Extension Report

Baldwin County Extension Office

302A Byrne Street

Bay Minette, AL  36507

Telephone (251) 937-7176 or

928-0860/943-5061 ext. 2222

FAX (251) 937-7285

Rick Zapata

Regional Extension Agent

Consumer Science & Personal Financial Management

January 18, 2011

Even though it is still January, it is a good time to prepare for our annual tax season.  The time to prepare for this tax season really should have begun on January 1st, 2010 with a good system to keep up with deductions. One of the reasons that people pay more tax than they should is the loss of receipts for legal deductions. One suggestion is to keep a large manila folder in your home to keep your receipts safe. If you keep your receipts in your car during the summer months, most of them will not be useful because the ink fades where they cannot be read. It is just this simple; the more receipts you have; the less tax that you will pay.

There is a service that you can use that is provided for low income people to file their income tax returns. It is called VITA (Volunteer Income Tax Assistance). Volunteers who have been trained by the I.R.S. will prepare returns free of charge to those who qualify. At the end of this article is a list of VITA sites in Baldwin County. If you are in Mobile or Baldwin Counties, you can call 211 for more information and VITA site locations.

Also, the 2010 income tax rates will carry over into 2011. Most people will not need to adjust their withholding tax rates. One thing to consider is to adjust your withholdings so that you can break even at tax time instead of getting a refund. If you do not do this, you are giving the government an interest free loan for the year. Getting more take home income can help off-set the monthly increase in the cost of gas or groceries. For those who have children at home, don’t forget the Earned Income Tax Credit. This credit provides extra income back to you for the costs associated with raising children. The income level for a family has been increased and some grandparents raising grandchildren will also qualify.

Also, the Child Tax Credit has also been used to help families supplement their income. This credit can be up to $1,000.00 per child.

There is also a tax credit available for those people who work. It is called the Making Work Pay Credit. For workers earning up to $75,000 ($150,000 for joint filers), there is a maximum of $400.00 ($800.00 for married couples) available for a tax credit payment.

For those who received payments from BP Oil Co. or the government agencies who are giving out funds, please remember that these payments will be subject to income tax. Also any unemployment benefit payments may be taxable. If you are not sure what is taxable or not you can go by the IRS office in Mobile (1110 Montlimar Drive) and talk with them for free. You can also go online to www.irs.gov  and get income tax information.

Baldwin County Agencies who will participate in the VITA tax preparation are:

Community Action Agency 251-626-2646

26440 North Pollard Road

Daphne, Al. 36526

Goodwill Easter Seals 251-433-4900

199 Hwy. 98

Fairhope, Al. 36532

Goodwill Easter Seals 251-433-4900

201 Faulkner Drive

Bay Minette, Al. 36507

Goodwill Easter Seals 251-433-4900

200 W. Michigan Ave.

Foley, Al. 36535

Pond Management/Aquatic Weed Control Workshop

There will be a Pond Management/Aquatic Weed Control Workshop on April 16 from 1:00-3:00 p.m. at the 5 Rivers Delta Center. To register for this workshop, call Shonda Borden at 251-625-0814 or email ShondaBorden@dcnr.alabama.gov. Registration is critical because there is a minimum number of attendees that must be met to have the workshop.

Phone: 937-7176 or 943-5061, 928-0860, ext. 2222

The Alabama Cooperative Extension System (Alabama A&M and Auburn Universities) in cooperation with the U.S. Department of Agriculture is an equal opportunity educator and employer.