AARP tax volunteers reported 714 returns and decline in homestead-credit filers

Volunteers with the AARP/IRS Tax-Aide program presented a report to the Marshfield Parks committee showing 714 tax returns prepared this season and a decline in the share of clients claiming the state homestead tax credit, which the volunteers said stems from an income-cap threshold that is not indexed for inflation.

"This year, we did 714 taxes," the volunteer presenter, identified in the meeting as Ed, told the committee. He described the program’s volunteer makeup and training: 11 tax counselors who receive IRS-certified training and complete exams and practice submissions before they are qualified to prepare returns.

Ed said the AARP/IRS program has no income caps for assistance, but volunteers are limited in the complexity of tax returns they can handle: they do not prepare returns for businesses carrying inventory or depreciation, nor do they handle certain complex filings such as recent divorces or married-filing-separate cases. The group assists with retirement accounts, brokerage accounts and homestead-credit claims when applicable.

On homestead tax credits specifically, Ed said the program has seen a drop in the proportion of clients claiming the credit: "In 2020... 68 percent of the people that we helped had homestead tax credit. And this past year, it was 23 and a half percent," he said, adding that the state income qualification cap remains at $24,000 and is not indexed to inflation. He described that increase in Social Security and other income sources has pushed some people above the cap.

The committee thanked volunteers and staff and noted the community benefit of the program, which schedules appointments via United Way's 2-1-1 and serves clients at multiple sites. The presentation was informational; no committee action was required.

Ending: Volunteers encouraged residents to use the appointment system and noted the program will continue to operate through multiple weekly sessions at community locations.