Just File It Free Tax Preparation Services

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Just File It! Free Tax Preparation Services
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I-CAN! E-FILEIts free!www.icanefile.org

• I-CAN! E-File was created by the Legal Aid
  Society of Orange
• County (California) to help individuals complete
  their federal tax
• forms and claim EITC without being charged
  excessive fees.
• (No special software is needed. Just need Adobe
  Reader.)
• How does it work?
• A credit union member goes to the homepage for
  their credit union and clicks on the Just file
  it! Well help. icon, this takes them directly
  to the I-CAN! E-File site.
• Taxpayers can access I-CAN! E-File via the
  Internet from their home, a library, a partner
  site or any other location with an Internet
  connection.
• Taxpayers go through a series of secure web pages
  and input answers to simple, interactive
  questions.
• Once all of the questions have been answered, the
  information is compiled and placed on federal
  and/or state tax forms that can be e-filed or
  printed and mailed in.

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Using I-CAN! E-FILE

• Launch Date January 20, 2009
• Go to www.icanefile.org and use the Online
  Training demo

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Some I-CAN! E-File limitations

• Cant use I-CAN! E-File if
• Own business
• Are a church employee or clergy member
• Sold Real Estate in the tax year
• You or your employer have a non US address
• Individuals with disabilities or in the military
  may be eligible for tax credits not included in
  I-CAN! E-File.
• A small number of people should not use I-CAN!
  E-File
• Persons who are Blind because there are
  complicated credits this person may be eligible
  for and I-CAN! E-File cannot complete these
  forms
• Employees whose employer contributes to child
  care costs and
• Self- Employed individuals if they want to
  amortize equipment or itemize deductions

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What tax information is needed to file?

• Your Social Security number
• Your spouses and childrens names as they appear
  on the Social Security card and their Social
  Security numbers
• All forms that show the income you received in
  the past year. These may include
• All W-2s from employment for you, your spouse and
  your children
• Bank statements which show interest earned on
  deposits
• 1098Ts which list educational expenses
• Your unemployment statements
• Child care information such as
• Name, phone number and address of child care
  facility or individual
• Amount paid during the year for child care
• Federal taxpayer identification number or Social
  Security number of facility or individual
• Whether or not your employer pays part of the
  child care

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Steps in the filing process

• First, you will create an account with your Name
  and Social Security Number. Next, you will answer
  questions for your federal and then state,
  return. Then you will print and review your
  return to make sure it is complete and correct.
  Once you are satisfied you can mail or e-file
  your return. If you e-file your e-file status
  will then be "Pending".
• The next step if you e-file is to come back to
  www.icanefile.org in 2-3 days and click on "Check
  My E-file Status" on the right. If your status is
  "Rejected", the I-CAN! E-file status page will
  tell you what to do to correct your return. You
  may be able to e-file again or you may need to
  mail your return. Once your status is "Accepted",
  your tax return will be filed with the IRS and
  your state. At this point, if you are due a
  refund, you can click the links on the right
  sidebar under "Where's my refund?" to track your
  federal and/or state refund.
• YOUR TAX RETURN IS NOT FILED UNTIL YOUR E-FILE
  STATUS IS "ACCEPTED".
• If your status is "pending" or "rejected" that
  means that you have not yet filed your return
  according to the IRS. If you choose not to
  e-file you can print your forms and mail them.

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Forms that I-CAN! E-File can complete
Federal Forms Form 1040 Schedule C Profit or
Loss from Business (Profit only, 1099-MISC box 7
only) Schedule R Credit for the Elderly or the
Disabled Schedule SE Self-employment tax Form
2441 Child and Dependent Care Form 8814 Parents'
Election to Report Child's Interest and Dividends
(For a child under 14 who gets Alaska Permanent
Fund Dividends only) Schedule EIC Earned Income
Credit Qualifying Child Information Form 8812
Additional Child Tax Credit Form 8863 Education
Credits Form 8901 Information on Qualifying
Children Who Are Not Dependents (For Child Tax
Credit) Form 8880 Credit for Qualified
Retirement Savings Contributions Form 6251
Alternative Minimum Tax Schedule AB Itemized
deductions, interest and ordinary dividends Form
8888 Direct deposit into multiple accounts Form
1040v Payment voucher   Federal
Worksheets Pensions and Annuities Simplified
Method Worksheet Social Security Benefits
Worksheet IRA Deduction Worksheet Student Loan
Interest Worksheet Standard Deduction Worksheet
for Dependents Child Tax Credit Worksheet EIC
Worksheet A or B MI Forms and
Worksheets MI-1040 Michigan Individual Income Tax
Return MI-1040 Schedule 1 2 Schedule CT
Michigan College Tuition and Fees Credit Use Tax
Worksheet MI-1040CR Michigan Homestead Property
Tax Credit Claim MI-1040CR-7 Michigan Home
Heating Credit Claim Schedule W Worksheet 2
Filer eligible to be claimed as a dependent
MI-1040v Payment voucher
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Some things to be aware of...

• Please make sure you have ALL of your tax
  documents before you e-file. You may start
  entering your information into I-CAN! E-file
  before you have all of your documents and "Save
  and Exit" before you get to the e-file
  confirmation screen.
• Once you e-file you cannot change your
  information. Once your return is accepted, you
  cannot e-file again. If you receive a new tax
  document after you e-file, you will need to amend
  your return and you cannot do this using I-CAN!
  E-File.

