Make Your Tax Refund Work for You!

By Justin Chu, Program Associate, Taxpayer Opportunity Network

Every year, the middle of April marks the end of the federal tax return filing season. For many Americans, that can mean seemingly endless forms, paystubs, and other paperwork. However, tax time can also be a unique opportunity for saving for your future! You can maximize tax time in three easy ways and have your tax refund work for you.

1. Put your refund into a saving account
   For people claiming some of the unique tax credits that benefit hardworking families around the country such as the Earned Income Tax Credit and the Child Tax Credit, their tax refund may be the largest sum of money they will see the entire year. By opening a savings account, you can deposit a portion or all of your refund and let the amount grow over time. Luckily, you can do this using the IRS Form 8888, which will divide your refund over multiple accounts.
2. Put your refund into a savings bond
   IRS Form 8888 now allows you to easily and seamlessly purchase Series 1 US Savings Bonds as you prepare your tax return! These 30-year bonds are backed by the United States government and they pay you interest yearly. Bonds are a great, low-risk option to grow your savings.
3. Get your taxes prepared for free
   If you make less than $55,000 a year, you can your taxes prepared at no-cost by IRS-certified volunteers in your local community! The Volunteer Income Tax Assistance (VITA) program has served millions of Americans for more than 45 years. If you qualify, you can find expert information to help demystify the tax code and to prepare your taxes.

Free tax sites in Boulder and Broomfield Counties:

1. AARP – Boulder East Senior Center, 5660 Sioux Drive, Boulder, CO 80303. Open 2/8/2019 - 4/12/2019, Tuesdays 8:30 AM to 11:00 AM. By appointment only. Call 720-475-6639 or on-line at https://cotaxaide.org/appt/.
2. AARP – Boulder West Senior Center, 909 Arapahoe Avenue, Boulder, CO 80302. Open 2/5/2019 - 4/9/2019, Tuesdays 8:30 AM to 11:00 AM. By appointment only. Call 720-475-6639 or on-line at https://cotaxaide.org/appt/.
3. AARP – Broomfield Senior Center, 280 Lamar Street, Broomfield, CO 80020. Open 2/8/19 - 4/12/19, Fridays 9:30 AM-2:30 PM, By appointment only. Call 303-464-5526, Mon-Fri, 8:00 AM-5:00 PM . 
4. AARP, Lafayette Library, 775 W. Baseline Road, Lafayette, CO 80026. Open 2/6/19 - 4/10/19, Wednesdays 10:30 AM-3:00 PM, By appointment only. Call 303-665-5200 or on-line at https://cotaxaide.org/appt/
5. AARP, Longmont Senior Center, 910 Longs Peak Avenue, Longmont, CO 80501. Open 2/5/19 - 4/11/19, Tuesdays and Thursdays 9:00 AM – 1:00 PM, By appointment only. Call 303-774-4429 or on-line at https://cotaxaide.org/appt/.English and Spanish language available.
6. AARP, Louisville Rec Center 900 VIA Appia Way Louisville, CO 80027. Open 2/4/19 - 4/8/19, Mondays 10:00 AM - 3:30 PM, By appointment only. Call 303-335-4919.
7. Longmont VITA, 2050 Terry Street, Ste. 101, Longmont, CO 80501. Open 1/30/19 - 4/13/19, Wednesday and Thursdays 6:00 PM-8:30 PM and Saturdays 9:00 AM-1:00 PM   No appointment required. E-mail for questions: [email protected] English and Spanish language available.
8. VITA, University of Colorado at Boulder, 995 Regent Drive, Leeds School of Business, Koelbel Building-Room 375, Boulder, CO 80309. Open 2/2/19 - 4/6/19, Wednesdays 5:00-7:00 PM, Saturdays 9:00 AM – 1:00 PM, No appointment required. First come, first served basis. Hours of operation may change due to adverse weather conditions. 

If you do not qualify for AARP or VITA services, or for some reason can’t use AARP or VITA services, you can use MyFreeTaxes, an online service that lets you prepare your own taxes for free if your income is less than $66,000.

For additional questions regarding tax preparation sites and tax credits visit: 211 online: https://211colorado.communityos.org/cms/TaxAssistance, call 211 from your phone or text 898-211.

These three steps are only a small sample of how you can leverage this annual process! Tax time can be confusing but you can maximize your tax return to build for a more sustainable future. Don’t delay and be sure to start your own saving story today!

 

Helpful websites at tax time:

http://www.coloradovita.org/

https://cotaxaide.org/ta/

https://www.irs.gov/refunds

https://bettermoneyhabits.bankofamerica.com/en/taxes-income

http://www.eitcoutreach.org/learn/tax-credits/earned-income-tax-credit/eligibility/

http://www.eitcoutreach.org/help/ EITC estimator

http://www.piton.org/eitc

 

ABOUT THE PERSONAL INVESTMENT ENTERPRISE (PIE) PROGRAM

The Personal Investment Enterprise (PIE) program is a local savings program provided through Community Action Programs of Boulder County and Foothills United Way. The program is designed for low-income families to enroll in financial literacy classes and save through a matched saving account at a rate of 4 to 1. The first step in applying to the program is to attend an orientation meeting with Nino Gallo at Community Action Programs at Boulder County. Nino may be reached at 303-441-3998 or at [email protected]. For more information on the PIE program visit http://www.bouldercounty.org/family/financial/pages/pie.aspx.