Tax Preparation
For an overview of tax related topics, visit USA.gov and go to there taxes page, or click the button below to go there.
VITA tax preparation sites
Volunteer Income Tax Assistance or “VITA” tax preparation sites are places where you can get your taxes done for FREE by professionals. They are verified by the IRS, so you know you can trust them to do your taxes properly. What’s more, they are completely free of charge, which means more money in your pocket. Additionally, you know you’ll get the full refund you deserve because it’s done by professionals. If you want more information about this program, visit the IRS website page discussing free tax preparation.
You can find your local VITA site with the locator tool on the IRS website. The locator tool is updated during tax season, so don’t panic if it shows there are no VITA sites near you.
If you are in the Jackson area, here are some places that are generally VITA tax sites:
- Hinds County Human Resource Center
- Phone: (601) 923-3930
- Address: 258 Maddox Road, Jackson, MS 39212
- Jackson State University
- Phone: (601) 979-2121
- South Central Community Action Agency
- Phone: (601) 847-5552
- Address: 3891 I55 South Frontage Road, Jackson, MS 39282
VITA sites are sometimes drop-in sites, but some are by appointment only. Make sure to call ahead to get more information or make an appointment. Additionally, make sure you bring all the necessary documents to your appointment.
Other ways to do your taxes for free
The IRS offers free tax preparation online for qualifying individuals through the Get Your Refund program. You are eligible for the Get Your Refund program if you make less than $66,000 dollars a year. Additionally, you can file your taxes online for free with support if you make under $73,000 a year. You can also access these services through the United Way program “My Free Taxes”.
They will also assist you in getting your stimulus checks if you haven’t gotten them yet, and they will make sure you get your full refund.
Documents you will need to file
Make sure you call and check what documents the VITA sites require you to bring along to your appointment. They will also know what to do if you don’t have a document or are having trouble finding your documents. If you want to know what documents you need to start the process of gathering them in advance of tax season, check out this list from the IRS.
Tax Credits
(That you probably qualify for)
Many taxpayers are unaware of all the tax credits they may qualify for. Here are a couple you should be aware of when you file your taxes next.
Earned Income Tax Credit
The Earned Income Tax Credit (EITC) is a fully refundable tax credit which low- and moderate-income working Americans are eligible for. Fully refundable means that if you get a larger tax credit than the amount of taxes you owe, you get the rest refunded to you.
For more information about this tax credit and to check if you qualify, visit the IRS page about the EITC.
Child Tax Credit
The Child Tax Credit (CTC) is a partially refundable tax credit. Many Americans gained familiarity with this tax credit during the pandemic when it was expanded under the American Rescue Plan, but it is still available to tax payers in its original, non-expanded form. Additionally, if you never received the expanded CTC, you can still get it if you file your taxes from previous years.
Tax Information
IRS website
If you have general questions about how to pay your taxes or the federal tax code, the IRS website is the most reliable source of information. From this website, you can access all the above tools, sign into your tax account, make a payment, and view your refund status. You can also check when taxes are due each year to make sure you get them in on time.
State taxes
Much of the information on the IRS website is only about federal taxes – so what about state taxes? You can find information about your state tax code on your state’s Department of Revenue website. Here’s the Mississippi Department of Revenue website:
Filing past due tax returns & non-filer information
If you haven’t filed your taxes in awhile – say a few years, or ever – you can still file them! You can file up to 3 years in the past and still be eligible for those refunds. Here’s the IRS website page about filing past-due tax returns.
If you make less than approximately $12,000 for single filers or about $19,000 for heads of household you may qualify as a non-filer. However, there are benefits to filing your taxes – you are probably eligible for a tax return, especially if you have dependents.
If you are curious about whether you qualify as a non-filer, and what the benefits of filing your taxes are, visit the IRS website page about who should file tax returns.
Banking
This page will walk you through resources for banking & saving money.
Springboard Guide
This guide to opening a bank account covers all the basics plus a little more, download it to get started!
Why Bank at all?
There are lots of good reasons to put your money in a bank. The first reason is that it’s insured, which means it’s protected by the federal government up to $250,000. Aside from that, banking is a great way to foster a relationship with a bank that could potentially loan you money later on for a large purchase like a car or a house.
For more reasons to bank, check out the FDIC document #GetBanked.
Where to Bank
There are a lot of options when it comes to where to put your money, but there are some places that may be more beneficial than others. Though the end decision is completely up to you, this section will discuss banking options that may be more helpful for individuals with low-income, based on the services and account options they provide.
Banking Options to Consider in Jackson MS
Hope Credit Union
Hope Credit Union is a CDFI dedicated to strengthening communities, build assets and improve lives in areas of the Deep South by providing access to high quality financial products and related services. To learn more about their services, click the button below.
Magnolia Federal Credit Union
Magnolia Federal Credit Union is a CDFI full-service financial institution offering financial products and services to its members. They aim to have reduced fees, lower interest rates on loans, and higher returns on savings. They provide financial counseling for free. To learn more, click the button below.
Wherever you decide to bank, make sure you do your research to see what their options are, what services they offer, and if they will work for you. There are tons of banks out there, so choose one that’s right for you!
Questions to ask when comparing accounts:
Saving Money
Saving money is a challenge, if you are looking for helpful tips, here are a couple resources you may find helpful.
