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Tax changes kick in for '03 By Sean Wolfe Ashland Daily Tidings Tax relief is on the way. But it may take a tax professional to help low-income workers to reap the benefits. That's the message from the Internal Revenue Service this tax season. Recent changes to tax laws are holding out the promise of lower taxes for more low-income taxpayers. But both the IRS and accountants advise that the changes are complicated, and often difficult to navigate. According to acting IRS Commissioner Bob Wenzel, changes in the Earned Income Tax Credit (EITC) law will expand the number of low-income working taxpayers, especially military personnel, who qualify for tax relief. "More hard-working Americans can receive tax relief or even a tax refund because of changes in this credit. We want all those who are eligible, but only those who are eligible, to apply," Wenzel said. Tom Reid, partner at Ashland-based accounting firm Reid, Hanna & Co. LLP, said determining eligibility can be difficult, particularly for those unable to afford tax professionals. "The only problem with the earned income tax credit is that it's ungodly complicated. Given who it's supposed to apply to, it's generally not the people with the biggest amount of money, and most able to do those kinds of calculations," Reid said. "It's not a thing most people can do on their own, which is too bad, because it can have a huge affect on a person's tax liability. Unlike most tax credits, it's a refundable credit, so the people who qualify for it most often wind up paying no taxes or getting money back." IRS figures indicate that 197,339 Oregon taxpayers claimed the EITC for tax year 2001, and received more than $303 million in earned income tax credit - about $1,539 per taxpayer, on average. For the 2002 tax year, both the income limits and the maximum credit have increased slightly, courtesy of automatic cost of living calculations. For married couples, those with two or more qualifying children must have an adjusted gross income of under $33,178, or $34,178 if filing jointly. Couples with one qualifying child must have an adjusted gross income of less than $29,202 if filing separately, or $30,202 if filing jointly. Couples with no children are capped at $11,060, or $12,060 on a joint return. To provide help for those unable to afford professional tax help, the IRS has pledged a bank of volunteers to assist. Many local IRS offices nationwide will be open Saturdays Feb. 8, Feb. 15 and Feb. 22 specifically to help people with EITC claims. In addition, tax assistance sites operated by volunteers will begin opening around the state in February. The IRS is also pointing people to its Web site to find out if they qualify for free tax preparation services and electronic filing. "The IRS and its network of volunteers are ready to help taxpayers complete accurate returns on this complex issue," Wenzel said. The IRS suggests that savvy taxpayers review the IRS Publication 596, which is available on IRS.gov or by calling 1-800-TAX-FORM (1-800-829-3676). Publication 596 contains a worksheet that helps taxpayers determine their eligibility. Also, taxpayers can help determine their eligibility by reviewing the EITC pages on the IRS Web site at www.irs.gov/eitc. LINKS: DAILY TIDINGS: Main | News | Sports | Business | Obituaries | Opinion | Columnists | AP News | Subscribe | Archives | Weather | Classifieds | Contact Us | Privacy REVELS: Main | Calendar | Dining | Movies | T.V. OTHER: Road Cams Copyright 2003 Ashland Daily Tidings 541.482.3456. 1661 Siskiyou Blvd., Ashland, OR 97520. Ottaway Newspapers, Inc. - Advertisers -