VICENZA -- Tax Season is here again! The USAG Italy Tax Center officially opens immediately following the opening ceremony Feb. 1 at 9:30 a.m. The Grand Opening will take place at the Judge Advocate General office, Building 241, on Caserma Ederle. It's located on 6th Street, past the Car Care Center, and is the second to last building on the right.
Any military ID cardholders, including Soldiers, family members, Department of Defense civilians, and retirees are welcome to use the free tax preparation and e-filing services at the Tax Center.
Camp Darby also has this free tax preparation service at the JAG office. Wage and earning statements (W-2s) are available for Soldiers via MyPay at www.mypay.dfas.mil. Other important tax documents should also become available to you this month.
In 2015, the Vicenza Tax Center assisted over 2,000 tax filers, saved the military community more than $500,000 in tax preparation fees, and generated over $5.45 million in refunds.
Filing deadline for tax year 2015 is April 18, 2016. However, overseas filers receive an automatic filing extension until June 15, 2016. It is important to note that the extension to file is NOT an "extension to pay." In other words, if you owe money to the IRS, you should file your tax return and pay any balance due by April 18. If you are entitled to a refund, or do not owe anything, you can file by June 15.
Hours of operation
Two offices are available for tax preparation services in the Vicenza area: the JAG office on Caserma Ederle and Del Din Siegholz Center, Room 1005. The Ederle office is open Monday through Friday from 9 a.m. to 4 p.m. (open through lunch), and Del Din is Monday, Wednesday, and Friday from 9 a.m. to 4 p.m., but closed for lunch.
If your return is simple, walk-in at any time and have your return prepared, explained, and signed right then and there. However, you will need to make an appointment if any of the following scenarios apply: you have rental property; capital gains; received self-employment income; claiming foreign income exclusion; need to amend a prior year's return; you would like to itemize your deduction; you have received a letter from the IRS; or you are a resident of Puerto Rico. Tax center personnel will request that those individuals drop off documents at least a couple days ahead of your appointment.
Things you will need
Preparing tax returns requires a lot of documents. You should come prepared with the following:
Military ID card
W2s
1099 and 1098 forms
Social Security Cards for yourself, your spouse, and all dependents (or a way to prove your social security numbers)
Copies of 2014 returns, if available
Bank account information with routing and account numbers
Power of attorney if you are married filing jointly and your spouse is not present
Identity theft PIN if the IRS assigned one to you, your spouse, or any of your dependents
Often, special situations arise that will require additional documentation in order to complete a file a return. For example, if you're married, and your spouse is not a U.S. citizen or legal resident, your spouse must have an Individual Tax Identification Number (ITIN).
If your spouse does not have an ITIN, you will need to apply for one. Tax center personnel will be happy to assist with this, but you will have to file a paper return.
Another issue that may arise is if you are planning to claim a dependency exemption for a child for whom you are not the primary custodial parent, you must have a signed written declaration (form 8331) from the custodial parent releasing his or her claim to the exemption, or a divorce decree or court document stating as such.
New for 2015
Every year brings new changes to the tax laws, whether it is a simple increase to the standard deduction (it went up this year), or a brand new tax credit. Below are some changes that may affect you, as well as a few reminders. For a complete list of updates and changes, you can refer to the IRS website at http://www.irs.gov.
Enhanced Child Tax Credit. This credit provides $1,000 per child under age 17. For many taxpayers, the credit can be refundable, meaning it can produce a refund even when the taxpayer owes no tax. In 2009, Congress expanded the refundable credit by reducing the income threshold at which it could be claimed. Now the lower threshold has become permanent.
Educators' deduction. Congress made permanent the $250 deduction for unreimbursed educator expenses, and also sweetened it a bit. The deduction amount will now be indexed for inflation (it had not changed in years). Starting in 2016, K-12 teachers can deduct the cost of professional development courses. Counselors, aides, and principals can also claim the deduction, though aides must have worked at least 900 hours a year.
American Opportunity Tax Credit. In 2009, this credit replaced the Hope Scholarship Credit. It was slated to expire in two years, but now it is permanent. No wonder. In 2013, 10.4 million federal taxpayers reaped $9.25 billion from this credit, or about $890 each.
State returns
If you are a United States citizen working overseas for the United States government -- whether you are a Soldier or a civilian employee -- you are still a legal resident of one of the fifty states or U.S. territories.
If you have any questions about residency, we are happy to answer any questions about that.
Unless you are a resident of a state that does not require you to file an income tax return, or does not have income tax at all, you will be required to file one based on your residency. We will help you file your state tax return as well.
Gobbledygook?
Has much of this article been confusing or referencing terms you don't understand? Don't worry!
Tax center personnel are trained and ready to help with tax returns and explain, line-by-line, what everything on the tax return means.
They are trained, knowledgeable, and certified by the IRS to prepare your tax returns and to ensure that customers understand.
If your tax refund is not quite what you expected, or you owed taxes, we can refer you to a Legal Assistance Attorney to help you plan and prepare for future tax years.
For any questions or for more information, you can call the Tax Center at DSN 634 7316; comm. 0444-71-7316.
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