America Saves
America Saves has tips and resources for saving. Find these by visiting their website and going to their resource center.
FDIC Savings Resources
The FDIC has a resource page about saving money, to check it out click the button below.
Low Income Relief
Low income relief has all sorts of articles about how to save money and get government benefits. Check it out by clicking the button below.
Credit Building
You may need to build your credit for various reasons, such as taking out a loan or planning for the future. Having good credit sets you up for success, but it can be difficult to do. Here are some resources to help you on your credit journey.
Springboard Guide
Springboard has put together a step-by-step guide to building your credit. This is a great place to start if you are looking for tips to build your credit.
For more information about credit reports and scores, you can visit the consumer financial protection bureau’s website, and go to the credit reports & scores page, or click the button below.
More Credit Resources
Loans
You may need to take out a loan for a variety of things such as attending school, purchasing a car or house, or another big expense. This page will take you over the basics of what a loan is and what information you’ll need when you try to get a loan.
What is a Loan?
A loan is when you borrow money from someone, often a bank, and you agree to pay that money back with interest. For example, when you purchase a home, you take out a mortgage or home loan. Essentially, this means the bank owns the home until you pay off all the money you borrowed from them.
What is Interest?
Institutions that give out loans charge interest when you borrow the money. Essentially, you have to pay a little extra in order to borrow the money. The amount extra as a percentage of the total loan is called the interest rate. Some loans have a high interest rate, which means you will end up paying much more than if your loan has a low interest rate.
Who gives out Loans?
Many types of institutions can give out loans, but the government and banks are two of the most likely loan providers you might work with. If you do take out a loan with someone, make sure the are a legitimate institution.
What is the Repayment Term?
The repayment term is how long the loan term is. For larger loans, like a mortgage, the term is usually longer so that you can make smaller payments over a longer amount of time.
What is your Monthly Payment?
Your monthly payment is the amount you pay towards your loan + interest each month. If it is a large loan, this amount should be the same over the repayment term until your loan is completely paid off.
What will you need to take out a loan?
Generally to take out a loan you will need your personal and financial information, such as your credit score. You may need to improve your credit score in order to qualify for a loan, if that’s the case, check out our credit-building tab on this page.
What is a Predatory Loan?
A predatory loan is generally a loan that has unfair or abusive terms, including high-interest rates, high fees, and terms that strip the borrower of equity. Additionally, the main targets of predatory lending are those with few credit options or who are vulnerable in other ways. Pay-day loans are often predatory since they generally charge a high interest rate.
What does it mean to default on a loan?
If you default on a loan it means you miss payments for a certain amount of time (specified by the loan). Then the loan goes to debt collection, and you make face consequences such as having a car or house taken by the bank. Before this happens, it’s best to reach out to your loan provider and try to work with them to figure out a repayment plan.
More Resources for Understanding Loans
Click one of the buttons below for more resources for understanding loans. Please note that any website that is not a .gov website may be trying to sell you something. We are listing them here for information purposes ONLY, and do not recommend you buy anything from them.
Homeownership
Owning your own home is an important step in wealth building. Instead of money going to pay rent and vanishing, by buying a home you are investing your money in something that you will one day own and be able to pass down or sell. But buying a home can be overwhelming for first-time-homebuyers. Thankfully, there are a lot of resources out there to help you succeed. This page will discuss those resources to help you reach your goal.
Springboard Guide:
Springboard has put together a guide that will walk you through the home buying process from start to finish.
The rest of this page will go a little deeper into the resources listed in the guide so you are prepared for your home buying journey.
Education
The first step to buying a home is learning about the process. Because buying houses is not as straightforward as other things, it’s important to understand how it works so you can be successful. Fortunately, there are many home buying counselors and classes that are approved by HUD (Department of Housing & Urban Development). This means they have been verified and are reliable sources of information – and their services are free!
There are lots of housing counselors that have been HUD verified. On HUD’s website there is a list of HUD verified housing counselors in Mississippi. If you are not in Mississippi – don’t worry! They have lists for all the states.
Local and Online Educational Resources:
Funding & Loans
There are many potential sources of funding to help you purchase a home. Some banks offer special loans to first-time home buyers. Some programs help pay your mortgage. This section will go through the different types of funding and local resources that could help you buy a home.
Keeping your home
Once you have purchased your home, you don’t want to lose it. But stuff happens – if you miss your mortgage payment, it isn’t the end of the world. But if you consistently don’t pay on your mortgage, your house can get foreclosed on. Meaning the bank, or loan provider, can take it away from you.
Here are some resources to help you avoid foreclosure on your home:
- The Mississippi Housing Partnership offers foreclosure mitigation counseling
- For more information, call (601) 969-1895
Financial Education & Information
There are a lot of places to go if you are looking to get more educated about financial topics. This page is a good place to start, but if you want to learn more, here are some resources for you.
Online Financial Education Resources
Local Financial Education Resources
There are frequent opportunities to get more information and education on financial issues. Non-profits and banks will often host workshops and classes, so if you are looking for in-person financial education keep your eyes open! If you live at a property that Springboard serves, talk to your community specialist to be informed about local opportunities. Here are some more local resources that might be helpful.