Volunteer Income Tax Assistance

Tax season is over and I stopped blogging near the beginning, so I haven't had a chance to share about my experiences. As some readers will know, I've worked with taxes the last four years as a part of the Volunteer Income Tax Assistance (VITA) program. The program is established by the IRS and includes training (online or book) and certification to assist taxpayers with their taxes. We use software designed specifically for the VITA preparers and have support from the software company.

Locally, the program is coordinated by the United Way, who provides laptops and additional "volunteers". I put the word "volunteers" in quotes as the people are typically Americorps workers. I don't know a lot about Americorps, but I think the workers get a small stipend (and medical benefits) for their work and have to provide a certain number of hours. They can use their VITA time as a credit for those hours.

This year I went through certification to the Advanced level (Basic-> Intermediate-> Advanced) and stepped up to Site Coordinator certification. (last year I didn't do Site Coordinator, but did Military, Cancellation of debt and Health Savings Account certification). I also stepped up to the responsibility of Site Coordinator 1/2 time at one of the sites where I work.

This year we had to take an ethics test as a part of certification. The ethics questions were VERY basic, but the scary thing is that you know someone has violated each of the codes they gave us.

As a part of the program, we're not allow to discuss any details about the taxpayers. I can tell you that this year was busier than the last two years. I also believe that I processed less W2-G (unemployment) forms than previous years. I think these two facts show that more people have jobs. They may be lower paying jobs than they had previously, but they have jobs.

I also think I did more past-year (2010 & 2009) taxes than in previous years. These are people who didn't file for some reason or another (one person said he was asleep that year - must've been a good nap!) and they want to get caught up. It makes me feel good to help people like this. As someone who pays a lot of taxes, I'm always anxious to help others pay their fair share.

There were some low points to the year. A few people seemed intent on cheating the system or making up numbers. One man came in the last day (we were slammed and a volunteer short) and wanted me to do his 2010 taxes. I was unable to help him. He honestly believed he didn't need to file, as he was retired. The IRS sent him a letter explaining differently. I felt bad for him, but simply didn't have time. I did do his 2011 taxes.

Lessons for next year is for me to start earlier. The site coordinator role was less intense (but more nerve-racking) than I imagined. But there was more training available that I could have used greatly. Also, I should have done the training on Cancellation of Debt (one case came in, I handled it after a lot of research) and Health Savings Account (three taxpayers needed help - two were family). These areas aren't so complex, but a refresher would have been good.

I also had a chance this year to explain to a fellow conservative IN DETAIL how the Earned Income Tax Credit works. It was an enlightenment to him that I had so much information and that some of his information was wrong. Any reader who wants to know more, or thinks the program is full of holes, needs to send me a note and I'll help them understand the details. I'm not justifying the program, I'm saying this is how it works and if you want to eliminate it, you have to say so explicitly (my biggest complaint with the "Fair Tax" and 9-9-9).

I plan to continue and to be site coordinator again next year (if needed). The work is very rewarding. I tried to recruit a couple of people this year and failed. Next year, won't you help? I'll be glad to help with training and information.

My name is RB and I endorsed this message - Platform priorities

Yesterday I explained that I wanted to lay out what I thought were important priorities for the Presidency 2012-2016. This will be the planks of my platform should I decide to stick with the idea of the run (it will have to be a write-in campaign).

In preparation, I looked back at what I said in 2008. I think the same issues apply, so I'm going to steal heavily from my ideas back then. One difference I notice between 2008 and 2012 is the lack of focus on change. In 2008, almost every candidate was talking change (both the D's and the R's). Well, change happened, we went from a Republican in the White House to a Democrat. Some might say too much changed, some might say too little. But change happened.

My focus will be pretty much the same as last time, with some change thrown in for good measure. Here are the areas I see that need to be addressed for the next four years. This post won't tell you my opinion on any one topic, but instead will list topics I intend to cover later. They will be somewhat in priority order, but that's subject to change (there's that word) later on.

In my platform, I intend to address these topics:
1. National Defense - Iraq is over. Afghanistan will be soon. The current budget outlook for defense means major cuts. We're relying less on boots-on-the-ground and more on drones-in-the-air and special ops. Where do we go from here?

2) Foreign affars - Russia, Pakistan, Iran, India, Europe, Africa, South America, China (including trade) and Mexico (including immigration) - My only update to this list is to add the Middle East (Egypt, Libya, Israel, Syria, etc) and North/South Korea

3) Isolationism vs. becoming entangled in the affairs of other nations - it seems one candidate wants us to pull back and focus on US alone, I'll look at my ideas four years ago and update them.

