UNIVERSITY PARK, Pa. – Low-income families and senior citizens dreading the paperwork and pressure of filing federal and state income tax returns can get help from a special program sponsored by Penn State’s College of Agricultural Sciences.

Penn State Cooperative Extension and the Dickinson School of Law at Penn State’s University Park campus are cooperating on a Volunteer Income Tax Assistance, or VITA, program to offer tax preparation help for low- and moderate-income families (i.e., with earnings of $40,000 or less). The program is offered Monday through Thursday, 6-9 p.m., and Saturdays from 9 a.m. to 4 p.m. at Penn State’s Department of Agricultural and Extension Education in 10 Ferguson Building on the University Park campus. The program will maintain those hours until April 9, when the site closes.

“Nearly all of the 25 volunteer preparers are Dickinson Law School students, and VITA gives them an opportunity to put their tax law classes to use and to apply skills they will use as professional attorneys, such as asking appropriate questions and maintaining client confidentially,” says Penn State associate professor Cathy Bowen, who is directing the program. “Moreover, the VITA program provides a chance for student volunteers to contribute to the local community by helping low-wage earners comply with tax laws and in most cases put money in their pockets.’’

“While some of the money being refunded may actually be a return of taxes withheld from earners’ paychecks, there is a huge potential for the targeted taxpayers to receive refundable credits, such as the Earned Income Credit and the Child Tax Credit. These are dollars set aside in the federal budget to assist low-wage earners.”

Bowen explains that both credit programs require earners to file a tax return to claim benefits, even if their gross income is below the amount that normally would require them to file a return (e.g. $8,750 for singles under age 65, or $10,050 for singles over 65 for the 2007 tax year).

“In 2004, an estimated $1.5 million in EIC funds were left unclaimed by Centre County residents,” she says. “This VITA program is bringing dollars back to counties and putting money in the hands of folks who can use the money for their families.

“For decades, Penn State Cooperative Extension has referred low income families to VITA sites for assistance with income tax preparation, Bowen adds. “Because VITA provides a one-on-one, teachable moment to educate taxpayers on money management tips and information that could improve their financial well-being, extension recently has partnered with other groups to offer VITA sites, particularly in underserved areas. The combination of knowledgeable preparers and electronic filing can make the process easier for families who qualify for VITA. E-filing is a plus because anyone due a refund will usually get it about three weeks or less after the return is accepted by the IRS.”

VITA volunteers will help prepare and file tax returns for families with earnings of $40,000 or less for free. In addition to federal and state income tax preparation, volunteers will be ready to offer money management tips and to help qualified filers to apply for the Pennsylvania Rent and Property Tax Rebate.

VITA services are available only by appointment, which can be scheduled by calling (814) 863-7850, Monday through Friday, 8 a.m. to 5:00 p.m. The program is closed during Penn State’s spring break, March 8-15.

Taxpayers should bring photo identification, Social Security cards (for taxpayers and dependents), W-2 or 1099 forms or other evidence of income, a copy of last year’s tax return, and bank account and routing number (for direct deposit of refunds). Penn State Extension also offers VITA assistance in Elk, Cameron, Potter, McKean, Mifflin and Juniata counties.

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EDITORS: Contact Cathy Bowen at 814-863-7670, or by e-mail at cbowen@psu.edu.

Writer-Editor: Gary Abdullah 814-863-2708 gxa2@psu.edu