As the new year rolls around, it brings income tax season with it. And local residents should start preparing to file their income taxes, experts say.

“You never want to go into a tax place with a garbage bag full of receipts,” said Ryan Braber, coordinator of the Barren River Asset Building Coalition. “Start getting your receipts together and start totaling your deductions.”

Braber’s organization offers free income tax services for moderate- to low-income people across the region. Taxpayers who make an annual income of $49,000 or less qualify for the service. The organization has offered such services for four years – last year nearly 1,000 people signed up, getting more than $1 million in total refunds.

“I figure given the economy and our expansion, we are definitely anticipating a record number of taxpayers taking advantage of our services (this year),” Braber said.

The organization is operating 10 tax service sites in Warren and seven surrounding counties. The Bowling Green sites are at PBI Bank of Bowling Green on Campbell Lane and the Housing Authority of Bowling Green on Double Springs Road.

The service is funded through Internal Revenue Service and bank grants, Braber said.

Along with getting records in order, people should make sure they bring their Social Security cards, their W-2 or 1099 forms and all information concerning their income for the year and possible deductions, including a copy of last year’s tax return and checking or savings account information.

Braber also helps inform people about additional tax benefits they can receive, such as the Earned Income Tax Credit – a credit for low-income people that reduces owed taxes and gives more refunds to some people. It’s a benefit most people are unaware of. About 25 percent of qualified taxpayers do not apply for it, Braber said.

Some low-income families also can open Individual Development Accounts – a savings account in which the government matches every dollar deposited up to $2,000.

“And it’s all tax-free money,” Braber said.

The money must be used toward specific purposes, such as starting a small business, buying a first home or financing education.

Many people question whether they can deduct certain expenses from the income taxes. In general, expenses, such as medical payments and money spent for a person’s job, can be deducted. Home mortgage interest is also deductible, and any real estate taxes paid are automatically deducted from tax filings, Braber said.

“It can be difficult, especially if you’re not trained,” Braber said, “but all of our volunteers have received training on that subject, and they have resources at their disposal.”

Small-business owners also are preparing to file taxes. They should begin gathering receipts and making sure their accounts payable are correct, said Chris Bixler, assistant director of the Small Business Development Center at Western Kentucky University.

“Record keeping is of the utmost,” she said, “and receipts, good filing and good bookkeeping is most important.”

The center will hold a workshop, during which experts will discuss taxes with small-business owners. The workshop will be at 6 p.m. Jan. 14 at the Carroll Knicely Conference Center. A $10 fee is required, and participants can register at www.wkusmallbiz.com or by calling 467-7154.

To sign up for BRABC’s tax services, contact the Housing Authority of Bowling Green at 843-6071 or PBI Bank at 746-9272. The PBI site opens Jan. 15 and the Housing Authority site opens Jan. 17.

People with tax questions can call the organization at (800) 928-1183 or visit its Web site at www.brabc.com.