4) National economy - Jobs, training, mortgages, housing, taxes and spending. I know you think this should be higher. When I look at the economy, I'll explain why it's ranked #4.

5) Healthcare, education and abortion, global warming, carbon credits (hopefully, I'll explain why I grouped these)



6) Points of light - This is an old George H Bush idea. I mentioned it yesterday in a phone conversation with a friend and think it needs to be addressed.

What did I leave out? What do you, the voter and my readers, want me to address?

My response to Occupy Wall Street

Last week I published a summary of my interpretation of Occupy Wall Street. The movement has sprung up in many cities and appears to be similar in all of these. This is my response to those movements.

First, let me say that I get it. There's a lot of frustration out there. People are out of jobs and worse yet, they feel their future has been stolen by financiers who haven't been and won't be punished for their incompetence. People like Patrick Meighan have been arrested (read his story here) and jailed over non-violent protests. I know that there have been some criminal acts committed by some of the Occupiers, but that doesn't change the message these people are trying to bring (it doesn't excuse it, but that's a different story).

I also agree with parts of the message of the Occupy movement, the financiers should be punished. The banks should have been allowed to fail and the people creating the mess should certainly not be in charge of the business that I involuntarily bailed out. And like them, I'm not convinced that the system can work itself out - I'm just that cynical.

But I also know that we live in the United States of America, a country with a system of laws and that we have to obey those laws. Even if politicians and bankers committed fraud and theft, that doesn't give me the right to break laws. If someone refused to leave when instructed by police, they deserve to be arrested. When Mr. Meighan (same story as above) was arrested, he complained in his blog that in most situations of this type, "the police just give you a ticket and let you go. It costs you a couple hundred dollars." One thing that is different in his case is that he would have gladly taken the ticket and ripped it up and never left the park he occupied. Police have an obligation to enforce the law (which he acknowledges in his blog) and in that case that meant physically removing the Occupiers and cleaning out the park.

I also know that it's possible to move up in the world. I grew up in a not-too-priviledged environment. I won't go into the details, but my college was paid on a combination of scholarships and grants (until I lost the grant because I made too much in a below-minimum wage job). I have worked at one job or another (and sometimes two at the same time) since 1973. My father taught me that there is always a job available for someone who was willing to work. This past weekend, I heard that Scheider National Trucking needs to hire 41,000 and Pizza Hut needs to hire 28,000. These may not be jobs that people want or may not pay as much as their last job, but they are jobs. And they pay at least minimum wage.

I decided sometime back to adopt the slogan "Think Globally, Act Locally." What that means to me is to elect the kind of representatives who push an agenda of personal responsibility. I believe this is the only way (if there's a way) to fix our national problem. By encouraging people to work, even at low-paying jobs, to pay off debts and to support the family, politicians begin encouraging a way out. As for acting locally, charity begins at home, helping the people in your community. I can't help Mr. Meighan in LA, but I can help the single lady in our church who sells real estate and hasn't sold any in a while. I can help the people who will come to me in February through April to file their tax returns (without charging them) so they can get the refunds and credits that are available under current law. I can help the couple whose husband is in a wheel chair and unable to work.

So while I understand the Occupy movement, I can't say I agree with it. I believe that instead of protesting, the occupiers would be better of returning to work and starting their own personal recovery. That's my thoughts, what are yours?

The 9-9-9 tax and the flat tax

Herman Cain has gotten a lot of attention for his 9-9-9 tax plan. I've looked into one part of the plan and decided I can't support it. Your responses are appreciated.

The plan is close to the Fair Tax that was discussed a few years ago. I confess, I didn't study the Fair Tax as I felt it had near-zero chance of being passed. I was forced to go look at it some. From what I've read the 9-9-9 plan has not laid out all the details and someone pointed me to the "prebate" part of the Fair Tax for more information.

The problem is that low income people today pay no income tax and will be forced to pay sales tax under 9-9-9. This additional burden on low income people would be offset (under the Fair Tax) by a "prebate", money given to them at the beginning of each month.

However, there is no mention of what happens to the current EITC and it appears to be eliminated. For those unfamiliar, the EITC is a refundable tax credit given to low income workers. The amount of the credit is based on the family size and the amount a person works. As the person's income increases, the EITC increases until it reaches a mid-point. Then it decreases, slower than the increase, until it gets to zero. Think of a standard curve, slightly skewed to the right.

