Serving Boone, Blowing Rock, Banner Elk, and other towns of the North Carolina High Country
Founded 05-05-05

As If You Could Forget: It’s Tax Time

Story by Kathleen McFadden

For many people, preparing their annual tax returns is like Christmas shopping. No matter how many times they swear they’ll do it early next year, April 15 seems to creep up without much warning.

All those procrastinators have a little more than a week left to get their federal and state forms together, with taxes due on Tuesday, April 15.

In recent years, the main post office in Boone has not been open for extended hours on tax day. A spokesperson at the post office said he had not yet received any word about longer hours, but residents shouldn’t count on getting an April 15 postal stamp on their envelopes if they mail their returns after 5:15 p.m.

One reason the U.S. Postal Service has all but abandoned the up-until-midnight collections on April 15 is because more and more people are filing electronically.

More than 73 million Americans chose to e-file in 2006—6.9 percent more than the year before. The total number of individual tax returns in calendar year 2007 is expected to be about 136 million, and the IRS expects a record number of e-filers this year.

Last year, the State of North Carolina received more than 2.2 million electronically filed individual returns, 55 percent of the 3.98 million individual state returns filed with the Revenue Department.

How to E-File

Lots of people can file electronically for free. Tax software companies and the federal government have teamed up to offer free online tax preparation and electronic filing services to eligible taxpayers, and for the 2007 filing season, 95 million individual taxpayers will be eligible for IRS Free File. You must have an adjusted gross income of $52,000 or less to be eligible. Free services are accessible through IRS.gov.

You can also access free filing services through a state website. The Department of Revenue’s website at www.dornc.com has direct links to online tax-preparation services. Click the E-File logo on the right side of the web page.

Several companies have signed on as participants in the state’s program to provide Internet access to online tax preparation and filing, including TaxFreedom.com, TaxSlayer.com, TaxHawk.com, On-Line Taxes Inc, Average 1040.com, TaxAct, Tax$imple, 1040.com, ezTaxReturn.com; e-File Tax Returns, Inc. and eSmart Tax. These companies offer web-based applications that allow filers to prepare their tax returns without downloading software. Information about the fees is available at the different tax preparation service websites.

The N.C. Office of the Commissioner of Banks has more information at its website—www.SaveTheRefund.org—including the following:

• How to file taxes electronically for free

• How to gain assistance in preparing tax returns through Volunteer Income Tax Assistance sites

• How to find lenders that offer short-term loans

• How to shop for the least expensive refund anticipation loan and find the nearest refund anticipation loan facilitator

• How to qualify for the earned income tax credit

How To Get Help from a Real Person

Free tax preparation for seniors and low- and middle-income taxpayers is available by appointment at the Lois E. Harrill Senior Center and the Western Watauga Community Center through Tuesday, April 15. Call the L.E. Harrill Center at 828-265-8090 or the Western Watauga Center at 828-297-5195 to make an appointment and to find out what documents you need to bring.

New State Tax Credits

The North Carolina General Assembly approved a number of new tax credits that are effective for the 2007 tax year and can be claimed on this year’s tax returns:

• Volunteer firefighters and rescue squad workers who attend 36 hours of drills, training or meetings during a year can take a $250 tax deduction.

• Taxpayers who are eligible for the federal tax credit for adoption expenses are also eligible for a state tax credit. The state tax credit is equal to 50 percent of the federal tax credit and has a maximum amount of $5,695.

• Families that purchased long-term care insurance can take a credit of 15 percent of the premiums paid during the taxable year. The credit is limited to taxpayers earning less than $100,000 for a married couple, and up to $350 is allowed for each long-term care insurance contract.

Don’t Forget That Stimulus Payment

Beginning in May, the U.S. Treasury will begin sending economic stimulus payments to more than 130 million households. To receive a payment, you must file a 2007 federal tax return. Millions of retirees, disabled veterans and low-wage workers who usually are exempt from filing a tax return must do so this year to receive a stimulus payment. The other two qualifiers are a valid Social Security number and $3,000 of income.

Eligible people will receive up to $600 ($1,200 for married couples), and parents will receive an additional $300 for each eligible child younger than 17.