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E-Filing

• Electronic filing is available to taxpayers
  using I-CAN! E-FILE if those individuals have
  their own email account.
• E-filing allows returns to be processed quickly.
  Projections are that these returns and credit
  will be deposited within 10 days.
• E-filed returns are directly deposited into
  credit union accounts so E-filers must have the
  credit union routing number and their personal
  share or draft account number.

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Credits you can claim on I-CAN! E-Filed

• I-CAN! E-FILE will help you complete all
  necessary tax forms for your Michigan and Federal
  tax returns and allow you to claim all other
  credits and deductions your are eligible for
  including
• Child Tax Credit
• Education Credit
• Savers Credit
• Student Loan Deductions
• Child and Dependent Care Expenses Credit
• Michigan Homestead Property Tax Credit
• Michigan Home Heating Credit and
• Public Radio and Television
• And the Federal and State Earned Income Tax
  Credit (EITC)

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The Federal Earned Income Tax Credit

• The Federal Earned Income Tax Credit (EITC)
  program was created in 1975 to provide a
  tax-based wage supplement to low and moderate
  income working families. This special tax credit
  helps ease the tax burden for working families
  and individuals and offsets some of their living
  expenses.
• For the 2007 tax year Michigan taxpayers claimed
  over 2 million in EITC refunds

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EITC Underutilized

• Many people who are eligible for the EITC do not
  know about it or how to claim it.
• Even workers whose income is too small to pay
  taxes can receive a refund though the EITC
• As many as 20-25 of eligible workers dont claim
  the EITC

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Michigan EITC

• Currently 22 states have EITC programs (up from 7
  in 1994)
• In September, 2006, Michigan Gov. Jennifer
  Granholm signed legislation creating a refundable
  Michigan EITC.
• Effective for tax years beginning after 2007.
• Michigan EITC piggyback credit equal to 10 of
  the Federal credit in 2008 and 20 of the Federal
  credit after 2008.

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EITC Refunds

• In the 2007 tax year I-CAN! E-File returned over
  33 million dollars to low and moderate wage
  earners. 11 million of which were Earned Income
  Tax Credit dollars.
• The federal EITC will provide approximately 44.7
  billion in benefits to recipients in 2008 (2009
  Budget of the U.S.).

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Eligibility for EITC

• Federal
• Have Earned Income in 2008
• Have a valid Social Security Number
• Be a U.S. citizen or Legal Permanent Resident
• Not Qualify as a Dependent for another taxpayer
• Investment Income must be less than 2,950 (if
  applicable)
• If the number of qualifying children is 0, must
  be 25 years or older.
• Michigan
• Must be a Michigan taxpayer
• Subject to the Michigan income tax
• Not necessarily a resident
• Must be eligible for the federal EITC
• Must have a Social Security Number
• Cannot be married filing a separate return
• Meet income/child criteria
• Cannot be blocked from claiming the federal
  credit due to negligence or suspected fraud
  (I.R.C. Sec. 32(k)).

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888-4-EITC-4U

• On December 1, 2008 the Legal Aid Society of
  Orange County will launch a nationwide toll-free
  number for taxpayers to call and receive EITC
  eligibility guidelines and be connected to free
  tax preparation resources and service providers.
  888-4-EITC-4U

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Amount Taxpayers Get Back!

• For 2008 low income wage earners can receive
• Families with one child who earn less than
  33,995 in 2008 (or less than 36, 995 for
  married workers) are eligible for a credit of up
  to 2,917
• Families with two or more children who earn less
  than 38,646 in 2008 (or less than 41,646 for
  married workers) are eligible for a credit of up
  to 4,824
• Workers without a qualifying child who earn less
  than 12,880 in 2008 (or less than 15,880 for
  married workers) are eligible for a credit of up
  to 438.
• Earned Income includes wages, salaries and tips
  net earnings from self-employment union strike
  benefits employer paid disability benefits
  and military combat pay.
• Earned Income does not include non-taxable
  earned income (payroll deductions for dependent
  care or retirement plans) public benefits
  (Social Security) Other taxable income such as
  unemployment alimony interest on bank accounts.

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Just File It! Credit Union Partners

• Nearly 90 Credit Unions enrolled to participate
  as Just File It! Partners for the 2007 tax filing
  season
• Dow Chemical CU (171)
• Michigan State University FCU (95)
• Michigan Tech Employees FCU (102)
• Members Credit Union (83)
• Website Link provided a link to the I-CAN!
  E-FILE application using the Just file it! icon
• Publicity publicize Just file it! to your
  members and in your community.

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Tracking Your Outreach Efforts

• I-CAN! E-File provides real time usage
  information tracked by partner.
• You must have an I-CAN! E-File partner ID number
• This is a number you add to the web link your
  program uses when you direct members to use
  I-CAN! E-File.
• When a user completes their tax return with
  I-CAN! E-File, the totals of their tax dollars
  are added to the totals under your credit
  union/program name. You can see both the total
  number of users who completed their tax return
  from your referrals by clicking on the Taxpayer
  Reports link.
• You can access information about your users by
  typing
• https//secure.icanefile.org?caller1
  (substitute your partner ID number for the 1)

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Just file it! Website

• Whats available?
• Materials ready to download and use!
• Posters, teller tents, newsletter articles,
  statement stuffers all designed to help you
  promote the program to members and within the
  community
• A list of local VITA site partners
• This will be up-dated once we have the new sites
  for the 2008 tax filing season

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Contact Information
Gayle Rosen Michigan Poverty Law
Program gcrosen_at_comcast.net Martha
Ninichuk Director of CU Relations, Michigan
Credit Union League [phone], ext. 445,
Martha.Ninichuk_at_mcul.org