EITC has been touted as "workfare, not welfare" because it encourages people to work. If the person has no earned income, they have no EITC. None other than conservative President Ronald Reagan pushed this program. You may not think the EITC is fair or that some people pay no income tax is not fair, but that's not part of my discussion today. Today, the EITC is the law and it gives low income workers additional cash. Taking that away may be revenue neutral to the government, but not to individuals.

Any tax plan that involves eliminating the EITC should include a plan (tax or otherwise) to address program. If a candidate decides not to replace it, he/she should clearly state that.

Tax on corporate jets

I've been told that I have a mind like a steel trap - it's just that sometimes, it won't open (somehow, I don't think that was intended like a compliment). But this talk about a tax or corporate jets has been stirring around in my mind lately and it has sounded vaguely familiar. After a little research using my favorite search engine, I found the Omnibus Budget Reconciliation Act of 1900 (OBRA-90).

Republicans and Democrats will remember OBRA-90 as the bill where President George H. Bush broke his "No new taxes" promise. According to this Connecticut Law Tribune article, it included "a new luxury tax on luxury autos, aircraft, jewelry and yachts." The thinking at the time was we can stick it the rich and make them pay dearly for those luxuries. After all, it would be fair, they have more money, why should they be spending it on frivolous items, when poor people can't buy gas and food? Not only would it stick it to rich, it would provide more tax revenue for the government to give to the folks who could buy gas and food.

However, the luxury tax didn't work out quite as well as expected - it "took in less than one half of the projected income." People who previously could afford these luxuries simply stopped buying them or - even worse - bought them overseas. "Boat Builders ... were particularly hard-hit with yacht sales dropping 77 percent and builders laying off an estimated 25,000 people." Wait a minute! A tax increase caused job losses? 25,000 of them? I thought the luxury tax was supposed to stick it to the rich? Instead, 25,000 boat builders, average middle class people, lost their jobs? Who'da thunk it?

Any new taxes on corporate jets is likely to have the same effect. Anyone who proposes these taxes needs to look back to recent history and explain why they think this time will be any different. Oh, by the way, OBRA-90 also "included the Budget Enforcement Act of 1990 which established the "pay-as-you-go" or "PAYGO" process for discretionary spending and taxes." (source) and we all know how well that has worked.

Side notes: I found out that none-other than Lion of the Senate Ted Kennedy supported the luxury tax (no surprise), then when his home state of Massachusetts was affected, tried to reverse course with the Kennedy Boat Building Investment Act of 1999. (can anyone say flip-flop?). I do not know if he was successful. I also found this George Will commentary written in 1999. In it, he said "But perhaps every quarter-century or so government--it cannot help itself--must go on a fairness bender, the memory of the hangover from similar misadventures having faded." - Let's see, the last time was 1990, this is 2011 - that's only 21 years. Maybe the cycle is shortening due to Global Warming....

In full disclosure I have to document that I have never owned a luxury car or yacht and never owned a corporate jet. I did own a canoe for a few years, but after it flipped on me once I decided to sell it. I think I had a net loss of $50 on the purchase/sell over a 3 year period. I did not claim the loss on my taxes.

How to un-elect your local politician

Seems that in Florida, voters have gotten wise and un-elected their Mayor. Seems the Mayor was "politically tone deaf during troubled economic times", easily shown by raising taxes and raising the pay and benefits for public employees.

Citizens of Miami-Dae have overwhelmingly voted to kick this Republican, soon-to-be former Mayor Carlos Alvarez, out of office. Over 700 of the 809 precincts have reported in and 88% of voters favored the recall vote.

We should all take note of this action and we should print a copy of the article and mail it to our politicians. They can be un-elected.

(Full article is here)

Should I itemize on my taxes?

One of the most frequent questions I get from the folks who come to me to have their taxes done is "Should I itemize?" A lot of these clients don't even know what the question means, but they ask anyway. And the answer I always give is that we will look at their situation and determine the best answer, because the answer is different for everyone.

To explain what it means, the IRS gives everyone a standard deduction. You can choose to take the standard deduction or itemize. Typically, you will choose which ever gives you the best tax break (while it sounds silly, there is at least one good reason not to choose the best, but I'll ignore that for now). This deduction is the amount of your income that is not taxable. Supposed you're single and make $50,000 a year income. You won't have to pay taxes on the entire income, the first $5700 is not taxable.


The standard deduction as mentioned about is $5700 for single people or for married people who file separately. For married people who file together, the deduction is exactly twice the single deduction or $11,400. There is another class of people, Head of Household and their deduction is $8400. I won't go over those choices in this blog post, I'll assume you know which filing status you fall into.

