Taxes
Resources and information for Delawareans filing taxes
Tax season can be confusing and stressful for all of us. On top of the hassle, many people don’t realize that they’re eligible for certain tax breaks or free tax preparation assistance, and unfortunately, we continue to see scammers try to prey on taxpayers – particularly seniors – during tax season.
As we approach the April 18 deadline for filing taxes, I wanted to make sure you have all the information you need to file your taxes, get the tax breaks you qualify for, and avoid scams.
RESOURCES FOR FILING TAXES
Earned Income Tax Credit
You may be eligible to receive the Earned Income Tax Credit, a critical tax benefit for low-income individuals and families. According to the IRS, if your income is below the levels indicated on the following chart, you may be eligible for the EITC:
| Filing Status | Qualifying Children Claimed | |||
|---|---|---|---|---|
| Zero | One | Two | Three or more | |
| Single, Head of Household or Surviving Spouse | $14,880 | $39,296 | $44,648 | $47,955 |
| Married Filing Jointly | $20,430 | $44,846 | $50,198 | $53,505 |
Visit this IRS webpage on EITC for more information.
Before you file your taxes, make sure you have the correct forms of identification and tax information:
- Picture ID & Social Security Cards
- Copy of last year’s tax return (if available)
- W-2s & 1099s from your employer
- List of other income/expenses (itemized deductions)
- Childcare information (provider's ID number & receipts for amounts paid)
- Blank check or account ID card for direct deposit
- ALL 1099s (interest, dividends, state tax refunds, unemployment, government, & miscellaneous income)
- Form 1098 (for education credit, mortgage interest, or property tax)
- Form 1095-A certifying health insurance coverage (if applicable)
Free Tax Assistance: If you are an individual with an income of $35,000 or less or if you are a family with a total income of $54,000 or less, you may be eligible for free tax preparation. Similarly, if you are 60 or over you may be qualified for free tax assistance.
Find out more through the Delaware Tax and Financial Services Campaign.
As a member of the Senate Appropriations committee, I fought to increase funding for the VITA and TCE programs to help Delawareans file taxes:
Volunteer Income Tax Assistance (VITA) program: VITA offers matching grants to non-profits around the country that provide free tax assistance to low-income taxpayers. Today VITA is a nationwide network of over 6,200 sites. In Delaware, there are three organizations that participate in VITA: the Nehemiah Gateway Community Development Corporation, the First State Community Action Agency, and the Delaware Alliance for Community Advancement (DACA). Together these three organizations run close to 20 taxpayer assistance sites across Delaware. You can click here to help locate your nearest VITA tax center.
Tax Counseling for the Elderly (TCE) program: TCE offers free tax assistance to individuals who are 60 or older. Similar to VITA, through TCE the IRS provides grants to eligible organizations, which then provide tax assistance to eligible taxpayers. According to the IRS, the vast majority of TCE grants each year go to the AARP, which runs a very effective national network of TCE sites around the country. A few small grants are distributed to local non-profits around the country as well. There are approximately 35 TCE sites in Delaware. Click here for help locating your nearest TCE tax center.
SCAMS TO WATCH OUT FOR
Unfortunately, scammers continue to be a major threat by finding new ways to take advantage of taxpayers. The most important thing to know is that the IRS will never call demanding any personal information.
Each year the IRS produces the “Dirty Dozen” list of common tax scams for the year. Here is a link to most of the prominent scams to be on the lookout for this year.
Of particular concern is the recent rise of phone scams. Scammers are able to alter caller ID numbers to make it look like the IRS is calling. They use fake names and IRS badge numbers. They often leave "urgent" callback requests. They tend to target the elderly, newly arrived immigrants, and those whose first language is not English. The scammers demand that the taxpayer send cash via prepaid debit cards, money orders, or wire transfers from their banks. They also threaten those who refuse to pay with criminal charges, grand jury indictments, immediate arrest, deportation, or loss of a business or driver’s license.
Here are some things scammers often do but the IRS will not do. Any one of the following actions is a tell-tale sign of a scam. The IRS will never:
- Call to demand immediate payment over the phone, nor will the agency call about taxes owed without first having mailed you several bills.
- Call or email you to verify your identity by asking for personal and financial information.
- Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe.
- Require you to use a specific payment method for your taxes, such as a prepaid debit card.
- Ask for credit or debit card numbers over the phone or email.
- Threaten to immediately bring in local police or other law-enforcement groups to have you arrested for not paying.
You should also be on the outlook for tax-related identity theft, which is when someone uses your stolen Social Security number to file a tax return claiming a fraudulent refund. You may be unaware that this has happened until you e-file your return and discover that a return already has been filed using your SSN. Or, the IRS may send you a letter saying, "we have identified a suspicious return using your SSN."
Warning signs
Be alert to possible tax-related identity theft if you are contacted by the IRS or your tax professional/provider about:
- More than one tax return was filed using your SSN.
- You owe additional tax, refund offset or have had collection actions taken against you for a year you did not file a tax return.
- IRS records indicate you received wages or other income from an employer for whom you did not work.
For more information on types of scams and what to do if you think you are being scammed, click here or call 800-829-1040.
If you have any questions about the information above or need more information, please contact my office at (302) 573-6345.
