The Tax Center, operated by the Army installati... VIEW ORIGINAL
The Tax Center, operated by the Army installati... VIEW ORIGINAL
PRESIDIO OF MONTEREY, Calif. -- Since January, the Presidio of Monterey Legal Assistance Office's Tax Center has helped Monterey service members, military families and retirees claim nearly $700,000 in state and federal tax refunds.
Additionally, the center has also saved Presidio taxpayers an estimated $92,000 in fees compared to commercial tax preparation services.
But with 252 returns processed, to date, it's clear there are still thousands of active duty service members, families, and retirees at and around Presidio who can benefit from the Tax Center's services before the April 15 federal filing deadline.
Still skeptical? Here, we'll review some common questions -- and misperceptions -- about the military tax preparation service.
*"I'd rather trust my taxes to a professional."*
Many people assume a commercial tax preparer will do a better job - but clients don't always get more for their money, Matt Shelton, staff tax attorney for the Presidio of Monterey Legal Assistance Office and Presidio Tax Center director, said.
"This is an industry where there's a lot of fraud, and a lot of overcharging for relatively simple returns," he said.
Military volunteer tax preparers at the Presidio of Monterey get 80 hours of training from the IRS and California Franchise Tax Board -- the same training received by entry-level tax preparers working in the private sector. Volunteers are carefully screened, and are highly motivated to provide quantifiable benefits for service members and families they assist.
Mass Communication Specialist 3rd Class Brian Abel, a tax center preparer, said volunteering has benefited him because he's learned information he can use to prepare his own return. But preparing returns for others pays off in other ways. The tax center tracks the total value of returns, but also accuracy rates for individual preparers.
"I do it because it's something that will look good on my evaluations," Abel said. "And, we're helping people."
Renu Turner, a military family member and tax center client, said she learned the value of services provided at the tax center the hard way. After having her 2013 tax return prepared my a military preparer, a friend convinced her to try a commercial service.
"I got back the same amount as the year before, but it cost me $500!" she said.
*"Why does the military provide tax preparation as service?"*
It's all about financial readiness, Shelton said.
"We want to get back as much money as we can for our service members, both by maximizing their returns and minimizing their fees."
More money in your pocket means you're better prepared to tackle future financial challenges.
Ensuring your tax return is accurate and filed on-time protects you from stress, debt, and financial penalties that could distract you from your duties and negatively affect your quality of life.
"Won't I get my refund faster if I use a commercial tax preparer?"
The tax center provides electronic filing. That means with direct deposit, you'll get your refund as soon as it's released by the IRS.
Some commercial preparers offer "Refund Anticipation Loans" that advances funds the preparer expects you to receive via a refund.
But most IRS refunds are released within a week or two, Shelton said.
"You'll get your refund just as fast as any other service except a loan... (With loans,) you'll pay heavy fees to get your refund just a few days faster, at most."
*"I'd rather do my own taxes."*
Tax preparation isn't always difficult - many filers can complete the job in just a few hours, using a few simple forms.
But you may still benefit from having a trained military preparer take a second look at your documents before you file. Military families move frequently, they can find themselves filing tax returns in a new state, or even in multiple states, every year.
Moving expenses, pay allowances, and income earned during a deployment are other areas where a military advisor can help save time, and sometimes money, Shelton said.
If you're newly married, a new parent, a new homeowner, or receiving income from rental property, those changes can also make a big difference in eligibility for certain tax deductions.
*When paying a pro makes sense…*
Anyone who owns a business, has multiple rental properties, or earns income from several different states should consider hiring a tax attorney or accountant with experience in those areas.
Preparers will advise clients to seek extra help with an especially complex return, but Shelton said staff can still provide information about personal deductions, and advise what to look for - and look out for - in commercial tax prep services, he said.
Related Links:
Presidio of Monterey on Facebook
Social Sharing