Residents Learn Tax Tips at City Financial Forum

Sentinel News Story

City Controller Ron Galperin joined Council President Herb Wesson and Councilman Marqueece Harris-Dawson and financial planners and advisers Saturday, April 1, for a free workshop to provide tax and financial-planning advice to residents in South Los Angeles.

The elected officials joined representatives of the Empowerment Congress Southwest Neighborhood Development Council, the Financial Planning Association, the nonprofit financial coaching service BALANCE, the Children's Collective - Family Source Center, the Watts Labor Community Action Committee - Family Source Center and the Los Angeles Housing & Community Investment Department to offer tax tips in advance of the federal filing deadline, which is April 18 this year.

More than 20 people attended the forum at the Mark Ridley-Thomas Constituent Service Center, 8475 S. Vermont Ave.

The elected officials, financial planners and tax counselors advised attendees to save receipts for child-care services for tax purposes, to check whether they qualify for federal and state Earned Income Tax Credits, to lock away vital documents in a fireproof safe and make a digital backup, and to direct a portion of their income to 401(k) and similar retirement plans that offer tax benefits.

Galperin, who is sponsoring a series of forums citywide to provide practical financial advice to Angelenos, recalled his own childhood accompanying his immigrant parents to a savings-and-loan to set aside a portion of their earnings as savings. He advised attendees to take a similarly forward-thinking approach while making sure they get the tax benefits to which they're entitled, particularly the Earned Income Tax Credit, which is available to low- to moderate-income working individuals and couples, particularly those with children. Beginning with the 2015 tax year, California offers its own Earned Income Tax Credit to supplement the federal credit. The federal credit is as much as $6,269 for households with three or more qualifying children.

"Too much of it is lefton the table," Galperin said.

Percy Bolton, a Certified Financial Planner and member of the Financial Planning Association, said 80 percent of Baby Boomers have less than $10,000 in savings. He urged people to avoid the temptation to spend money needlessly and instead counseled them to sock away money for retirement.

Saturday morning's forum included a number of valuable points for taxpayers, including advice on setting financial goals and writing down their monthly expenses, said Lois Nelson, vice chair of the Empowerment Congress Southwest Neighborhood Development Council and a resident of Vermont Knolls.

"People need to know what resources are available to them," Nelson said. "They need to know that they can live a financially secure life if they put these kinds of points into action."