2008 Woodie Awards
Help for first-time tax filers
By Allan Nussbaum
Last update: 5/17/06 at 8:20 AM CST
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Taxes come due on April 15 and there are many students at this college who will be filing for the first time.
For newcomers, the current tax code can be confusing and intimidating, forcing first-time filers to seek outside help.
Jim Tsakopulos, a local certified public accountant specializing in taxes with the firm of Tsakopulos, Brown, Schott and Anchors, has been engaged in personal, corporate and business tax matters, audits and bookkeeping since 1967.
Tsakopulos said there is no minimum or maximum age for having to file tax returns; it depends on the amount and type of income.
"The rules are really confusing for young people," Tsakopulos said, but he noted that as a general rule, students claimed by their parents and who take a standard 2006 year deduction of $4,850 in wages, plus $300 in dividends and interest will not have to pay taxes.
For those individuals who want to attempt to file on their own, the process is not difficult if they read through the entire tax form and answer all the questions.
Should a novice filer need assistance, Tsakopulos says there are several routes to turn to for help.
The first and best is VITA, or Volunteer Income Tax Assistance, a cooperative program between the IRS and the state, that can be found at schools, libraries and malls through the tax season.
VITA provides free tax preparation assistance for taxpayers who meet certain prerequisites and make less than $40,000 per year.
Tsakopulos advised that despite the help, filers need to read and fill out the forms themselves so they will know what the tax forms are all about.
A second, inexpensive route is to use a computer program to complete tax forms.
Tsakopulos said Turbo Tax is the most popular program on the market and although it takes business away from him, it is very accurate when used properly.
"The biggest problem is that people don't read the instructions or answer all the questions. If you do, they work perfectly," Tsakopulos said.
Tsakopulos said novice filers should stay away from the "chain store" preparers as they usually charge numerous fees for different parts of the return rather than a blanket fee for the entire filing.
He also advised filers to avoid payday loans that charge high interest, stating that a refund can be obtained by e-filing in as little as five to seven days.
Tsakopulos closed by noting novice filers need to know the IRS is attempting to simplify and automate a lot of the process used in checking returns, so the filings need to be accurate and honest.
Log on to http://www.sanantonio.gov/comminit/vita/vitamain.asp?res=1024&ver=true for help.
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