Those IRS-certified volunteers include us. When we moved to Beaver Dam for the winter,
we volunteered for Tax Aide, primarily because there was no Volunteer Income
Tax Assistance (VITA) program in Mesquite.
Makes sense – there are a lot of seniors in Mesquite and the surrounding
areas.
The Tax Aide program requires the same certification as
VITA, plus a senior-specific training that we learned a lot from. VITA’s focus is on getting low-income
taxpayers their Earned Income Credit, where Tax Aide focuses on the needs of
seniors. We learned how to calculate the
taxable portion of annuitized pensions and how to give a retired Public Service
Officer a well-deserved tax break. We
also learned how to advise our clients who really don’t need to file a tax
return at all.
In many ways, Tax Aide is simpler. We saw no disputes over which parent gets to
claim which child, and very few penalties under the Affordable Care Act. Most of our clients have Medicare. But in other ways it’s more complicated. The more well-to-do clients are receiving
Required Minimum Distributions from their IRAs, and taking capital gains and
losses from their stock portfolios.
In two days working at the Mesquite Senior Center, I saw
more W2G’s than I’d seen in six years in VITA.
What’s a W2G? It’s a report of
gambling winnings. Casinos are required
to report winnings of $1200 or more to the IRS.
Most players who report significant winnings also report significant
losses. Here’s the rule: Winnings are considered income and are
directly taxed. Losses can be deducted
if you can itemize deductions, but only up to the amount won. Not a very favorable situation for the
gamblers of the world, and they usually tell us about it.
When we worked VITA it made me happy to see a single mother
supporting her children get an earned income credit of $2000 - $3000. Now, working Tax Aide, it makes me happy to
see the 70 to 90 set bringing in a good income in retirement, enjoying their
lives, and not having to worry about their taxes. So far my oldest client is 93. Hoping to see him again next year!