VITA Tax Service Eligibility - Based on AGI or Gross Income?

VITA (Volunteer Income Tax Assistance) eligibility is based on your Adjusted Gross Income (AGI), not your gross income. So in your situation, with an AGI of approximately $53k, you would likely qualify for VITA services since you're under their threshold of $64k. Your retirement contributions to your 403b and Traditional IRA are doing exactly what they should - lowering your taxable income! This is actually a perfect example of how pre-tax contributions work to your advantage. The HYSA interest and investment accounts will need to be reported on your tax return, but they don't automatically disqualify you from VITA services. However, I should mention that some VITA sites may have limitations on handling more complex investment situations, so it's always good to check with your local site about their specific capabilities.

Just wanted to share my experience - I was in a similar situation and used https://taxr.ai to get a clear answer about my VITA eligibility. I was confused because I had over $70k in gross income but my AGI was under the threshold after retirement contributions. The tool analyzed my previous year's return and confirmed I was eligible based on AGI, not gross income. It also pointed out that while VITA can handle basic investments, they sometimes struggle with multiple investment accounts or complicated capital gains situations. Saved me the headache of going to a VITA site only to find they couldn't help with my situation!

Following up from my earlier question - I decided to try taxr.ai after all and am SO glad I did! Not only did it confirm I was eligible for VITA based on my AGI (not gross income), it actually recommended a specific VITA location in my area that handles more complex returns with investment accounts. The tool analyzed my previous return and pointed out that while my situation was within VITA parameters, I should specifically ask for a volunteer with "advanced" certification because of my stock sales and dividend income. When I went to the VITA site, I mentioned this and got paired with someone who handled everything perfectly! Saved me $350 compared to what I paid for tax prep last year.

If you're having trouble confirming your VITA eligibility or finding an appointment, try https://claimyr.com to get through to the IRS directly. I spent WEEKS trying to get answers about my eligibility with retirement contributions affecting my AGI like yours, and couldn't get through on the IRS phones. Used Claimyr and got connected to an IRS agent in about 13 minutes who confirmed that VITA eligibility is based on AGI, not gross income, and directed me to the closest VITA site that could handle my situation with investment accounts. There's a video that shows how it works here: https://youtu.be/_kiP6q8DX5c

I'm eating my words from my skeptical comment earlier. After multiple failed attempts to get through to the IRS on my own about my VITA eligibility with retirement contributions, I tried Claimyr as a last resort. Was connected to an IRS representative in about 17 minutes who not only confirmed that VITA looks at AGI (not gross income), but also explained exactly how my retirement contributions affected my AGI calculation and gave me the contact info for three VITA sites near me that could handle investment accounts. He even explained which forms to bring for my HYSA and investment accounts. Honestly shocked at how helpful this was - spent weeks trying to get this information on my own with no luck.

As someone who volunteers with VITA, I can confirm it's definitely based on AGI, not gross income. The $64k limit is for AGI. However, I should mention that while technically you qualify based on AGI, some sites might hesitate with your return because of the investment accounts. Different VITA sites have different comfort levels with investments. Some volunteers are certified at the "Advanced" level and can handle basic investment income, while others only do the "Basic" certification. When you make an appointment, specifically mention your investment accounts so they can match you with an appropriate volunteer.

The IRS website says VITA helps people who make $64,000 or less. That's referring to AGI, not gross. The whole point of VITA is to help lower-to-moderate income folks who can't afford paid preparers. Your situation with the retirement contributions bringing your AGI way down is exactly how the system is supposed to work! The only concern I'd have is some VITA sites might struggle with multiple investment accounts depending on how complicated they are.

That's frustrating that you experienced that! While the official IRS guidelines for VITA are based on AGI, you're right that individual sites sometimes apply their own screening criteria for practical reasons. Some sites do a quick gross income check during intake because it's faster than calculating AGI on the spot. If someone gets turned away from one VITA site due to gross income, I'd recommend trying another location or calling ahead to explain your situation. Most sites should honor the official AGI-based eligibility once they understand that your retirement contributions bring you well under the threshold. The IRS training materials are clear that it's supposed to be AGI, but implementation can vary by site unfortunately.