WHO WE ARE (DATA AS OF 4.17.18)

Advocate for tax credits,

asset building, and consumer

protection

515 volunteersgive 22,609

hours

10,345 received

$21 million in refunds

$1.9 million saved by

1,290 people

150+ receive

financial coaching every 6-months

Lead the Financial Access in

Reach (FAIR) initiative

YOU WILL LEAVE KNOWING…

• All of Prepare + Prosper’s free services

• Who should file taxes

• Tax credit basics

• Ways to get involved

TAX AND FINANCIAL SERVICES

FREE TAX PREPARATION

IRS-certified volunteers, who are passionate about taxes will help you get the maximum refund

WHAT CAN WE HELP WITH?

• Year-round tax assistance (state & federal)

• Self-employed

• Remote Tax Preparation

• Apply or renew an ITIN

• Previous year returns

• Amended tax returns

• Language interpreters: Spanish

Imagine a time when savings

would’ve made all the difference.

DO YOU QUALIFY?

Annual income qualifications:

Individuals = $35,000 or less

Families = $55,000 or less

Self-employed = $55,000 or less

BRING YOUR DOCUMENTS

1. Personal information

2. Year-end income statements

3. Education and child care credits

4. Property tax refunds and deductions

5. Additional documents

FIND A TAX SITE

• Prepare + Prosper Main office(Prospect Park, St. Paul)

• Hallie Q. Brown Community Center (Summit-University, St. Paul)

• Merrick Community Center (East Side, St. Paul)

• Minneapolis Urban League (North Minneapolis)

• East Side Neighborhood Services (Northeast Minneapolis)

• Hope Community, Inc. (South Minneapolis)

• Sabathani Community Center (South Minneapolis)

• Creekside Community center (Bloomington)

• Resource West (Hopkins)

FIND A TAX SITE

• Appointment Sites – Visit prepareandprosper.org or call 651-287-0187

• Walk-in sites– Everyone present at sign-in time has a chance to be

served, order is randomized through a computer program.

• Self-employment sites– Those who made more than $6000 must make an

appointment at P+P main office tax clinic

– Open Mondays & Wednesdays

INTEGRATED FINANCIAL SERVICES

Tax time is a money moment: • Boost your emergency savings with a

saving account• Invest in a kid’s future with a U.S. savings

bond• Request a free copy of your credit report • Conquer your debt working with a financial

counselor • Sign up for Money Mentors: free financial

coaching

WHO MUST FILE

If your filing status is… AND at the end of 2018 you were…

THEN file a return if your gross income was at least…

SingleUnder 65 $12,000

65 or older $13,600

Married filing jointly

Under 65 (both spouses) $24,000

65 or older (one spouse) $25,300

65 or older (both spouses) $26,600

Married filing separately Any age $5

Head of householdUnder 65 $18,000

65 or older $19,600

Qualifying widow(er) with dependent child

Under 65 $24,000

65 or older $25,300

WHO SHOULD FILE?

• Taxpayers who…

– Had income tax withheld from pay

– Qualify for the Earned Income Tax Credit

– Qualify for the Working Family Credit

– Qualify for the Additional Child Tax Credit

– Qualify for the Premium Tax Credit

– Qualify for American Opportunity Credit

– Qualify for the K-12 Education Credit

– You rent or own a home

TAX CREDITS TO KNOW

Earned Income Tax Credit (EITC)

Child credits

Education credits

Property Tax Refund

Premium Tax Credit

EARNED INCOME TAX CREDIT

• Refundable federal credit for all who worked in 2018

• Eligibility is based on income and family size

• MN version is called Working Family Credit

• Must have earned income

# of qualifying children

Single/head of household, income less than:

Married filingjointly, income less than

MaximumCredit (up to):

0 $15,270 $20,950 $519

1 $40,320 $46,010 $3,461

2 $45,802 $51,492 $5,716

3+ $49,194 $54,884 $6,431

WHAT IS EARNED INCOME?

Includes: • Wages, salaries, and tips

• Net earnings from self-employment

• Union Strike benefits

• Military combat pay

Doesn’t include:• Non-taxable earned

income– Payroll deductions for

dependent care or retirement plans

• Public Benefits– Social Security, SSI, welfare

• Other income, such as:– Unemployment

– Alimony and child support

– Interest on bank accounts

EITC DELAY SAME IN 2019

• Federal tax refunds will take longer for EITC and ACTC recipients

• IRS will begin processing refunds Feb. 15

• Prevent against fraud and identity theft

• No one can get you refund faster

• File taxes as planned at a Free site

CHILD TAX CREDITS

Child Tax Credit (CTC)• Tax credit for families that work and claim a child

age 16 or younger

Additional Child Tax Credit (ACTC)• Eligible for CTC, but cannot claim it because

taxes are too low• More than $3,000 earned income and at least 1

qualifying child• Child and parent must have SSN not ITIN • Maximum credit amount $2,000

• NEW 2018: $500 non-refundable credit for dependents who don’t qualify for the CTC, such as children above 17 or elderly parents, or dependents with an ITIN

WHO IS A “QUALIFYING DEPENDENT”*

Relationship

Age

Residency

Support

Marriage

Legal entitlement

*This is a general guideline. Some exemptions could apply. It’s based on YOUR personal situation!

MN K-12 EDUCATION CREDITThe cost of school supplies can add up.Keep your receipts for tax time savings!

