Tax center assists servicemembers as filing deadline approaches

  • Published
  • By Staff Sgt. Rachel Martinez
  • 35th Fighter Wing Public Affairs
MISAWA AIR BASE, Japan --  As the April 15 tax filing deadline approaches, servicemembers overseas are receiving an extension. Military personnel serving outside the United States receive an automatic two-month extension to file 2008 tax returns and pay any federal income tax due.

Interest will be charged on any taxes owed from the due date until the taxes are paid, warned Angie Barber, Misawa Tax Center representative.

The tax center is available to assist anyone who has not filed their taxes yet. Operating five days a week, 29 trained volunteers prepare state and federal tax returns free of charge. Since opening its doors Jan. 26, the tax center has already prepared nearly 900 federal returns and more than 400 state returns. The volunteers' tax preparation work has yielded more than $2.2 million dollars in refunds for Misawa residents.

Almost 1,000 base residents have taken advantage of the free tax preparation at the tax center. Mrs. Barber said there is still time for those people who have not prepared their taxes. June 15 is the last day the tax center is officially open.

"But we will be available for questions or assistance until June 30," said Mrs. Barber. "After that, the taxpayer must contact the base legal office."

Paying taxes is nothing new. However, there is a new tax credit this year people should be aware of, according to Mrs. Barber. The Making Work Pay tax credit is part of the American Recovery and Reinvestment Act. In 2009 and 2010, this provision will provide a refundable tax credit of up to $400 for working individuals and up to $800 for married taxpayers filing joint returns, according to the Internal Revenue Service Web site. The tax credit is typically handled through automated withholding changes that may result in an increase of take-home pay, the IRS Web site stated. Servicemembers may have seen this withholding change in their April 1 pay check, said Mrs. Barber.

"This means they may receive a smaller refund at the end of the year," said Mrs. Barber. For people who already receive a small refund, this change may result in them owing taxes at the end of the year. "You will have to adjust your withholdings to compensate."

To learn more about the Making Work Pay tax credit, visit the IRS Web site at www. irs.gov. Mrs. Barber said the Web site also contains great information for small business owners and rental property owners.

Finally, Mrs. Barber reminds people to keep all tax records for seven years.

"Please PCS with your tax records; do not put them in storage," she said. "Also, the more prepared people are, the quicker their tax experience will be over for another year."

To contact the Misawa Tax Center, call 226-3948.