Some volunteers are gray-haired and long retired, others are college accounting students seeking real-world experience behind a stack of W-2s.
New Jersey’s nearly 1,900 volunteer income tax preparers are gearing up through IRS-sponsored programs to help low- and moderate-income individuals and the elderly.
The need is great in this region, which has a high proportion of elderly and low-income residents who can’t afford to pay a tax preparer or who may risk missing refunds doing taxes themselves, said Linda Ranagan, site coordinator for the Volunteer Income Tax Assistance program through the United Way of Cumberland County.
In 2011, 16 volunteers in Cumberland County prepared taxes for 694 residents who had an average gross adjusted income of just $16,252, she said.
Nearly two-thirds of Vineland, Bridgeton and Millville residents could meet the program’s $50,000 per year earnings limit this year, she said.
Last year in New Jersey, volunteers helped more than 55,000 taxpayers through the Volunteer Income Tax Assistance and the Tax Counseling for the Elderly programs.
Finding volunteers can be difficult, although it is promoted by the IRS through area nonprofits and senior assistance programs. The IRS requires hours of training, review of tax manuals, passage of an IRS test, and generally at least several hours a week to prepare taxes at community locations.
Retired accountants and retired professionals are among volunteers, although some have had no prior training apart from preparing their own taxes. College students make up a good portion of the volunteers.
In Atlantic County, volunteer tax preparers increased from nine last year to nearly 20 this year, boosted by a number of business students from the Richard Stockton College of New Jersey, said Amanda Morrison, director of community initiatives for the United Way of Atlantic County, which coordinates the Volunteer Income Tax Assistance Program locally
“The economy, I think, has a lot to do with it. These people are graduating with an accounting degree and the more experience they have the better they are for employers,” she said. “And definitely the tax students are a real asset because they have an understanding of basic tax forms.”
The United Way of Atlantic County said it got involved in the program several years ago after hearing that much of the Earned Income Tax Credit, which can offer refunds of several thousand dollars to those who qualify, was unclaimed in the region. The United Way estimated this at more than $15 million.
Nationally, the IRS estimates one out of five eligible workers and families miss out on the Earned Income Tax Credit because they don't claim it or don't file a return at all.
In Cape May County, more than 900 returns were prepared last year, said Lee Shupert, the program director of the Retired and Senior Volunteer Program who works in the county’s Department of Aging.
“In taxation, it’s more important to know how to find the answer than to memorize a bunch of facts,” said Frank Thomas, a professor of accounting and finance at Stockton.
The Volunteer Income Tax Assistance program has been in place for more than 40 years, originating with the Tax Reform Act of 1969 to increase emphasis on taxpayer education, said Dianne Besunder, IRS spokeswoman.
Nationally last year, 88,000 volunteers prepared more than 3 million tax returns for free, the IRS states.
“It feels good when you help them to get money back,” said Jack Bonner, 80, of North Wildwood, a retired property insurance adjuster who last year helped senior citizens in Cape May County. “There’s a big smile on their face.”
The tax returns are often relatively simple because the maximum earning allowable for those getting help is $50,000 a year. Volunteers use tax preparation software similar to commercial versions.
Still, there can be pitfalls.
An error regarding the Earned Income Tax Credit — a refund available to some low-wage workers — could be a particularly costly mistake. Volunteers are reminded of this frequently during training. The IRS requires quality reviewers to review the return before the taxpayer leaves the site, Besunder said.
In a classroom in Cape May Court House, about 20 volunteers recently took a weeklong training session, learning or brushing up on federal and state income tax laws.
A retired certified public accountant, Edward McCaughey, 78, of Upper Township, is now a trainer for the program.
“It’s generally pretty simple returns we do. However, the tax code is pretty complex. I’ve been doing taxes for 50-plus years now, and every year I see something new,” he said. “Most of the people we get (as a volunteer), if they’ve done a tax return, we can use them.”
Contact Brian Ianieri:
609-272-7253
