Adam Pennacchio has never filled out his own income tax returns, but he's filed for three other people so far this year.
Pennacchio is one of 10 Union College students helping low-income city residents file their tax returns free of charge as part of the state Volunteer Income Tax Assistant Program.
The Union students prepare tax returns three nights each week in the Kenney Community Center adjacent to the campus on Nott Street. Union is one of eight VITA sites within the county, three of which can aid seniors who declare pension information on their tax returns. The free tax return service is available for those with an annual household income of $36,000 or less.
The students have all completed a course in public finance with an overview of the income tax, said Therese McCarty, a professor of economics. In the fall, they took a certification course through the IRS that included four hours of training, study of an instruction manual, and a certification test.
Taxpayers using the service spare themselves the anxiety of filling out the forms themselves, or the costly fees to hire a professional.
“Considering a lot of these people are unemployed and their return is $1,000, $200 is a big chunk,” Pennacchio said.
Ishmael Patterson, a recent client, said he heard about the VITA service from his girlfriend. Last year, Patterson paid H &R Block to prepare his returns. He estimated that it cost between $150 and $375.
Pennacchio said he was daunted the first time he saw the IRS manual, but already the work has become routine.
“For the most part, it's straight up,” Pennacchio said. “I just punch numbers, I don't even look at people's income.”
JUST THE BASICS
McCarty said the Union site is limited to individuals with wage income and interest and dividends. Students cannot complete tax returns for individuals with pension income, business income, or other complications like rental property income.
“They're fairly simple, the sorts of things that can make these returns complicated are situations where there's a complicated family structure – questions about who has custody of the children,” McCarty said.
Parents face three different criteria to count a child as an exemption, count a child as a tax credit, or qualify for the Earned Income Tax Credit.
The Union VITA site has capacity to serve as many as eight people each night, but on a recent night only four were served. Students said they are generally quite busy, but added that many people call to ask questions, or even make an appointment, but do not show up for their appointment.
Greg Shaffran, a student who hoped to use his skills in Spanish, said he translated a VITA flier into Spanish and took it to a Hispanic outreach center. He thought he would be serving more Spanish speakers but is so far disappointed.
Shaffran said he thinks many low-income people may be confused about income tax returns. Shaffran said a Puerto Rican man called, made an appointment but didn't show up until the next night. Shaffran helped him fill out his return, and the man was delighted to learn he would get a refund.
“He just seemed very confused about the whole process,” Shaffran recalled. “I kind of think there's a lot of that.”
Mary Ellen Sousie, an IRS tax specialist who aids the students, said many low-income people are confused about the tax system.
Sousie said many people pay withholding taxes, but because they fall under the minimum income required to file a return, they don't file.
“If they paid withholding, they could get that back,” Sousie said.
For more information, or to make an appointment, taxpayers can call the Union College VITA at 388-6652.