Maximum credit amount• $1,000 per child

Who is eligible?• Dependents in grade K-12• Meet income limits, which is $37,500 for

families with one to two children and $2,000 higher for each additional child beyond two

• Have itemized receipts of expenses (see handout for qualifying expenses)

AMERICAN OPPORTUNITY CREDIT

• Helps make post-secondary education more affordable

• Covers qualifying expenses, like tuition, fees, required course materials.

• Enrolled at least half time

• Must have 1098-T and itemized receipts

• Maximum AOOC amount is $2,500, up to $1,000 refundable

• Non-refundable credit available for unlimited amount of years for students.

• Covers qualifying expenses, like tuition and fees.

• Must have 1098-T• Maximum credit $2,000

LIFETIME LEARNING CREDIT

PROPERTY TAX

HOMEOWNERS• Household income less than $113,150• Owned home on both January 2, 2018 and Jan 2, 2019• Need a 2018 Property Tax Statement from county

(receive in March)

Maximum credit amount• $2,770 for homeowners• Based on income and property taxes paid in 2018

RENTERS• Household income less than $61,320• Need a Certificate of Rent Paid (CRP) from landlord

(receive by Jan 31, 2018)

Maximum credit amount• $2,150 for renters• Based on income and property taxes paid in 2018

PREMIUM TAX CREDIT

• You and every family member listed on your return must have health coverage for the year or qualify for an exemption

• To qualify, you must have purchased health insurance through MNsure and need Form 1095-A

• Individuals on Medicare, Medical Assistance, or Minnesota care are not eligible.

W-4 INFORMATION

• Determines how much money to withhold from paycheck – ensures you pay the right amount in taxes

• Claiming “allowances”• Claim one for yourself, one for your spouse,

and one for each dependent• Can claim additional allowances in certain

situations• Always fill out the form to the best of your

ability• Complete a new W-4 for every life event:

marriage, birth of a child, getting/losing job

2019 ITIN CHANGES

• Unused ITINs: ITINs not used on a federal income tax return in the last 3 years

• Expiring ITINs: ITINS issued before 2013 will begin expiring this year, and taxpayers will need to renew them on a rolling basis. The ITINs with middle digits: 73, 74, 75, 76, 77, 78, 79, 81 or 82 will be expiring

• IRS mailed notification letters

• Schedule for future expiration and renewal of ITNS are TBA

MONEY MENTORS

• 2 hour commitment a month – One-on-one coaching (1 hour)

– peer learning session (1 hour)

• 6-month cohort commitment

• Not financial planning / or advise

• Coaching/peer learning to help people reach their financial goals and find accountability in doing so.

WHAT IS FINANCIAL COACHING?

An individualized process that helps people take action to reach their financial goals

Based on trust

Assumes “creative, resourceful and whole”

Techniques from positive psychology and emotional intelligence

Future-focused on behavior change

Action oriented

If there’s no action step at the end it’s been a nice conversation, not

financial coaching.

MONEY MENTORS

• Multiple entry points throughout the year (every 3 months we start a new co-hort)

• If interested apply here

FAIR:Financial Access in ReachA new way of banking designed to work for the un(der) and unhappily banked

THE UN(DER)BANKED MARKET

194,400 households in the Twin Cities

328,000 households in

Minnesota

32.6 million households

nationwide

< $15k33%

$15k -$30k24%

$30k -$50k19%

$50k -$75k15%

> $75k9%

Black28%

Hispanic26%

Asian14%

White10%

Other22%

Source: 2017 FDIC National Survey of Unbanked and Underbanked Households.

THE FAIR PRODUCTS

THE FAIR PRODUCTS CONT.

FAIR FIT: CHECKING + SAVING

FAIR may be a fit for someone who...

-Has a imperfect banking history and gets turned away by other banks

-Has an account but is paying high and unpredictable fees, like overdraft

-Comfortable banking online or mobile app (or wants to try!)

-Has a smartphone with a data plan OR secure internet access

-Gets paid via check or direct deposit

-Doesn’t rely on cash

FAIR may NOT be a fit for someone who...

-Has a history of actual bank fraud

-Has limited digital literacy

-Has no smartphone or internet access

-Doesn’t feel comfortable with banking online/mobile

-Likes doing their banking in person

-Doesn’t have access to direct deposit for their income

-Prefers operating in cash

FAIR may be a fit for someone who...

-Has no score or a low score

-Has no or few active trade lines

-Is willing to make improvements in overall credit profile

-Can pay monthly expenses in addition to the $30 payment each month

FAIR may NOT be a fit for someone who...

-Already has good credit

-Already has credit cards that are maxed out or large accounts in collections with no ability to repay

-Is struggling to pay basic bills of has habit of missing bill payments

-Is in or contemplating foreclosure or bankruptcy

FAIR FIT: CREDIT BUILDER

ADDITIONAL RESOURCES

• Free filing <$66,000 myfreetaxes.com

• Portico Healthnet 651-489-2273

• Mid-MN Legal Aid 612-334-5970

• Where’s my refund irs.gov/refunds

CONTACT INFORMATION

Alica Whitmore

Outreach Coordinator

alica@prepareandprosper.org

651-262-2158

Website: prepareandprosper.org

Like us on /prepareandprosper

Follow us on @PrepareProsper