In order to decide on itemizing, you can simply look at your items and see the total. If they total more than the standard, you're better off itemizing. So what items are significant? My experience is that home mortgage interest is typically the larges. If your home is mortgaged, you should get a from from your bank that tells how much interest you paid.

People of faith also tend to have charitable contributions. And of course we all pay state taxes, you can choose to deduct your state income tax or state sales tax. Don't forget real estate taxes and property taxes on your automobiles. If the total of all of these items exceeds the standard, by all means itemize.

There are two other areas that are common: Medical expenses and miscellaneous deductions. Each of these is subject to some minimums. For example, medical expenses that exceed 7.5% of your income are deductible. For the person listed above making $50,000, that's $3750. If your expenses are less than that or are covered by insurance, you can't deduct them. If your expenses are higher, you can only deduct the difference. For example, if your expenses are $5000, you can only deduct $1250.

For miscellaneous expenses (job travel, union dues, etc), these have to exceed 2% of your income.

I purposely omitted Casualty and Theft losses as they aren't that common. By all means you should study the law yourself and not take my comments as always true. But hopefully, this will help you decide if you want to itemize.

Fist Time Home Buyer's Tax Credit - Payback Time

If you're one of the people who bought a home in 2008 and received the $7,500 tax credit it's payback time. (For those who purchased in 2009 or 2010 and received the $8,000 credit, this does not apply, as long as you still own the home). The original First Time Home Buyer's Tax credit was actually a loan. The $7,500 has to be paid back over 15 years, starting this year.

The loan is interest fee, so you only have to pay back $500 each year. Form 5405 contains instructions for the payback. You also have to pay back the credit (either $7,500 or $8,000) if you keep the house less than three years. In this case, the amount is due back in the tax year that you sold the house. The amount of repayment is limited to any gain you might have on the sale of the home. Some other exclusions apply, but read the form and instructions for full details.

It may seem unfair to the 2008 home buyer that he only received $7,500 and has to pay it back while the 2009 or 2010 home buyer received $8,000 and he gets to keep it. Fair or not, that's the tax law. It's possible that congress would change to law to forgive the $7,500 loan, but my guess is, it won't. The current congress is more interested in reducing the debt than helping one small group of taxpayers. The realtors who fought so hard for the credit have now moved on to new buyers and aren't likely to fight for a tax break for the buyer from three years ago.

One bit of good news is that the $7,500 was real money. If you had taken that money and invested in a small CD making 2% interest (I know that's hard to find now, but let's assume), you would end up with over $2,000 at the end of the payback time. Of course, the intent of the tax credit was to stimulate the economy, so it's better if you actually spent that money instead of bankrolling it.

To itemize or not to itemize - that is the question

Ok, I'm not a poet. But someone asked me about itemizing deductions this week and I couldn't resist the title. So, should you itemize your deductions on your taxes? As always, the easy answer is "it depends."

For couples who file jointly, are under 65 and are not blind, the standard deduction is $11,400. That means you have to have deductions higher than $11,400 to make itemizing worthwhile. What can be itemized? Mortgage interest, state and local taxes (income tax or sales tax - but not both), real estate taxes, taxes on a new motor vehicle and gifts to charity are fully deductible. If these total up (or come close to) your standard deduction, then itemization makes good sense. In SC, taxes aren't high enough to force the issue alone, so mortgage interest and charitable giving usually are the factors that answer the question.

There are other deductions too. Medical and dental expenses that exceed 7.5% of your adjusted gross income is deductible. That sounds hard, but start by taking a look at your income and multiply by .075. If your medical expenses are more than that, proceed, if not, just let them go.

Years ago, someone told me you could deduct shoe polish. The logic was you polished your shoes for work, so it was a job expense. While I would question shoe polish under any circumstance, job expenses have to exceed 2% of your adjusted gross income. Most people that have a job that requires polished shoes have a high income and shoe polish won't come up to that much money.

By all means you should do the math every year to see if itemization helps you. Some people worry about being audited. My advise follows Will Rogers' saying "I'm happy to be an American and happy to pay my taxes. But I could be a lot happier for a lot less money." In other words, don't worry about being audited, do what's right, document your numbers and take every deduction that is legally allowed.

So what do you think? Will you itemize this year?

Taxes!!!

It's that time of year again, the time when we all start looking at income taxes. This year, we get an extra 3 days to fill out the forms, they aren't due until April 18. That's because April 16 falls on a Saturday. Confused? Well, April 16 is Emancipation Day, a holiday in Washington DC. This marks the anniversary of the date Lincoln freed the 3100 slaves living in the District of Columbia.

