Frugal Family: Ferndale Center Offers Free Tax Preparation

Have you done your taxes yet?

It's a common question this time of year, and it often comes along with talk of various websites for filing online and questions about what is or isn't a legitimate deduction.

If you're feeling a little overwhelmed by the process, know that you're not alone. According to Brian Foster, supervisor for the , most people would benefit from getting help with their taxes.

“It's always better to have an actual person doing your return,” Foster said.

The Ferndale-based Oakland Neighborhood Tax Center is a nonprofit organization that provides free services for low- and middle-income families, including tax filings and credits, utility assistance, direct deposit services, benefits screening and assistance with Internal Revenue Service issues.

The center offers free tax preparation — “basically everything that your H&R Block does, but for free,” Foster said — for anyone whose income is less than $25,000 for a single person or less than $50,000 for a married couple, family or single parent.

Foster said the center, located at 1956 Hilton, has about a three-week wait. “Spots are filling up,” he said.

Residents who are interested in the center's services can call 866-673-0873 or visit accountingaidsociety.org.

Tax-time tips

• Congress did not extend the two-year Making Work Pay credit, which provided a $400 credit to working people. “That did go away,” Foster said. “If their income is exactly the same, they can expect to get $400 less this year. That's really the biggest thing that went away this year.”
• You can claim a credit for the rent you pay, Foster said. “That might be something that people are unaware of,” he said. You can also deduct tuition, mortgage interest and energy-efficient home improvements, he said.
• Avoid tax refund anticipation loans, Foster advised, pointing out the high fees often involved. “We try to steer our clients away from that,” he said.
• Before you make an appointment, make sure you have all your W-2s ready — these had to be mailed by your employer by Jan. 31, so people should have everything they need by now, Foster said. Also have information and Social Security cards for yourself and all dependents, he said.
• Not sure if something qualifies as a deduction? Bring in the receipts, Foster said. “It's always a good idea to bring it in and ask your tax preparer,” he said.
• File on time to avoid penalties. Even if you file an extension, you must pay any amount owed by the April 17 deadline to avoid penalties, Foster said. “People think if you file an extension, that gives you an extra six months to pay your taxes,” he said, but that is not the case.
• There are a lot of online sites that people can use to file their taxes electronically, but Foster said it's almost always better to have a tax preparer personally handle it. If your return is pretty simple and straightforward, filing online could work for you, Foster said, but if you have children or multiple deductions or educational expenses, it's best to get help from a tax preparer.