Tax time

They say numbers help keep their minds sharp; and they like being able to give back to the community — especially those in need. That is why they volunteer sometimes hundreds of hours over the course of three months to help — for free — about 1,000 county families complete the yearly obligation of filing federal and state taxes.

“I enjoy doing taxes,” one volunteer said.

“I enjoy it, too,” another exclaimed. That chorus was repeated by the entire group who had recently gathered for a training program held each year before the start of the tax season.

“It’s a great mind exercise and it’s just satisfying,” volunteer Mary Bartlett said.

“It gives you a sense of satisfaction to help the people,” Annette Vollrath said.

“Especially the low-income and seniors who are unable to do it,” Les Bjorkquist added.

Tax preparers through the AARP Tax-Aide program at Kootasca Community Action Inc. will soon have their desks covered in W-2 forms and their thoughts concerned with itemized deductions. Many will eat, sleep and breathe taxes through April 15. But they seem to relish the thought of doing, hundreds of times over, what many find at best an annual annoyance.

The program is sponsored by AARP, the state of Minnesota and the Internal Revenue Service. The program partners with Kootasca and its RSVP program, which links seniors to volunteer opportunities. Kootasca gives the AARP Tax-Aide program in-kind donations of office space, office supplies, phone lines and maintenance support as well as tracks the volunteer hours of RSVP members.

Before the doors are opened Tuesday for the public, the volunteer tax assistants were engrossed in college-thick textbooks and lessons on how to work the computerized tax software and details on the changes in tax code this year.

Vollrath, Bette Simon and Betty Ericson attended instructor training in December in Grand Rapids. They brought that information to the other volunteer tax preparers in a six-day training program conducted last week.

Once the doors open in February, an organized chaos ensues in the office, they said. February is the busiest month, with area residents’ annual statements freshly received in January.

Last year, the volunteers prepared 1,062 taxes. This year, about 17 volunteers will work to answer telephones, handle intake paperwork when clients arrive and assist with tax preparation and questions.

Nationwide since 1968, Tax-Aide volunteers have helped nearly 50 million taxpayers — about 2.6 million each year, according to the AARP website.

Volunteers are required to put in at least 40 hours during the season, but many note they work more than that during any given week, up to several hundred hours between February and April.

Last year, volunteers with the AARP Tax-Aide program in Koochiching County who logged their hours with RSVP (those who are 55 and older) provided 2,694 hours of labor. With the estimated value of one hour of volunteer work in 2009 at $20.85, that equals more than $56,000 in time to the community, said Lisa Simon, RSVP program coordinator for Koochiching County. RSVP links seniors to volunteer opportunities throughout the community, and this is one of the programs in which area seniors assist.

Vollrath has been preparing taxes for about 12 years. She and two other tax preparers completed 183 returns their first year— all done on paper with mistakes erased and recalculated.

Bette Simon has been volunteering with the program at least 15 years, she said. She is the longest-running volunteer with the local program. The group guessed that the program had been providing the free tax service in Koochiching County for more than 20 years, although nobody knew the beginnings of the local branch of the nationwide program.

“There’s a wealth of knowledge here, I can tell you that,” Bartlett said.

And for some, the interaction goes beyond completing a form.

“Some of the clients leave with advice on their love life,” Bartlett joked. “Or advice on when to start saving for next year. Some get whacked with a rolled-up paper.”

And while some clients are never pleased with the results no matter how completely the tax preparer does his or her job, most clients are thrilled with the free service.

“They call, come in or on the phone, they’re so excited,” volunteer Susan Dion said. “They’re so thankful. ‘Really, you do it for free?’ They’re just so thankful we’ll help them in the door and out the door.”

And while they say they are not in competition with paid tax services due to different clientele, members note, they are able to handle most people’s tax returns for free, saving many people what could amount to hundreds of dollars.

The target market is senior citizens and low-income families; but no one is turned away based on age, income or any other factor except the type of income they receive. The AARP Tax-Aide program is not able to process farm income or handle business taxes for organizations paying employees. They can, however, do taxes for a home-based business without employees. Those questioning whether they are eligible for assistance through the program are encouraged to call the tax-prep office.

They also make house calls of sorts, too. Some of the volunteers will visit senior housing complexes like Woodland Park Apartments, Hampton Court, West Falls Estates and Littlefork’s Jackpine Chateau throughout the tax season.

Preparing for service

All of the tax-preparation volunteers have to attend a training program and pass a strict test that will ultimately certify them to work with the public.

“This is a tremendous service that these volunteers are providing. They go through intense training and testing each year to be able to be knowledgeable about all the current year tax rules and help others reclaim monies,” said Lisa Simon.

Results of the tax returns are not just checked, but double checked through a system of peer review that ensures each return is as error-free as possible. So those worried about the possibility of transposed numbers or a missed deduction should feel comfortable the staff is well-trained and the work is reviewed, they said.

In addition, every step to ensure confidentiality and security of client’s personal information is taken. Each tax preparer signs a confidentiality agreement, and the computers’ data are encrypted until the end of the season when the hard drives are wiped clear. Shredders are used for any paperwork that remains after a consultation.

Those wishing to have their taxes done or questions answered should come prepared with the relevant information. (See the box for what to bring.)

Vollrath reminds families with children to save their school-related receipts. Renters should also be aware of credits available to them and should bring information on the amount of rent paid over the year. Homeowner property taxes are often misunderstood; resulting in many questions to the Tax-Aide volunteers, they said.

Their policy: It doesn’t hurt to come in and ask. From a second opinion, a specific question or complete tax preparation, they are willing to do it all.

They warn those who want to do their own taxes that they may not be taking advantage of all the rebates and deductions to which they are entitled.

“Filing taxes can be a complicated thing. Often people miss out on deductions or claims they didn’t know they could take. You can be sure these AARP Tax-Aide volunteers know what they’re doing,” Lisa Simon said.

Each new tax season brings new lessons, new rules and new ways to do things.

“My philosophy is I don’t mind paying my taxes, but I don’t know why the government has to make it so complicated that I have to pay somebody to tell me how much I owe,” Vollrath said.

President Barack Obama addressed just that issue during his State of the Union address Tuesday.

“In fact, the best thing we could do on taxes for all Americans is to simplify the individual tax code,” Obama said. “This will be a tough job, but members of both parties have expressed an interest in doing this, and I am prepared to join them.”

Each year, policies are changed, rebates are provided, short-term incentives reach their deadlines. And although Benjamin Franklin’s famous quote, “the only thing certain is death and taxes,” is often repeated, members of this group would add that the tax code is anything but certain year-to-year.

One change that the group noted this year was due to late changes to the tax code at the end of 2010, those wishing to electronically file taxes that itemize deductions will need to wait until mid-February to file. They can have the taxes prepared before that, but cannot file for several weeks. That rule applies no matter who prepares the taxes, they note, and is not specific to their program.

How to get involved

There are still openings for volunteers in each sector of the process: phone operators, intake staff and tax preparers. Those wishing to volunteer should contact the program at 283-5236.

They are not allowed to take payment for the services. But members joke, with a hearty laugh, that doughnuts, cookies and other treats are rarely refused.

The AARP Tax-Aide office, located in Kootasca at 2232 2nd Avenue East, will accept clients by 30-minute appointments from 9 a.m. to 3:30 p.m. Mondays through Fridays. The program will run through tax day, April 15. Appointments should be made by calling 283-5236.

For more information on the AARP Tax-Aide program, visit http://www.aarp.org/money/taxes/aarp_taxaide/.