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The Housing Authority of the City of Santa Barbara
Provides Important Tax Tips to Community

April 1, 2008, Santa Barbara, CA — The deadline to file taxes is quickly approaching us, and the Housing Authority of the City of Santa Barbara is continuing to help lower income individuals and families prepare for tax season.

In partnership with the Internal Revenue Service’s VITA (Volunteer Income Tax Assistance) program the City’s Housing Authority has opened free income tax preparation centers for low-income families, seniors, the disabled and handicapped with earnings up to $39,783. In addition, they would like to offer our community members with helpful tips to make income taxes for 2007 as clear and easy as possible.

When preparing taxes this year, remember these important tips:

1) Make sure you report all sources of income: employment wages, self-employment earnings, and unemployment and interest income.

2) Although you may not be required to file a tax return, it is possible that you may qualify to receive an Economic Stimulus payment from the Federal Government. What you could receive is a payment of $300 if filing single or $600 if is filing married-filing-joint. You may also qualify for an additional amount of $300 for each child less than 17 years of age.

To qualify for the Economic Stimulus payment, you need to file taxes by completing forms 1040 or 1040A for the 2007 tax-year and at least report the amount of $3000 of income, including the amount of benefits from social security, Veteran’s Disability pension or retirement income. The IRS will begin to send Economic Stimulus checks in May of the 2008. FOR more information visit the IRS website at WWW.IRS.GOV or call 1-800-829-1040.

3) Clothes or household items donated after Aug. 17, 2007, have to be in ``good used condition'' or better to be claimed as a deduction. One exception is for items in less-than-good condition but that have been appraised at $500 or more.

4) Taxpayers who made energy-saving improvements to their home can claim credits from $50 to $4,000, as long as the work is on their primary residence and the home is in the United States. Individuals can get a tax credit for buying a new hybrid car or light truck, which means it runs on electricity and gasoline, in 2007.

5) If you decide to have a professional tax preparer do your taxes, or if you choose to use a VITA tax center, be sure to bring all pertinent information with you: last year’s tax-return, W-2s, 1099s, 1098s, and your childcare provider information.

6) Child Tax Credit is for people who have a qualifying child. It can be claimed in addition to the credit for Child and Dependent Care expenses

7) The Earned Income Tax Credit (EITC) is a tax credit for certain people who work and have an earned income under certain thresholds. A tax credit usually means more money in the pocket of the tax payer.

• If you earned less than $12,590 ($14,590 if married filing jointly) and did not have an any qualifying children

• If you earned less than $33,241 ($35,241 if married filing jointly) and have one qualifying child

• If you earned less than $37,783 ($39,783 if married filing jointly) and have more than one qualifying child

8) Taxpayers who pay someone to do their taxes should choose a preparer wisely. If you choose to use a paid tax preparer, it is important that you find a qualified tax professional. Taxpayers are ultimately responsible for everything on their return even when it’s prepared by a ‘paid-preparer.’

9) The IRS websites: IRS.gov and IRS.gov/Español offer tax information for individuals and small businesses. For individuals, the webpage contains forms, publications and brochures that provide detailed tax information. Interactive applications are also available to assist you in determining eligibility for the Earned Income Tax Credit, calculating withholding, and learning the status of your refund. You can also call the IRS customer service number at 1-800-829-1040

10) Procrastinators, take note: If you're among the millions of people who file for an automatic six-month extension, you will get your Treasury payment after you send in your return.

VITA centers can help prepare:

• Forms-1040 EZ, 1040 A with schedules 1, 2, 3 & EIC
• 1040 with schedule A, B, EIC & R
• 1040-V
• 1040-ES
• Form 2441 (Child and Dependants Care Credit)
• Form 8863 (Education Credits)
• Form 8812 (Additional Child Tax Credit)

Housing Authority’s Tax Preparation Center locations/hours:

• HACSB Family Opportunity Center, 526 West Montecito Street
• HACSB Paseo Voluntario Learning Center, 309 South Voluntario Street
• Both centers are open Mondays through Thursdays, 5:00 PM - 8:00 PM and Saturdays from 9:00 AM - 3:00 PM (between February 1, 2008 and April 15, 2008, except for holidays).
• Appointments are encouraged, schedule by calling 730-1188 (Montecito St) or 966-6581 (Voluntario St.) during the hours above. Walk-in appointments are also welcome.
• A list of all VITA tax centers in Santa Barbara County is available at www.hacsb.org/tax

The Housing Authority of the City of Santa Barbara is a local public agency created for the purpose of providing safe, decent, and quality affordable housing and supportive services to eligible persons with limited incomes, through a variety of federal, state, local and private resources. Please visit the website at www.hacsb.org

The mission of the Internal Revenue Service is to provide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all.

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