Tax Season Tips & the SLLS Low-Income Taxpayer Clinic

Posted on: April 23, 2019

This month, we’re kicking off a new “Did You Know?” series to share information about work and services available for vulnerable people in the communities we serve.

Did You Know?

Income Tax 101

Tax season is a stressful time of year. That’s why we asked Paul Tuttle, managing attorney of our statewide Low-Income Taxpayer Clinic (LITC) to share some legal information with our readers.

Did you know that low-income taxpayers can get free, professional help in preparing tax returns?

Call Volunteer Income Tax Assistance (VITA) toll free at 1-800-906-9887 to find the nearest VITA site.
Check out the United Way of Southeast Louisiana website for more information about its VITA program.
If you are over 60 years of age, then you can also get tax preparation help from the AARP. Call toll free at 1-888-227-7669.

Did you know that income tax is due as soon as you earn income?

Employers will often withhold tax from W-2 wage-employees. But if you are self-employed, or a contractor, then you should be paying “estimated tax” to the IRS every three months. If you don’t, then you may end up with a very large tax liability when you file your tax returns. To find out more, visit the IRS website and type in “Estimated Taxes” into the search box.

Did you know that many low-income families qualify for the Earned Income Tax Credit (EITC)?

Visit the IRS website or use the Earned Income Tax Credit (EITC) Assistant to see if you qualify for a refund.

SLLS Stands Up for The Rights of Low-Income People in IRS Disputes

SLLS’ Low-Income Tax Clinic (LITC) fights for fairness and integrity for low-income taxpayers in the tax system.

We provide free legal representation for low-income people, like the Johnsons* (see below) in federal and related state tax disputes. We also educate taxpayers about their rights and responsibilities, and advocate for issues that impact low-income taxpayers.

The Johnsons were one of hundreds of families touched by our LITC last year. After Doug and Susan Johnson learned that two of their nieces were being abused and neglected, they decided to take custody of the girls to give them a safe and loving home. When they filed their taxes, the IRS refused to recognize the girls as their dependents. The IRS’ decision significantly increased the amount of taxes the Johnsons would owe since they would no longer qualify for the Earned Income Tax Credit (EITC). With few resources and limited income, the Johnsons could not afford the extra cost. They tried to fight the IRS on their own in Tax Court. But the court rules were complicated and confusing. After the Johnsons filed incorrect documents, they were in danger of the court dismissing their claim. Then they came to our LITC for help. We filed new documents and submitted evidence that the Johnsons had legal custody of their nieces. After SLLS’ intervention, the IRS overturned its decision and granted the Johnsons nearly $9000 in much-needed EITC.

Check out the LITC brochure to learn more about LITC’s services.

*Names and other details of this story were changed to protect the identity of our clients.

SAVE THE DATE

GiveNOLA Day—May 7, 2019

Mark your calendar and show your support for civil justice by donating to SLLS on May 7, 2019 at https://www.givenola.org/SLLS. Your support increases fairness for all in our courtrooms and in our communities.

How does your investment in SLLS increase access to justice? Check out the blog page of our website to read about some of our clients and how SLLS changed their lives.

Ready to take the fight for fairness to the next level?

Read Full Article