How to Save Money at Tax Time
Find out if you are eligible for the EITC tax credit
The Earned Income Tax Credit (or EITC) is a tax credit for people who work, but do not earn high incomes. Taxpayers who qualify and claim the credit could pay less federal tax, pay no tax, or even get a tax refund. You could be eligible for an EITC refundable tax credit between $464 and $5,751.
Learn more at:
http://eitcoutreach.org/the-eic-estimator
http://www.irs.gov/individuals/article/0,,id=96406,00.html
Have your taxes prepared at a VITA tax site
Volunteer Income Tax Assistance (VITA) sites are sponsored by the IRS and provide free tax preparation assistance for low-to-moderate income taxpayers during tax season. VITA sites can be found at libraries, community centers, and nonprofit and government offices.
Take advantage of special services from PNC Bank at our VITA tax sites
The Money In Your Pocket Coalition and PNC Bank have partnered to offer you two safe and convenient ways to deposit your tax refund:
PNC Check-Cashing Services:
If you have your income taxes prepared at one of our tax sites, PNC Bank will cash your IRS refund checks free of charge at select bank branches. Information will be provided during your tax preparation appointment.
PNC Tax Refund Card ®
Instead of waiting for your tax refund check to arrive in the mail, you can have your refund directly deposited onto a PNC Tax Refund Card®. This card is a Visa debit card. Your refund will be available to you as soon as the IRS issues it and there’s no fee to use the card at merchants that accept Visa debit cards or at any of PNC Bank’s ATM locations. There are also no credit checks required to obtain the card. Everyone who has his/her taxes done at a MIYP tax site qualifies.
Open a bank account
If you don’t have a bank account, open one up to take advantage of direct deposit. You can use a savings account to receive your tax refund, and perhaps save some of it for a down payment on a house or car, or to build a nest egg.
E-file and use direct deposit
To speed up your tax refund, file your tax return electronically. Tell the IRS to deposit the refund directly into your bank account- you can provide your account number right on your tax return. You’ll receive your refund in 7-14 days this way, without paying any fees or incurring any loan costs. Our tax sites can file taxes electronically and use direct deposit.
Wait a little longer
Do you really need to get cash from your tax refund today? Can you wait a few weeks-and save $100 or more? If you have an urgent bill, ask the lender for more time until your tax refund check arrives from the IRS. Don’t take on a costly new loan to pay for an old bill.
Avoid check-cashing services
Check-cashing services charge an extra fee (usually between 3-7%) just to cash your rapid anticipation loan or tax refund check. This means that if you receive a $2,000 tax refund, it’ll cost you an average of $60 to cash it --- on top of the rapid refund and tax preparation fees you’ve already paid. A smarter move is to use a bank account.
Or receive a voucher for free check cashing of your refund, which is valid at select PNC bank locations. This voucher is available for taxpayers using our free tax preparations services.
The national Consumer Law Center provided this valuable information (www.nclc.org)