Since Emancipation Day falls on Saturday, residents of DC will celebrate the holiday (by taking a day off work) on Friday, April 15. Since tax returns can't be processed on a holiday, they aren't due until Monday, April 18.

We may need that extra time, because many people are being asked to wait until mid-to-late February to file. This IRS bulletin indicates that anyone who 1) itemizes deductions, 2) claims the deduction for higher education or 3) claims the Educator Expense Deduction should wait. Of course, you can start your return earlier, but you'll do better to wait until the final forms are available.

If you don't fall into one of the three categories above, you can start on your 2010 taxes anytime. If your income us $49,000 or less, you qualify to have your taxes done for free by IRS trained volunteers. Also, the IRS helps the elderly with their taxes. And there are many websites that allow free filing for taxpayers.

So start gathering your receipts and get your taxes ready. There are only 102 days left.

Tax credit for new jobs

Ok, one of the president's points the other night was to create a tax credit for companies that create new jobs. They can't lay people off and then rehire them, they can't eliminate one high paying job and hire two lower paying people, they have to be real jobs that are created (based on what I've heard - still haven't read all the details).

This sounds good. Someone said that this was tried in the 1970's and it didn't work. I remember a lot of things were tried in the 1970's that didn't work. Not sure why. Someone also said that companies need more business before they hire people. That's true. This tax credit would encourage businesses to speculate and invest ahead of new business.

Here's my problem with this idea. What has the current administration done to companies that were offered a bail-out, then were successful? Well, for GM, it was nationalized and handed to the unions. For banks that were given TARP money (which should never have happened), they paid back the loans WITH INTEREST and now they are being threatened with new taxes. Executives who put their jobs on the line are being threatened with large fees (when most of their "income" is in the form of long term stock options - not cash).

So let's play this out. Say Mom & Pops, LLC hires 4 new people and gets a $20,000 tax credit. Their business does well and they keep expanding. In 2011, the administration sees that they are successful and hits them with a "windfall profits" tax. After all, they got a bail-out credit, didn't they? Isn't it time they paid back?

I'm sorry, this administration has shown that they are willing to back-date decisions, I'm not sure this tax credit is safe.

VITA/TCE Certified

Ok, my long term readers are probably thinking, hey, I've read this post before. True, last year about this same time I did post an article with this same title (see here). They may remember that I volunteered (that's the "V") to provide Income Tax Assistance to low-middle income people as well as Tax Care for the Elderly (see how I snuck the acronym in there?). I reported last year (here) that I did taxes for about 100 people.

Well, I'm back at it this year. I passed the basic exam one day earlier this year (simple coincidence) and have decided to step up a notch and took the intermediate exam. I passed that one too, so I will be allowed to do slightly more complicated exams this year. We start doing taxes on January 30 and continue until that magic day in April (which my family knows the reason for the magic). I will do taxes on Friday and Saturday afternoons (assuming I get the slots I requested).

This year there are a few changes. There's a new $400 ($800 for joint taxpayers) credit called Making Work Pay. It requires a new form, but it's relatively simple. (Special note to my son - you don't get it because you're my dependent.) And of course there's the first time home-buyers credit, but few of my expected clients are likely to qualify for that (likewise the follow-up home-buyers credit). I'm prepared just in case as I helped out one tax payer after the tax crush last year with their form 5405 and I'm expecting to help another in May of this year.

As usual, one of the most complicated forms is for Earned Income Credit. Sadly, the people who need the credit the most are the least likely to understand. I never even try to explain Advanced EIC. And I spent a lot of time this year trying to make sure I understand the tuition tax credits. Did you know there are FOUR different ways to claim tuition credits? And the law has changed (for the positive) on what you can claim. This credit helps those who are in school (or paying for someone in school). I think it's great because in theory, this will result in a future big income and support for me when I'm collecting Social inSecurity.

I did my own taxes on paper for a number of years. For most people, it's not that hard. You don't have to go to some store-front tax location (that will be gone after 4/15) and pay a few hundred dollars to get your taxes done. If they are that complicated, it's worth paying a REAL professional to have it done. If you need help, look for a VITA site near you (search on VITA on the IRS website). Avoid those Refund Anticipation Loans (see here for another reason to avoid them).

I'll report back here in April with a final comment.

Tax Delinquency Sale

I have some vacation days that I need to burn (either use them or lose them), so yesterday I took a day to go watch a tax delinquency sale. This is for people who haven't paid their taxes on their property and they are about to lose them. I didn't plan to buy anything, I just wanted to watch.

