointly OR - Head of Household OR - Single (*$37,783 total income) 2 or more $39,783* $4,716 - Married, filing jointly OR - Head of Household OR - Single (*$33,241 total income) 1 $35,241* $2,853 - Married, filing jointly OR - Head of Household OR - Single (*$10,590 total income) 0 $12,590* $428 What if I think I qualified last year but didn’t claim my EITC? Amended returns can be filed for up to three years back. In 2008, amended returns can be filed for 2006, 2005, and 2004. What will you do for me at a free tax preparation site? At one of our free tax preparation sites, you will get: Free tax preparation by IRS-trained volunteer preparers with no fees or hidden charges. That means that if you use this service, you are able to keep every penny of your refund--as opposed to those who pay predatory lending fees to have their taxes done at organizations offering instant refunds or refund anticipation loans. Electronic-filing, so that refunds can be obtained within ten business days or fewer from the filing date. Free Financial Education to help you access classes that will teach you how to open or maximize a bank account, build up a good credit rating, become a first time home owner, further your education, or start your own small business. Where are the tax preparation sites, and what are the hours of operation? For a list of locations offering free tax preparation services click here What if my children are grown but are still dependents? You may still qualify. Disabled adult children, or other relatives like nieces and nephews (whether or not disabled), parents, foster children, and other persons may qualify as a dependent. As long as the other requirements, such as income and investments are met you may still qualify. What do I need to bring? Proof of a valid social security number for yourself and your children (or other dependants) All income statements, including W-2, 1099, and other such documents Official documents proving qualified deductions (such as child care credits, higher education credits, etc,) Any bank routing information to have your refund deposited electronically What if I have my own business? Unless your tax requirements are very simple, as in a sole proprietorship, our service is probably not the best resource for you. Who do I call to sign up for financial classes? Call the person indicated for each class on the class list. ::More To register for Money Smart classes: Saturday classes – Wanda Davis; Jacksonville Urban League, 904-366-3470 Evening/Workplace – Anita McKinney; Duval County Ext. Agency, 904-387-8850        OR Ron Williams at Northeast FL Community Action Agency, 904-398-7472, ext. 219 To register for Credit When Credit is Due, call Family Foundations at 904-396-4846. To register for Get Checking classes call Anita McKinney at the Duval County Ext. Agency, 904-387-8850 What are the financial education modules that will be taught? The financial information being taught in the Money Smart series includes the following: Bank On It – an introduction to bank services Borrowing Basics – an introduction to credit Check It Out – how to choose and keep a checking account Money Matters – how to keep track of your money Pay Yourself First – why you should save, save, save Keep It Safe – your rights as a consumer To Your Credit – how your credit history will affect your credit future Charge It Right – how to make a credit card work for you Other financial class options are Get Checking and other classes offered by Family Foundations and the Jacksonville Urban league, including “Credit When Credit is Due”. When are the next classes scheduled? See class list here What does IDA stand for? IDA’s, or Individual Development Accounts are special matched savings accounts designed to help you with your dreams of owning a home or small business or getting a post-secondary education. What is a “savings match?” A “savings match” is a promise to supplement your savings deposits at a specific rate. This program matches every dollar you save with another 2 dollars. You can save up to a maximum of $2000 and receive an additional $4000 in matched funds. Why would anyone give me free money? This is not a giveaway. You earn savings matches by saving your own hard-earned dollars and taking other steps to prepare for the future, like attending personal finance workshops. This same thinking has been behind government initiatives like the GI Bill. Is there more to an IDA Program than just savings matches? Absolutely; you will need more than just cash to become a successful homeowner, entrepreneur or college student. For this reason, you will attend a personal finance and money management workshop series and a special asset-specific preparation program. These workshops are designed to help you with your personal and financial skills that are essential to long-term success. Am I eligible to participate? There are two separate income criteria used for determining eligibility. The IDA Program is open to individuals or families who meet the following criteria: Target Audience - Individual Development Accounts Household Size Income Limit 1 $ 20,800 2 $ 28,000 3 $ 35,200 4 $ 42,400 5 $ 49,600 6 $ 56,800 7 $ 64,000 8 $ 71,200 OR Anyone within 200% or below the current guidelines. (i.e. one person household makes up to $20,420) Participants must currently be employed. Earned income can come from traditional wages or from some form of self-employment What will I be required to do? You are asked to: Make monthly savings deposits of at least $15 Save in the program for at least 6 months (maximum of 24 months) Attend and complete a personal finance and money management workshop series Participate and complete asset-specific ownership preparation training Support other employees through on-going peer support meetings What additional support is available to me while in the program? You will receive counseling along with assistance to help you open accounts, establish saving priorities, deal with credit issues, train for specific goals, and eventually obtain that goal. Where will my money be deposited? Currently, your money will be deposited with a major bank that has an agreement with the program. Your account will not be assessed any monthly service fees. What if I need to withdraw my money from savings for an emergency? Because IDA’s are intended to help you with the purchase of a home or business or to help pay for college withdrawals for other reasons are strongly discouraged. However, in certain emergency situations you may withdraw some of your money before you reach your goal. Such withdrawals would not include savings matches. At any time you may close your account, withdraw from the program and receive all of your savings and earned interest Can I change my “saving” goal while in the program? Yes, an individual may be allowed to change their goal. However, in order to receive matching funds you will have to achieve your goal. If you have sufficient time to complete the required training associated with the new goal and meet that goal, you will be given permission to change the goal. How do I receive matching funds? Matched funds will be made available to you when you are ready to purchase your asset. At that time a check will be issued directly to the company or institution furnishing all or a part of your asset. Can my spouse participate in this program? Yes, a household can open two accounts, therefore becoming eligible for up to $8000 in matching funds. Will my participation in the IDA program affect my eligibility for other benefits? No, the IDA account is not considered when determining eligibility or benefit levels for any federal benefit program. Who offers this program in Northeast Florida? Real$ense partners Family Foundations at 904-396-4846 Northeast Florida Community Action Agency at 904-398-7472 How can I apply to participate? Contact the lead organizations Family Foundations at 904-396-4846 Northeast Florida Community Action Agency at 904-398-7472