• 
• CLASS
• JOBS
• AUTO
• HOMES

It’s tax time: State and feds want you to file on-line

JANESVILLE — Add line seven to line 79, divide by three and then calculate your dependent grandmother-care credit.

If your grandmother is still alive and running a yoga studio out of your home, see table on page 125. If she’s gone to her great reward, run around your home three times, then put “0” in the box.

Grandmothers aside, filing your taxes doesn’t have to be difficult.

Starting Tuesday, the Wisconsin Department of Revenue will offer free tax assistance at Hedberg Public Library in Janesville. After Feb. 1, the Volunteer Income Tax Assistance (VITA) program will offer help to seniors and low-income people at senior centers and other sites.

This year, both the state and federal government encourage people to file electronically.

“It’s easy and fast and accurate and safe,” said Christopher Miller, spokesman for the IRS. “Here’s another thing that often slips through the cracks: People making $57,000 or less can e-file for free. That covers about 70 percent of people across the country.”

Here’s something else people might not realize:

“Regardless of their income, most people can file for free,” Miller said. “That’s because we’ve put more forms online.”

About 78 percent of Wisconsin taxpayers filed electronically, placing the state fifth nationwide.

Both state and federal officials also want to highlight new tax breaks and traditional benefits that aren’t always used.

Check out these E-filing basics:

State e-filing details

-- Anyone can e-file their state taxes for free by going to www.revenue.wi.gov.

-- The software does the math, and you’ll get confirmation that your tax return was received.

-- Refunds or tax payments can be paid to—or withdrawn from—a bank account.

People who owe money can pick the withdrawal date. E-file refunds are received in less than two weeks; sometimes it’s only a matter of days.

-- Homestead credits can now be filed online. The required attachments must be submitted within 48 hours of e-filing, and can be sent electronically or mailed.

Federal e-filing details

-- People earning $57,000 or less can e-file for free by going to the IRS Web site at www.IRS.gov or at www.IRS.gov/freefile. They’ll be directed to free tax preparation software provided by some of the nation’s largest firms, including H&R Block.

-- Almost anyone, regardless of income, can file for free. The IRS has put more forms than ever online.

Unlike tax preparation software that “interviews” people about their financial situations with prompts, the IRS provides fill-in the blank forms. The forms will do the math.

Tax reminder from IRS

-Don’t forget the earned income tax credit.

“The IRS estimates that approximately one out of four families who qualify for the EITC fail to claim it,” Christopher Miller said.

In many cases, families leave “hundreds of dollars on the table.”

Earned income credits are for families, but single people and childless workers might be eligible for smaller amounts.

Tax reminders

Stephanie Marquis, spokeswoman for the Wisconsin Department of Revenue, offers these tax filing reminders:

Unemployment Compensation:

A new federal law goes into effect this tax season that makes an individual’s first $2,400 in unemployment compensation exempt from federal taxes.

Retirement Benefits: People 65 years old and older with federal adjusted gross incomes of less than $15,000—or $30,000 if married—may be able to subtract up to $5,000 of retirement benefits.

Homestead credit: The credit is part of the Wisconsin tax code that is used to help low-income people with housing costs.

People may be eligible for the homestead credit if they meet all the following requirements: 18 years old or older as of Dec. 21, 2009; a legal resident of Wisconsin for the entire year; household income of less that $24,500; and owned or rented in 2009.

This form is also available online.