Low-Cost and Free Tax Help at Local Centers

By HEATHER HADDON

It's tax time again, and all the confusing forms and jargon are back. Luckily, though, there are several tax assistance centers in the Bronx that provide free or low-cost help for low-income families and seniors.

"Taxes are complicated," said Monica Jimenez of the Community Food Resource Center, a citywide advocacy group sponsoring free tax programs in each borough. "We want people to keep their money in their pocket."

But some commercial tax preparers can make that pocket money disappear. "For the average tax preparer, it costs about $200," Jimenez said. The Center's Bronx site --nearby at the 1199/SEIU Training Center in Fordham Ñ has already saved residents over $200,000 in fees, Jimenez reported.

Commercial preparers often offer the popular Refund Anticipation Loans. The loans provide a cash advance on anticipated refunds. A recent investigation by the City Council revealed that some commercial providers do not inform clients of the high cost of the loans, or that cheaper alternatives exist.

"The failure to fully disclose all fees, especially high interest rates on Rapid Anticipation Loans to cash-strapped New Yorkers, is essentially another avenue of predatory lending," said Council Speaker Gifford Miller. "Withholding this information from customers is exploitative."

Taxpayers doing their own 1040s often overlook the credits they qualify for. "About 230,000 New Yorkers are eligible, but don't receive the Earned Income Tax Credit," which lower-income residents qualify for, according to Jimenez. That missed opportunity can cost a family as much as $5,000.

Other overlooked deductions include the Child Care Tax Credit, for child care expenses. This year, student loan interest payments can be deducted for more years. "Until this change, those repaying their loans could only deduct the interest payments for five years," said Congressman Eliot Engel in a statement. "This was unrealistic in light of the cost of college tuition. Some loans are being paid out over 10 or more years."

Understanding the credits can be difficult. "If you go on the IRS's Web site, the instructions for the Earned Income Tax Credit are 51 pages," Jimenez said. "Even experienced preparers might overlook all the details."

Many of the tax help centers also offer electronic filing, with refunds coming within 10 days. The 1199 center has already done 1,339 tax returns, and issued $2.8 million in refunds. "We've had an outstanding amount of people coming in," Jimenez said.

But slots at the centers are filling up fast, so call soon for an appointment. The following is a partial list of free or reduced-cost help for low-income taxpayers:

1199/SEIU Training Center 
2501 Grand Concourse 
Monday thru Thursday, 3 to 8 p.m.; 
Saturday, 10 a.m. to 5 p.m.
English call 1-866- WAGE-PLUS. 

Van Cortlandt Library 
3874 Sedgwick Ave. 
Thursdays, 10 a.m. to 2 p.m. 
(718) 543-5150

St. Philip Neri Church (low-cost) 
3025 Grand Concourse 
Sundays
(718) 733-3200, ext. 11

Citizens Advice Bureau 
2925 Grand Concourse 
Tuesdays, 10 a.m. to 2 p.m. 
(718) 295-7160

Jacobi Medical Center 
1400 Pelham Parkway South 
Tuesdays, 9 a.m. to 2:30 p.m. 
(718) 918-4881

(For a version of this article in Spanish, see Norwood News, p. 12).