Every year AARP and CASH (Creating Assets, Saving and Hope) Oregon operate a multitude of free tax preparation sites throughout Multnomah, Clackamas and Washington Counties.  These tax sites are staffed with volunteers who have undergone over 40 hours of training so that they can best help you to file your taxes! This is a great service, aiding you to get the most of your taxes without having to pay someone to do it -- more money saved! Within Portland there are tax sites in almost every neighborhood, just make sure you check with the site in advance to see their hours, qualifications and if an appointment is necessary.

Use the AARP tax site location finder to search for a tax site by zip code.

Native American Youth and Family Center (NAYA) and El Programa Hispano also have free tax prep services.

To set up an appointment, ask questions and find out more information about free tax preparation, give the CASH Oregon office a call at 503-243-7765, NAYA at (503) 288-8177 ext 319 or El Programa Hispano at (503) 669-8350.

Are past student loans getting in the way of enjoying life? Do you have trouble keeping track of your debt? Does it feel like there is no end to recovering the costs of your education?

Come to our seminar and start taking steps to deal with student loan debt! In this workshop participants will learn how to take an inventory of outstanding student loans, keep student loans in good standing, and create a manageable plan for repayment.  Other topics of interest will include: the consequences of student loan default, how to rehabilitate student loans that are in default, the Income Based Repayment plan and its benefits, and the Public Service Loan Forgiveness program.

When: Tuesday, February 8^th 2011, 4:30-6pm

Where:  New Columbia Opportunity Center, 4610 N Trenton, Portland

To Register: call/email Talia: (503)-943-5620, talia@innovativechanges.org.

The seminar is $5 and fee waivers are available for those who qualify.

* Every month we answer a question or give advice based on a scenario that someone sends us. If you would like financial advice on something you're facing in your life, email Talia at talia@innovativechanges.org or call her at 503.943.5620. All situations and questions will be kept anonymous.*
                        

Dear Refund Ready,

Refund Anticipation Loans, or RALs, are short-term loans that are secured by a tax payer's expected refund and often have very high interest and fees associated with them. When all the costs of a RAL are added up, taxpayers can end up spending more than 10% of their refund just to get the money a few days sooner. RAL lenders often target low-income borrowers who are in a bind. In 2008, Oregon workers lost $23 million in fees paid on RALs, RAC (Refund Anticipation Check) and unnecessary tax preparation fees. All of these extra costs are avoidable. To avoid taking out a RAL here are some tips:

·File your taxes electronically to speed up receiving your refund. Free electronic filing is available here: www.irs.gov/efile

·Consider getting a bank account if you don't have one already. If you opt for direct deposit into your bank account, your refund gets to you faster and you can also avoid check cashing fees.  If you are interested in talking about what kind of bank account will work for you, contact us at Innovative Changes: 503-943-5620.
 

·Visit a free tax preparation site for advice (information above).

· If you receive a special letter from the US Department of Treasury you can sign up for a MyAccountCard Visa, a prepaid debit card. With this low-to-no fee card you can: receive your tax refund faster, keep your refund safe, avoid check cashing and overdraft fees, get cash, add to your card and receive free balance updates online or by calling toll-free anytime. No credit check or prior bank account is required. Visit the site to sign up or find out more about the card. Consider whether you need your refund as soon as possible, or whether you can afford to wait for your refund and benefit from the extra cash that you will receive.

· Contact the Taxpayer Advocate Service - If you are suffering an economic hardship and need your refund quickly, the Taxpayer Advocate Service may be able to assist you. Call 1-877-777-4778.

If you do see a RAL as your only option, make sure that you are aware of all the associated fees. Read the fine print, borrow realistically rather than hopefully and come up with a plan for paying it back on time so that you are not slammed with more fees.

To avoid RALs in the future, consider budgeting your tax return to last you throughout the year, setting up a savings plan and looking into the Advanced Earned Income Tax Credit (AEITC). If you qualify for the AEITC (you must be working and have children) you can receive a portion of your tax refund in your paycheck throughout the year, so you receive more month to month. Visit the IRS page here for more information and to see if you are eligible.

Good luck with your taxes!

-Taxpert

Thinking about what to do with your extra tax money? Want to invest your money in a safe way? Look into a Tax Time Savings Bond. 
 

 This is a really easy way to set aside money in savings for yourself or a loved one at no risk.  You can choose to have the bond deducted from your income tax refund while you're doing your taxes. Ask your tax preparer, or use Form 8888 if you're doing your taxes on your own. Tax Time Savings Bonds are part of US Savings Bonds (available for purchase all year round) that are backed by the United States Treasury. You can buy between $50 to $5000 in savings bonds, which will grow at an interest rate of .74%. There are no associated fees (you pay $50 for a $50 savings bond) and you can redeem your bond at a local bank or credit union after 12 months (or wait for up to 30 years!).  
 

For more information, ask your tax preparer, ask us, or visit the website.

Sign up for our Financial Household Stability classes today! With classes on Making Ends Meet, Budgeting and Saving, Hands-on Banking and Repairing, Building and Protecting Credit-- these classes can be taken individually or as a series and are meant to supply you with tools to organize your finances and plan for a strong financial future! The classes will be taught at two different locations throughout January and February:

Saturdays,  January 22- February 12, at the Broadway Vantage Apartments, 8340 NE Broadway, Portland from 11am-1pm

Thursdays, January 20- February 10 at the New Columbia Opportunity Center, 4610 N. Trenton St., Portland, from 4pm-6pm

Registration is required and classes are $5 each or $15 for the entire series. Fee waivers are available for those who qualify. To reserve a spot, visit our website, or contact Talia at (503)-943-5620.