Having no prior information except a list of properties for sale, I was ill-equipped for the process. I want to go back next year now that I know more. At this rate, I may be prepared to participate in 5 or 6 years. The people that were present looked like some "professional" buyers and some people trying to save their home.

First, there is a lot of protection on the person loosing their property. After all, we don't want to kick grandma out of the house. Taxes were due in January (almost 9 months ago) and notices were sent out last August/September. If taxes aren't paid on time, penalties accrue, then in March a delinquent notice is sent. If nothing is done in 30 days, a Notice of Seizure is sent. If for some reason this can't be delivered, a physical sign has to be posted. Then the notice is placed in the paper (what happens if newspapers go away?).

So after about 9 months, the property finally comes up for auction. But the buyer doesn't get a deed. According to our county website "The defaulting taxpayer, ... or any mortgage ... creditor may redeem each item of real estate within twelve months from the date of the delinquent tax sale." That means if the previous owner or his mortgage company want to, they can come back to the bidder and take the property (by paying all taxes plus interest).

The auction started shortly after 9am (which was good for me as I was late). One thing I had noticed was that there were several property owners who had multiple delinquent properties. In particular, one home builder had 189 properties listed. We didn't go through all of the properties, but went through many. The delinquent taxes were from $498 to $7512. Many properties went for $2000, some went for as high as $5000. I think a single bidder, #136, won all of the ones that were bid. (see below for why some weren't bid).

Some properties received no bids. These will go to the Forfeited Land Commission and be sold via sealed bid later. Some of the properties (not the ones mentioned above) sold for very high dollar amounts, over $100,000.

As mentioned, not all of the homes for a single delinquent taxpayer were sent out for bids. The website mentions that "as soon as sufficient funds have been accrued to cover all of the defaulting taxpayer’s delinquent taxes, no further items may be sold." Here's what I think that means. If you have 10 properties and owe taxes of $498 each, if the first property sells for $5000, bidding on the other nine is suspended. I'm assuming the delinquent taxpayer gets to keep them.

After about an hour or so, I decided I couldn't learn any more and was bored. I decided that the process seems to work, with the county getting taxes, but not necessarily more. The buyers are promised a deed eventually (takes over a year to complete), and are offered some restitution if they lose the property. I definitely want to see more of this, but I'm convinced I won't be buying any property this way for quite some time (after all, the next auction is a year away).

The secret to longer life - ever decreasing estate taxes

I've been reading a lot of financial websites and blogs lately, including Consumerism Commentary. The blog post for yesterday posed an interesting idea, that changes in estate tax law affect when people die.

The idea is this, when estate taxes are set to increase, people die just before the increase, thereby saving their heirs on their taxes. On the contrary, when estate taxes are set to decrease, they hang on until the decrease comes about, again saving their heirs some real dollars.

So, here's a simple way to increase the life span -- set estate taxes to decrease each year. Eventually, they will go to zero, so then we will need an ever increasing estate tax credit. That means if your relative dies and leaves you money, the government will kick in some more for in a tax credit. I can see the ads now, if Uncle Joe dies, we'll pay you $100. But wait, if he hangs on until next year, you will get $200.

Of course, the estate tax only applies to people who have an estate of over $3.5MILLION, so I'm out of luck. Guess I'll just have to pick another way to schedule my exit...

P.S. I wanted to put something in here about death panels, but couldn't quite figure out how to fit it in... I'm sure one of my commenters will find a way

My second and third TEA party and opposition

Last week I told you about my first TEA party. That was Monday, on Wednesday I went to one at lunch time in Simpsonville (the picture here were before the party started) and then I went to one Friday night that was much larger. And there was some opposition to the Friday night party.

The Simpsonville party was, by nature, small. I estimated around 100, the TV station there estimated about 200. Downtown Simpsonville isn't exactly a metropolis, so this was about what I expected. There was a single protester who had a sign saying "Obama's Will Help" (presumably, it meant his plan). The sign was quickly drawn on a cardboard box top. At the end of the meeting, signs were displayed with the number to call for the White House and for Congress. Everyone was encouraged to call one of the numbers and to let them know we were at a TEA party.

The Friday evening party was much larger. The police estimated 10,000, later estimates from the TV station with helicopter view estimated 6,000. The party was coordinated by the Upstate Young Republicans and there were several Republican speakers, but the crowd was far from died-in-the-wool Republican. When Congressman Gresham Barrett (who voted for TARP) was booed so loudly and longly, that his speech could not be heard.

