I’m interested to find out what services exist (in Toronto, Canada in particular, but in the USA as well) for persons who lack the mental capacity or knowledge to do their taxes (i.e. illiterate people or simply those who can’t wrap their heads around the details).
Will the government pay for an accountant? What is the general expectation in these situations?
Well, in the U.S., there’s no shortage of people who will do your taxes for you - there’s an H&R Block every 50 feet or so.
But more interesting is why you think people who can’t do their taxes are stupid. Are Canadian taxes really less byzantine than American taxes? Because there are legitimate reasons why Americans use these tax services.
I’m planning on using a service it this year because the complexity of my taxes will triple due to purchasing a house and cashing in stock options; chances are I will fuck myself out of more money than these places charge if I continue doing it myself. It’s really not that simple.
My logic is that if people are clearly incapable of doing their taxes through no fault of their own, then the government will perhaps pay for the taxes to be done for them.
The IRS will provide assistance to folks with disabilities, if that’s what you are asking. But not simply in cases where preparing taxes is too complicated.
My church will offer free tax preparation for those who are unable to do a basic return. We do this to help people file their taxes electronically without having to go to the rapid refund places and get ripped off.
We certainly don’t offer tax advice or handle complicated returns. The service is designed to help working class people file their return and get their refunds.
I’ve seen local libraries offer similar services.
I misunderstood - apologies.
In the United States, at least, most people who are incapable of doing their own taxes generally don’t pay that much tax, and the people for whom taxes are non-obvious can well afford the $20-$50 it takes for a paid preparer to do.
There’s VITA, some program for the elderly I can’t remember the name of, and there’s free help for Miltitary dudes.
As long as your taxes are simple there are IRS sponsored dudes to help you with them.
I’m pretty sure the IRS will prepare your taxes.
I’ll look.
mangeorge
I’m pretty sure the IRS will prepare your taxes.
I’ll look.
Well, this is, I think, what I heard about
mangeorge
Like I said, VITA:
"*Free Tax Return Preparation For You by Volunteers
Puzzled by the tax law or which credits and deductions to take? Need assistance with your tax return?
You may want to visit a volunteer site. The IRS Volunteer Income Tax Assistance (VITA) Program or the Tax Counseling for the Elderly (TCE) Program offer free tax help if you qualify.
Trained community volunteers can help you with special credits, such as Earned Income Tax Credit (EITC), Child Tax Credit, and Credit for the Elderly for which you may qualify. In addition to free tax return preparation assistance, most sites also offer free electronic filing (e-filing). Individuals taking advantage of the e-file program will receive their refunds in half the time compared to returns filed on paper – even faster if you have your refund deposited directly into your bank account.
Volunteer Income Tax Assistance Program (VITA)
The VITA Program offers free tax help to low- to moderate-income (generally, $40,000 and below) people who cannot prepare their own tax returns. Certified volunteers sponsored by various organizations receive training to help prepare basic tax returns in communities across the country. VITA sites are generally located at community and neighborhood centers, libraries, schools, shopping malls, and other convenient locations. Most locations also offer free electronic filing. To locate the nearest VITA site, call 1-800-829-1040.
Tax Counseling for the Elderly (TCE)
The Tax Counseling for the Elderly (TCE) Program provides free tax help to people age 60 and older. Trained volunteers from non-profit organizations provide free tax counseling and basic income tax return preparation for senior citizens. Volunteers who provide tax counseling are often retired individuals associated with non-profit organizations that receive grants from the IRS.
As part of the IRS-sponsored TCE Program, AARP offers the Tax-Aide counseling program at more than 7,000 sites nationwide during the filing season. Trained and certified AARP Tax-Aide volunteer counselors help people of low-to-middle income with special attention to those age 60 and older.
For more information on TCE call 1-800-829-1040. To locate the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit AARP’s Internet site.
Military personnel and their families get free tax help!
The military also has a strong Volunteer Income Tax Assistance (VITA) Program.*"
Here in Australia it costs about $120 to have someone (an accountant) do your taxes for you, and there are places (community groups) that will prepare them free of charge for the disadvantaged etc. The cost of having someone do your taxes for you is also a tax-deductible expense, FWIW.
Just wanted to second what DrDeth said. I served as a volunteer for VITA last year and I will be a site supervisor this tax season. It is available free of charge to anyone whose AGI is less than the upper limit for the EITC, which is $39,783 for 2007. That’s the EITC limit for married filing jointly, but if an individual earns less than that but does not qualify for EITC, they can still use our services. We also help with state taxes and the Property Tax Credit in Missouri for those who qualify.
Individuals can also go to any IRS office and request assistance with filing which is available for free except for the amount of time you may have to wait. I have done that a couple times myself when moving between states. Having to file at least three returns in one year is never fun.
If clients do not qualify for VITA, we usually refer them to the local office in St Louis.
We cannot do any business returns, including Schedule C, though.
Community Volunteer Income Tax Program CVITP appears to be the Canadian equivalent. There is a link on the site to see if one is eligible.