Free tax assistance begins Jan. 23

  • Published
  • By Capt. Joseph Weismantel
  • 31st Fighter Wing Legal Office
AVIANO AIR BASE, Italy --  The Aviano Tax Center will be open for free professional tax preparation and e-filing services beginning Jan. 23. The Tax Center will file only 1040EZs during the first week, but appointments for other filers can be scheduled at anytime. Starting Jan. 30, filings will be by appointment only Mondays through Wednesdays and walk-ins for 1040EZ filers on Thursdays.

Last year, volunteers assisting in the program saved Aviano members nearly $200,000 in preparation fees and returned more than $2.3 million in refunds to Aviano Airmen and families.
Come prepared
Military cardholders, including Airmen, DoD civilians and retirees, who wish to use the free tax preparation and e-filing services should have all their documents, such as social security cards for all filers and dependents, prior year tax returns, W-2s, mortgage statements and receipts, ready when they meet with preparers. If taxpayers come prepared, it not only helps ensure an accurate tax return, but also enables the preparers to make sure the taxpayers are able to capitalize on all of the available deductions and credits.

Taxpayers with more complicated returns, such as those with capital gains, rental real estate income or loss, foreign earned income or foreign taxes paid or multiple state income tax returns, should take the time to ensure their documents are in order.
New additional locations to file

Beginning Jan. 24, the Tax Center will have manned drop-off sites available at:
La Dolce Vita Dining Facility, Area F (6:30-7:30 a.m. Tuesdays and Wednesdays)
Clinic Main Lobby at Area 1 (Noon to 1 p.m. Tuesdays and Wednesdays).
This service is primarily intended for those filing a 1040EZ. However, other filers may also schedule appointments during those times at those locations.

Updates for 2011: What's new, changed this year?
Every year brings new changes to the tax laws, whether it is a simple increase to the standard deduction or a brand-new tax credit. This year is no different. Below are some changes that may affect you, as well as a few helpful reminders. For a complete list of updates and changes, visit the IRS website at http://www.irs.gov .

Earned Income Credit - Taxpayers may continue to claim three children for earned income credit purposes provided they meet the income and filing status tests:
· Three or more children lived with you and you earned less than $43,998 or $49,078 for married filing jointly
· Two or more children lived with you and you earned less than $40,964 or $46,044 for married filing jointly
· One child lived with you and you earned less than $36,052 or $41,132 if married filing jointly
· No children lived with you and you earned less than $13,660 or $18,740 if married filing jointly

The annual amount of investment income to be eligible for this credit is $3,150. Taxpayers may continue to choose to include or exclude combat zone pay in earned income for the purpose of computing this credit.

The requirement that your main home (and your spouse's if filing a joint return) must be in the United States for more than half the year is waived only for U.S. military personnel stationed outside of the United States on extended active duty.

First-time Homebuyer Credit - This credit has not been extended into 2011, but still may apply if you have not yet filed a return for 2010, and purchased a home before April 30, 2010. However, you may be able to claim the credit if you entered into a written binding contract before May 1, 2010, to buy the home before July 1, 2010, and actually bought the home before Oct. 1, 2010.

If you claimed the first-time homebuyer credit in 2008, you must generally begin repaying it on your 2010 return. In addition, you generally must repay any credit you claimed for 2008 or 2009 if you sold your home in 2010 or the home stopped being your main home in 2010.

Standard Deduction - Generally, the standard deductions depend upon the taxpayer's filing status:
· $5,800 for Single and Married Filing Separate taxpayers
· $11,600 for Married Filing Jointly or Qualifying Widow(er)
· $8,500 for Head of Household

Taxpayers who otherwise would not qualify to itemize their deductions can enjoy a higher standard deduction by adding the following to the above base amounts:

Personal Exemptions: The amount for 2011 has increased to $3,700 for each exemption to which the taxpayer is entitled. However, taxpayers who have high income may lose part of their exemption amount not to exceed a one-third reduction.

Itemized Deductions: There are no major changes except that taxpayers will no longer have some of their itemized deductions limited by their adjusted gross income.
Individual Retirement Accounts (IRAs): If you rolled over, or converted part or all of another retirement plan to a Roth IRA in 2010, or made an in-plan rollover to a designated Roth account after Sept. 27, 2010, and did not elect to include the resulting taxable amount in income for 2010, you must report half of that taxable amount on your 2011 return and the other half on your 2012 return. Contribution limits for traditional or Roth IRAs remain at $5,000 ($6,000 if age 50 or older) annually.

Foreign Source Income: American citizens (and their spouses, if filing jointly) with income from sources outside the United States must report ALL income on their tax returns, whether they reside inside or outside the U.S. and whether or not they receive a Form W-2 or 1099 from the foreign employer. Taxpayers who reside outside the U.S. may be able to exclude some or all of their foreign earned income from taxation, up to $92,900 for 2011, but they must report the income on Form 2555 when they file their tax returns.

Filing Deadline April 17: The filing deadline is April 17.

For additional information, contact the Tax Center:
Hours: 9 a.m. to noon and 1-4 p.m. Monday through Wednesday, 9 a.m. to noon Thursdays walk-in for 1040EZ filers
Location: Aviano Tax Center at the Aviano Legal Office, Building 1403 (second floor, above Finance, Home Fuels, etc.)
Phone Number: DSN 632-8294; Commercial 0434-30-8294

Tax Center satellite drop-offs for 1040-EZs and appointment sign-up
Area F Dining Facility: 6:30-7:30 a.m. Tuesdays and Wednesdays
Area 1 Clinic (Main Lobby): Noon to 1 p.m. Tuesdays and Wednesdays,