(Washington, DC) The DC Office of Tax and Revenue today kicked off its filing season by urging District taxpayers to file their tax returns electronically to ensure accurate and timely receipt of refunds. Taxpayers will also benefit from a number of tax law changes, which include a decrease in the tax rates and the DC Government First-time Homebuyers Credit, free preparation of the District tax return, and extended hours.

"We are streamlining processes to be more responsive to District taxpayer requests for an easier, less cumbersome tax filing process,” said Stephen M. Cordi, deputy chief financial officer for tax and revenue. “We continue to focus on user friendly service and efficiency from the inside, in order to provide taxpayers the information and services they need to meet their tax obligations."

OTR offers two electronic filing methods: the free electronic Taxpayer Service Center (eTSC) and the Federal/State E-file program. With the eTSC, taxpayers can file and pay their taxes online and check the status of their refund. The Federal/State E-file program allows taxpayers to transmit both their DC and federal returns electronically, using an approved commercial software program, either from their home computer or with the assistance of a tax practitioner.

In addition, eligible District taxpayers are strongly encouraged to take advantage of the District's Earned Income Tax Credit (EITC), which can give low-income individuals and families refunds. Taxpayers can claim a DC Earned Income Tax Credit of 35 percent of the federal credit, adding up to an additional $1,588 to the federal refund for some families.

OTR customer service representatives are available to assist taxpayers in preparing their individual income tax returns Monday through Friday, excluding holidays, from 8:30 a.m. until 4:30 p.m. This service can be accessed by visiting the walk-in service center at 941 North Capitol Street, NE, on the first floor, or by calling (202) 727-4TAX (4829). Extended service hours will be available from 8:15 am to 7:00 pm March 31 to April 14; 8:15 am– 8 pm April 15; and 8:15 am to 8 pm every third Thursday.

Taxpayers should also be aware of the following tax law and administrative changes when filing their DC taxes this year:

Tax Law Changes

• Income Tax Rates: The top individual income tax rate (for those earning $40,000 or more a year) has been reduced from 8.7 percent to 8.5 percent. There are also rate reductions in the lower tax brackets. Detailed information on rates for the lower tax brackets can be secured at our Web site at www.taxpayerservicecenter.com.
• D.C. Government Employee First-time Homebuyer Credit: Eligibility for this $2,000 credit has been expanded from just police officers to include all DC government employees, all employees of a DC public charter school, and any person who has accepted an offer to be a DC police officer, firefighter, emergency medical technician, public school teacher, or teacher at a DC public charter school.  This expanded tax credit is limited to those employees who purchased their first homes on or after October 1, 2007 and who have enrolled in the Employer Assisted Housing Program offered by the DC Department of Housing and Community Development.
• Domestic Partner Health Care Benefits:  Since January 1, 2006, the cost of any health-care insurance premium, paid by an employer for a non-employee domestic partner registered with the Vital Records Division of the DC Department of Health, is excluded from the calculation of the employee domestic partner’s District gross income.

Direct Deposit
Taxpayers who elect to file paper returns, can now elect to have their refunds deposited directly into their bank account.