There was also a counter-rally at the same time, behind the auditorium. I walked down there several times to get a feel for the rally. The meeting got off to a late start. Apparently, Leola Robinson-Simpson (see her webpage here) got tied up in the wrong meeting. My first thought was, if this lady, who is a Trustee for our local school board, was tied up in the wrong meeting, why is she leading our children? Scary.

The counter-rally actually was not so much anti-TEA (which would make it a coke party?), but a "Save Our Schools" (SOS) or anti-Sanford rally. For those outside SC, Mark Sanford is our Republican Governor. Because of term-limits, he's ineligible to run again in 2012 and appears to be positioning for a presidential run. He's spent the last 5 years as one of the new "young" right-wing conservative southern governors. He has, so far, turned down part of the stimulus money. There are many in the state who feel this is stealing from education. (SC has one of the worst education records of any of the 50 states.)

There were some "facts" given out at the SOS rally that I have questions about. To me, it sounded like the speakers were disappointed that the rally was so poorly attended. I did hear on the news that some of the participants moved to the TEA rally and a small ruckus broke out. Apparently, some TEA attenders asked them to leave (the news clip I saw showed SOS attenders yelling). But apparently, this was resolved without major incident.

My final thought for the day is that the TEA movement, while promoted by local radio and republican groups, is a big "grass roots" movement. The people attending are upset at government, but aren't quite sure why. The big test will be to see what happens from here.

My first tea party - Updated

Last night my daughter was surprised that I was going to a tea party. She probably thought the same as my son, who believed I was at a tea party with my niece (who has probably outgrown those parties). Surprisingly, when I searched on the Internet for details I found out they still have those kinds of tea parties in Laurens County, a southern genteel county about 30 miles from my home.

Instead, this tea party was reminiscent of the Boston Tea Party held in 1773. If you're a Mary Poppins fan, you know the initial event made the tea undrinkable, even for Americans. But more than that, it signaled a rebellion, a rebellion against a government that didn't listen to the people it governed. The current day tea parties, over 2000 scheduled to have occurred by the end of this week, also signal a rebellion -- a rebellion against government spending and a change in the philosophy of this country.

During the meeting that lasted slightly over an hour, I tried to keep myself from becoming engrossed in the speeches and to report the details. My goal was to learn what was really going on and to listen carefully to what was said. A good bit of the meeting was simply political presentations: one man running for congress, another for Lt. Governor, a state senator and a US Congressman. Much of it toed the right wing of the Republican Party line - anti-abortion, defense of marriage and anti-Obama.

But there were also some good points that were brought out that require more research - a call for thinner waste lines on government (pardon the pun), more transparency in government, accusations of overstepped constitutional bounds (discussion on six provisions in the Constitution given to government).

One of the most impressive speakers was Bill Connor, candidate for Lt Governor. Connor spent some time in Afghanistan serving our country in our efforts there. For that alone he garnered my respect. He also gained my attention when he spoke of the difference in English view of taxes and American views (fodder for another post). While I didn't agree with everything he said, I want to follow this man and see what his candidacy will look like.

Another speaker, Bobby Smith, Chairman of the Laurens County Republican Party pointed out that effort started with the individual, that we must not allow the government to be the source of our provisions. In a poor county like Laurens, this is a difficult step for a lot of people. Smith admitted this in his speech, but encouraged everyone to make the step. With the way the government rules over those it helps (see here), we should all heed those words.

The final speaker was Dr. Tony Beam, pastor and local talk radio host. Beam's speech outlined what I believe is the focal point for the tea party - it's not about taxes, it's about tyranny. His notes will be posted on the 'net later this week, once I find them I'll post a link.

To summarize, the tea party was a success. I counted close to 150 people and probably missed some (a local report said 200 - I don't doubt it). I hope to attend another party later in the week, maybe even two. My goal is to understand what is really going on and what all the talk is about. I'll report more of the ideas later.

* Update - Tony Beam's speech can be found here.

VITA/TCE Update - End of Job

Back in February, I proudly announced that I was VITA/TCE certified. This program (certified by the IRS) allows volunteers to help low income and/or elderly prepare their taxes. Locally, it's administered and coordinated by the United Way.

Since I've only been doing this on Friday & Saturday, this was my last week. After 23 sessions of about 4 hours each, I have prepared taxes for around 100 people. I also did state taxes for these people and in one case, NC state taxes. I would like to say that I thoroughly enjoyed the process and hope that I can do it again next year.

In all of these tax forms, I found exactly one person that might have been actively trying to skirt the law and exactly one person who actively avoided filing taxes (he "missed" at least two previous years and I think only filed this year at the urging of his girl friend). Two bad apples out of 100 isn't a bad record.

