Occasionally, a news item will come across my desk that will cause me to do a double take. This story, reported on the PR Newswire, was one of those items: Wal-Mart will offer free tax filing services to eligible taxpayers in its parking lots.
Just let that sink in for a minute.
In fairness, it sounds a little more odd than it is. Wal-Mart Foundation has teamed up with United Way and One Economy Corporation to launch a free mobile tax filing clinic. The clinic will be staffed by IRS VITA (volunteer income tax assistance) volunteers and will be set up in Wal-Mart parking lots and office for two to three weeks at a time between February 10 and April 11. To find a parking lot location near you, visit www.myfreetaxes.com.
Individual taxpayers earning less than $56,000 per year will be able to file their taxes free of charge. Specific emphasis will be on making the EIC (earned income credit) available to lower income families.
The Foundation estimates that it will save taxpayers nearly $45 million in tax preparation fees. Now that’s rolling back prices.
It’s also brilliant marketing. If taxpayers find out that they are getting a few dollars back on their income tax return this year, they might be inclined to, say, spend those dollars at Wal-Mart. Just saying.
Taxpayer asks:
my son gets ssi payments he has autisim, adhd, and asburgers disorder he is 19 years old now can he still get earned income the h&r block said he dont get it anymore let me know
Taxgirl says:
To claim the EIC you must meet certain income and filing criteria. In addition, if you claim EIC with a qualifying child, your child must meet three tests. The three tests are:
- Relationship;
- Age; and
- Residency.
To meet the first test, the Relationship Test, a child must be your: natural child, legally adopted child, stepchild, foster child, or descendant of any of them (such as your grandchild) or the sibling, half sibling, step sibling, or descendant of any of them (for example, your niece or nephew).
To meet the second test, the Age Test, your child must be: under age 19 at the end of 2008, under age 24 at the end of 2008 and a student, or permanently and totally disabled at any time during 2008, regardless of age.
To meet the third test, the Residency Test, your child must have lived with you in the United States for more than half of 2008.
Assuming that you meet the other income and filing criteria, the problem likely does stem from your son’s age. I’m guessing, from your question, that your child turned 19 in 2008 as opposed to in 2009. If that is the case, he wouldn’t qualify under the Age Test.
This sounds a situation where some tax planning would benefit you. I would strongly suggest that you contact a tax professional who can look at your overall situation and make some recommendations as to the best plan moving forward. Good luck!
Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.
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