"St. Cloud Times" article on AAM's free tax prep

"Organization offers free tax help to low-income, jobless individuals"

By Britt Johnsen

bljohnsen@stcloudtimes.com
January 28, 2010

A local nonprofit organization will begin work today helping low-income people file taxes for free.

AccountAbility Minnesota, which organizes free tax-preparation sites statewide, expects to double its St. Cloud staff from 40 volunteers last year to 80 this year as it multiplies its efforts to help people hit by a historic recession, said Rod Harren, a program coordinator.

One site at St. Cloud Technical and Community College opens today; one opens Saturday and the third opens next week.

The sites are expected to draw more people — and more people looking for a faster refund.

The recession has left many workers in the area jobless; unemployment in Stearns and Benton counties was 7.4 percent in December, according to the Minnesota Department of Employment and Economic Development.

"All taxpayers want their refund as soon as possible," Harren said.

In response, the nonprofit has begun offering a low-cost loan program. It's also offering its services to unemployed people and reaching out to African and Latino communities in the St. Cloud area.

New loan program
For the first time, AccountAbility Minnesota began a relationship with St. Cloud Federal Credit Union to offer a loans to anyone who wants their refund faster. The idea behind this program is to steer people away from so-called "refund anticipation loans" or "instant refunds," Harren said.

The loan program makes it so that people get refunds in up to three business days, he said. The typical federal refund takes five to 10 days to get to the hands of a taxpayer, Harren said.

It's also offered to anyone of any credit profile; in other words, if you have bad credit, you can still get this loan.

Neil Brenno, financial services specialist at AccountAbility Minnesota, said the fee on the loan will be no more than $25, less than the $70-$148 people typically pay for "instant refunds," he said.

"We're talking pennies on the dollars for people to get loans," Brenno said.

Outreach
Another way the nonprofit is reaching out to more people is by connecting with the African and Latino communities in St. Cloud. Sadiq Dahir is a tax preparation volunteer at AccountAbility Minnesota who is also a Somali interpreter. His new job this year is to reach out to African and Latino populations and let them know about the services available.

Dahir said that's important because language and cultural barriers have prevented many qualified people from using the free tax service.

AccountAbility Minnesota also has expanded its services to the unemployed. It usually just serves low- or moderate-income people and families. But if you're unemployed, you can qualify for the free service.

The Internal Revenue Service is also forgiving the first $2,400 in unemployment checks from last year, Harren said.

Anything over that is considered taxable income, he said.

Before this year, all unemployment income was taxable.

Last year AccountAbility Minnesota helped 1,350 local people get about $2.1 million in refunds back, said David Schlough, a program coordinator.

The nonprofit works with volunteers from all over, including St. Cloud State University, St. Cloud Technical and Community College, College of St. Benedict and St. John's University.

"They will be ready to go," Harren said.

Additional Facts
Some qualify for free tax preparation:

If you are an individual making $30,000 a year or less, or a family making $50,000 per year or less, you qualify for a free tax preparation service.

Here’s where you can go to file your taxes at no charge:

St. Cloud Technical and Community College
1540 Northway Drive,
St. Cloud.
Thursdays, 5-7:30 p.m.
Jan. 28-April 15.

The Salvation Army
400 U.S. Highway 10 S,
St. Cloud.
Wednesdays, 4-7 p.m. and Saturdays, 9 a.m.-noon.
Jan. 30-April 14.

Catholic Charities
157 Roosevelt Road, Suite 100, St. Cloud.
Tuesdays, 8:30 a.m.-3:30 p.m.
Feb. 2-April 13.

No appointments necessary. If you have questions, call United Way 211 program by dialing 211 or calling 1-800-543-7709.

Source: AccountAbility Minnesota