Accountant Omelia Thornton wants working-class residents in Greater Cleveland, and even some middle-class residents, to stop paying for income tax preparation services because many of them can get their taxes done for free.
The Cuyahoga EITC Coalition runs about 20 sites in the county at which people can have their income taxes returns done at no charge. The program is only open to filers making no more than $66,819 a year. The preparers are IRS-certified volunteers, who have completed special training by the federal agency.
Volunteer Thornton oversees a site in University Circle and one in Gordon Square for the nonprofit The Centers, one of the coalition’s community organization partners.
Free doesn’t mean it’s run any type of way. Free means professional, respected, and you get to keep all of your money – not just some of your money.”
Omelia Thornton, an accountant, who volunteers for the Cuyahoga EITC Coalition, by running two of its free tax prep sites.
Thornton has volunteered with the EITC Coalition for 10 years and intends to keep coming back because the program “helps so many people” avoid paying high tax prep fees.
“I do not like to see people taken advantage of, and that’s the reason why I keep volunteering with the program,” Thornton said.
The coalition has been doing the free tax prep program for 20 years, according to Kathy Matthews, a senior program director at the nonprofit Enterprise Community Partners, which has led the coalition since 2006. She said the free tax prep service has helped more than 200,000 people get refunds totaling more than $271 million.
The coalition offers free tax prep because it wants filers to take advantage of the Earned Income Tax Credit (EITC), a tax break for low- and moderate-income workers and their families. The tax credit is refundable. This means you can get a refund even if you don’t owe any taxes. The EITC amounts range from $632 to $7,830, depending on the filer’s status, including the number of dependents and whether they are filing as a single person or a married couple.
Even if you are not eligible for the EITC, the coalition will still do your taxes for free. Make an appointment at refundohio.org or by calling 211, a helpline operated by United Way. Filers just can’t earn more than the $66,819, the maximum income allowed under the tax break.
Be patient: Don’t fall for refund loans
“Free doesn’t mean it’s run any type of way,” Thornton said. “Free means professional, respected, and you get to keep all of your money – not just some of your money.”
Thornton was referring to the high fees filers often pay for tax prep services. These include a short-term consumer loan based on the tax refund a filer is expected to receive. (These are known as refund anticipated loans.) Used car dealerships, payday loan lenders and other businesses make these loans after preparing a filers tax return. The draw for many filers is that they can get their “refund” in 24 hours.
Getting a refund using the IRS’s E-file system usually takes a few weeks. Thornton said the wait is worth it. Refund anticipated loans often come with a host of fees, including tax prep fees and service and other charges, which frequently add up to $500 to $600 being taken out of a filer’s refund check.
“If they could just be a little patient, they’ll be rewarded,” Thornton said of filers.
Lower your taxes by claiming qualified energy efficient improvements
Did you make energy-efficient improvements to your home, such as installing exterior windows or doors or insulation? You may be able to claim a tax credit of $200 to $500, Thornton said.
“Many homeowners don’t know about this, and so they miss out on the credit, “ she said. “Who can’t do something with an extra $300, $400 or $500?”
Uber and Lyft drivers: Are you claiming all of your tax deductions?
Many people drive for rideshare services such as Uber and Lyft as either a side hustle or a main source of income. Too many are not taking all of the tax deductions available to them, Thornton said. These include mileage, use of a cellphone for business, car insurance, car payments and vehicle repairs. A home office associated with driving for a rideshare service may also be deductible, she said.
“Those are just a few expenses,” she said. “There are so many more in which they are really not taken advantage of.”
Don’t overlook claiming day care expenses
Thornton said many filers aren’t aware they can claim day care expenses. In order to do this, they will need the proper documentation from the day care center. That could be a letter with the day care’s EIN number and the total amount paid.
Thornton said in order to claim any type of tax deduction or credit it is important for filers to bring the required documentation to their free tax prep service appointment. When filers sign up for an appointment, they will receive information regarding which documents they should bring. She encourages filers to fill out the intake form online before their appointment. She said filling out the form, which was instituted this year, makes for faster, hassle-free appointments.
“Honestly, it’s been a game changer,” she said.
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Free income tax prep help in Greater Cleveland
Income tax filers earning as much as $67,000 annually can get their taxes done for free at four “Super Refund” events in Cleveland in January and February.