Some of the "customers" I worked with were young (20's or less) and some really wanted to understand the process. For these people I worked a little harder to explain the forms and make some suggestions. Some were older and were happy to have me talk to them as I punched buttons on the computer. Most went out of their way to be nice. One even hugged me. A couple were veterans and I thanked them for their service.

The funniest moment was when the Site Coordinator came in and announced "Sorry I'm late, I just got out of prison." Lots of heads turned as they wondered whether he would do their taxes. (He had been involved that morning with Prison Fellowship Ministries - Neil, you should use this line.)

Hardest moment was when a 3 year old flipped a fire alarm and I had to continue preparing taxes for others who had been waiting 2-3 hours with the siren blasting.

All in all, this was a good experience for me and I'm looking forward to more community service like this.

VITA/TCE Certified - Update

About a month ago, I reported that I was VITA/TCE certified (see here). I thought I'd offer an update.

VITA stands for Volunteer Income Tax Assistance and TCE stands for Tax Care for the Eldery. Locally, it's administered through the United Way, but the IRS provides the training material, the software we use and some of the hardware (some laptops). The goal is to help those with low-moderate income with their taxes. We do e-filing for both federal and state (SC).

I went through a few classes (it started out as six, but after the first three, much was repitition) provided by two VITA site coordinators. The key to remember in all of this is that V stands for volunteer (as in no-pay). At the end of the classes I had a good feel for the software, a better understanding of taxes, and a little bit of information on how the process works.

I've now spent three Saturday afternoons and two Friday afternoons preparing taxes for others (still haven't done my own yet). I've probably filed taxes for over 30 people (I wish I had counted). For their privacy, I can't say a lot about them, but I will say I have been pleasantly suprised at the attitudes. No one has gotten upset at me and with only one or two exceptions, they haven't asked the government to do more for them. Most are very polite, with several of the young adults being overly polite (yes sir, no sir, thank you sir).

There has been some challenges, like the 3 year old girl who pulled the fire alarm, but there have also been some very good points, like the three young boys, around age 10, who were quietly waiting for over an hour, then helped stack chairs while someone else helped their mom. We are looking for them to come back next Saturday to help stack chairs again.

The site coordinator at one of the sites I work came in this last Saturday and announced he was late because he had been in prison. I'm sure some of the taxpayers raised an eyebrow, but he later explained he was working with Prison Fellowship Ministries, like my blog-friend Neil.

I have another two months to go, but so far, I'm enjoying providing this service to others.

VITA/TCE Certified

Last night I took the Basic Exam for the Volunteer Income Tax Assistance (VITA) and Tax Care for the Elderly (TCE) Certification Course. It's pretty tough, with 30 questions ranging from filing status to dependency questions. You also have to fill out two complete 1040's along with supporting forms to answer some of the questions and then do a review of someone else's form. The test is administered electronically.

The big news: I passed!! I'm now officially certified. I've probable spent somewhere around 40 hours working on this and probably around 20 of those in the last 3 days. So this was a big victory for me.

Tonight I start the software training, 6 nights of classes, 2.5hours each night. Then I start preparing taxes the following weekend. Right now, I'm just enjoying looking at my laser printed - suitable for framing, certificate.

OK, I confess, I'm a hypocrite

My faithful readers know that I'm a conservative. Lower taxes, less government interference. If someone suggests additional government help for the jobless, I'll tell 'em to go get a job.

But when it becomes personal, I change my tune. And by personal, I don't just mean when it affects me. I mean when it affects me or those around me. Friends, neighbors, etc on an individual basis.

I've helped some people do taxes in the past and I went out of my way to make sure they got every dollar they could, even if it meant getting more in a refund than they paid in the first place. Maybe I don't agree with the idea of them getting money back that they didn't pay in (I never did), but if they have a chance of helping themselves, I'm all for it.

Same goes for welfare. I hate the idea of it. I think it's wrong. But if someone I know is entitled to collect some, I'll help them any way I can.

So why the hypocrisy? Basically, it comes down to this: if they don't take the money, it's not going to change anything, only make them poorer. By taking the money, they may be able to change their lifestyle.

This year, I've signed up to help with VITA - Volunteer Income Tax Assistance. I start my formal training next week (I've been doing some online training already). In respect to my clients-to-be, I won't blog about the details of anything I'll be doing. If I find that I can sprinkle tidbits into my blog, I might, but first priority has to be to protect the dignity and privacy of the people.

Wish me luck.