Jan. 9, 2006

COLLEGE STATION – Believe it or not, Dr. Joyce Cavanagh of College Station looks forward to tax season every year.

A family economics specialist for Texas Cooperative Extension, she is one of about 25 volunteers in the Brazos Valley who help AARP prepare income tax returns for low-income and elderly residents.

Nationwide, she said, about 32,000 volunteers have been certified by the Internal Revenue Service as tax preparers for AARP's Tax-Aide service.

That's why most Saturdays during tax season, Cavanagh is helping others complete a normally dreaded task – filing tax returns.

"I've been doing volunteer assistance for seven years," Cavanagh said. "This is the third year I've been with the Tax-Aide program." Before that, she was a volunteer for the IRS's Volunteer Income Tax Assistance program.

But IRS certification as a volunteer tax preparer isn't her only source of financial expertise. Cavanagh earned a bachelor of science degree in home economics education from the State University of New York at Plattsburgh, and a master's degree in consumer and family economics from the University of Missouri-Columbia.

Although she originally hoped to teach home economics, a college internship with Extension changed her mind and lead her to a doctorate degree in consumer and family economics, also from the University of Missouri-Columbia.

"I've always been interested in personal finances-related issues that families face," she said.

Her volunteer work just naturally followed her professional experience.

"I've always done my own taxes, I like numbers, I like working with people, and I'm interested in taxes as how they affect low- and middle-income (families) and the elderly. It's (also) a way to keep in touch with the audience I work with in Extension," she said.

Volunteering has also broadened her horizons in other ways, Cavanagh said.

"It's a good way to meet people, to learn about the community you live in, " she said. Tax season is usually Feb. 1 through April 15, but, Cavanagh said, sometimes that changes, depending on the calendar. For example, this year April 15 falls on a Saturday, so filing deadline will be the following Monday, April 17.

But even if grumbling about tax season is a national pastime, Cavanagh sees this time of year from a different point of view.

"I enjoy it," she said. "It's really satisfying when people come in and have a problem or don't understand something about their taxes or finances and start asking questions – when I can give them answers and help out."

She offered this advice for any taxpayer who is not especially looking forward to the coming tax season: Each individual should make sure to have all the required forms and paperwork before starting the tax filing process.

According to Cavanagh and AARP, these forms include:

- W-2 forms from each employer who paid the taxpayer a salary;

- 1099 forms for interesting-earning accounts and/or pensions;

- This year's income tax forms and preparation booklet, if available;

- A copy of last year's tax return, if available;

- Deposit statements or other forms that document contributions made to an Individual Retirement Account; and

- Social Security cards for each taxpayer and dependent.

Other required forms – such as those for unemployment compensation or dependent care provider information, or proof needed for itemizing deductions – will be indicated by each taxpayer's situation, Cavanagh said.

"You need to bring anything you've got that shows income for the year, whether it's for your job, interest (on an account) or sale of property," Cavanagh said.

But above all, she advised, don't file too soon, even if anticipating a much-needed refund. Filing too soon and without the necessary paperwork means an amended tax return will have to be processed later and the refund will be delayed even longer.

Forms from employers or financial institutions should be received by Jan. 31, she said Waiting until everything arrives will make the process go smoother.

For an even faster refund, "if you have a bank account – checking or savings – see about getting your refund by direct deposit," Cavanagh said. "But don't do a refund anticipation loan. (The fee charged) is money that could have been pocketed if you waited another two weeks, at most."

For information about Tax-Aide and to find tax preparation locations, visit the Web at http://www.aarp.org/money/taxaide/ or call (888) 227-7669.

For more information on Extension's family economic program, visit http://fcs.tamu.edu and click on the link to Money.