Karina is One Step Closer to a Home of Her Own

Karina is One Step Closer to a Home of Her Own
A Tax Return Can Mean More Than a Refund

Karina, a single mom to two children, dreams of moving out of her parent’s home in Hendersonville and into her own home. Those dreams have never involved taxes, but this year her tax returns are moving her one step closer to what she really wants.

After using the free tax preparation services at Pisgah Legal Services, Karina learned she would receive more than $10,500 in refunds.

Money Earned, Money Accessed

“I was very shocked,” said Karina. “You can never guess, especially with tax refunds, how it’s going to go.”

Her refund was largely due to Earned Income Tax Credits (EITC) and Child Tax Credits. These tax credits are not extra benefits. Karina worked hard to earn this money, but without the knowledge and understanding of how tax filing works, the credits can be overlooked.

Pisgah Legal Services tax advocates, like Jim Carillon who helped Karina file, have extensive training to help clients access what already belongs to them. This can make a world of difference for individuals and families like Karina.

“I’ll definitely save it,” said Karina. “Maybe to get my own place and move out with my kids. That’s my goal.”

Removing Any Risk

Taxes are confusing, and Karina did not want to make any mistakes that could jeopardize her refund. In the past, she’s always paid someone to file her taxes for her, but a referral led her to Pisgah Legal this year.

Karina was surprised and grateful to discover that the program was free, helping her save even more for her children’s future. What really put her at ease, though, was Jim’s expertise and understanding of the system.

Taking a Step Beyond Simple Filing

Jim didn’t just prepare and file Karina’s taxes for her. As part of every tax preparation at Pisgah Legal, it also goes through an internal quality review process to ensure nothing is missed and then comes the education piece. Staff take the time to walk clients through exactly how the Internal Revenue Service (IRS) and NC Department of Revenue treat each item and how the final numbers are calculated.  

This can be especially helpful for clients who did not get the same type of refund as Karina to better understand why. EITCs make the biggest difference for families with multiple children and moderate income but the amount of the refund will lessen as the family income increases.

There are also complex situations where single parents working two moderate-wage jobs end up owing money because each employer withholds taxes as if that job is the earner’s only income. Families end up disappointed to learn they owe despite working multiple jobs to make ends meet.

“It’s disappointing whenever anyone owes money at the end of the tax year,” said Jim. “However, we advise them on how to avoid this result the following year. There’s no silver bullet, but there are ways to help clients avoid a big negative surprise the next year.” 

Year-Round Support

The support doesn’t end as tax season wraps up. Pisgah Legal helps file taxes year-round for those not required to file based on income, and the Low-Income Taxpayer Clinic offers free help managing federal and state tax controversies, such as collection issues, Earned Income Tax Credit, appeals, and cancellation of debt.

Having someone knowledgeable about the system on your side can make a huge difference, as Karina knows. For working individuals, especially those with children, capturing every dollar they’re entitled to can mean relief, security, or even moving one step closer to a dream.