Dear Gene-Thomas,

Every year we have had our taxes done at a Volunteer Income Tax Assistance (VITA) office on base. When we went to get our taxes done this year, we were told that they could not help us because we own property and I operate a small home business selling children’s clothes…. Cora

Dear Cora,

The military has always been one of the largest participants in the Volunteer Income Tax Assistance (VITA) Program developed by the Internal Revenue Service (IRS). Commanders support the program by detailing service members to prepare returns and by providing space and equipment for tax centers. The IRS supports these efforts by providing tax software and by training service members to prepare taxes at military sites.

Because the number of volunteers and the extent of the training VITA volunteers receive vary from base to base, some commands are incapable of offering certain levels of assistance. For example, when I called one relatively small remote base, I was told they had but one volunteer who could only help in the preparation of Forms 1040EZ. Other larger commands are not so limited in the scope of the assistance they can provide. 

Before visiting a base VITA office on a walk-in basis or setting up an appointment to meet with a VITA volunteer, it’s wise to ascertain ahead of time exactly what documents you need to provide and what limitations there may be in completing your tax return. One Army command, for example, made it clear on their website that their VITA volunteers are not able to assist "taxpayers who are required to file a Schedule C, ‘Profit or Loss From a Business,’ or Schedule E." The main reason for this limitation is that the intricacies of filing a Schedule C or Schedule E, such as, determining the accounting method used in a business, the rules for determining the cost of any inventory, the use of a vehicle in the business, depreciation of assets, and business tax expenses, are beyond the expertise of most VITA Tax Center personnel.

Even though you were not able to have your taxes done on base, there are other options available today without cost to military personnel and families. Two very helpful alternatives are TaxSlayer and TurboTax.
 
When visiting the TaxSlayer website at www.taxslayer.com, you will see an "Active Duty Military" link that will direct you to a page in which you will be asked to provide your military EIN from your W2 that will verify your qualification to use their service without cost. According to Brian Rhodes, the company’s Product Manager, "TaxSlayer salutes  the men and women of the United States Armed Forces, and is honored to perform its patriotic duty by offering this service." Many military personnel have utilized and appreciated the free tax services provided by Taxslayer. SFC F. J. Ryan wrote the company saying, "I just wanted to thank you for allowing me and all other active duty service members to file our taxes for free using your excellent software. It is not often that a company will extend that kind of appreciation to the armed services."

Another important free tax resource is TurboTax that is available through Military OneSource. This is the first year for this program and more than 100,000 people have already taken advantage of the free tax software and e-filing. Once you visit the Military One Source website at www.militaryonesource.com, you will need to establish or verify your membership and receive a user name and password. Once you are logged into the Military OneSource website, you will then find a link to TurboTax where, after creating another username and password, you can complete most tax forms including those associated with owning property and operating a small home business (Sole Proprietorship). For further information about the TurboTax program call Military OneSource TurboTax at 1-800-730-3802.

Whether you file your taxes online or in person with a VITA volunteer, remember to bring photo identification; Social Security information for the taxpayer, spouse and dependents; birth dates for primary, secondary and dependents on the tax return; wage and earning statement(s) Form W-2, W-2G, 1099-R, from all employers; interest and dividend statements from banks (Forms 1099); a copy of last year’s Federal and State returns; bank routing numbers and account numbers for direct deposit; other relevant information about income and expenses such as total amount paid for day care along with the day care providers identifying number. Finally, to file taxes electronically on a married filing joint tax return, both spouses must be present to sign the required forms.

Most Americans file their income taxes in late January and early February when they receive their W-2 forms with the aim of receiving a tax refund. Filing diminishes after that point until the last week before the April 15 deadline when between 10 and 20 percent of Americans file their returns. Even if you have already filed your taxes for 2005, you may wish to note the alternatives identified above and consider using them in years to come.

Gene-Thomas Gomulka
“A voice for military families” Columnist and author of The Survival Guide for Marriage in the Military available at www.plaintec.net

Have a question or comment? Write Gene-Thomas at letters@plaintec.net