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Help for the Season: Tax Season

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By Mason Crane-Bolton

Oh boy, it’s tax time! | photo by Mathieu Turle via unsplash.com

 

As April rolls around we prepare for one of the few certainties in life: Taxes.

 

If you’ve already filed your annual income taxes, congratulations! If filing your taxes is still on your “to-do” list, we have some suggested resources to assist you in preparing and filing your taxes. (Please note that we’re not certified or trained tax professionals; if you have questions about your taxes or finances it’s always best to consult an expert.)

 

Whether or not you’re an older adult, New Jersey has many resources available to you for tax preparation assistance. To see if your town offers local tax preparation services, call your town’s municipal center, public library (if one is available in your town), or your county Office on Aging (if you don’t know the phone number for your county’s office, you can call the toll-free number 1-877-222-3737 and you will be directed to your local office). For those who prefer to file their taxes on paper (as opposed to digitally), tax forms are also often available at municipal buildings and libraries. If you prefer, you can also download and print tax forms at home through the first link below.

 

…Did you know that there are FREE tax preparation services available to you? If you’re a taxpayer and over age 60, you’re eligible for (the unfortunately named) Tax Counseling for the Elderly (TCE). If you’re not age 60 or older, but are low- to moderate-income, have a disability, or are non-English speaking, you can get tax preparation assistance though Volunteer Income Tax Assistance (VITA). You can follow the link below to learn a little more about these services and how to find one near you.

Free Tax Preparation Services for Taxpayers https://www.state.nj.us/treasury/taxation/vita_tce/freeservices.shtml

Free Tax Return Preparation for Qualifying Taxpayers

https://www.irs.gov/individuals/free-tax-return-preparation-for-you-by-volunteers

 

…As you might know, there have been several changes in the past few years which have affected your annual income taxes. Depending on your individual situation, you may have been greatly affected or not at all; although there is no “one-size-fits-all” answer, the link below will provide you with some information regarding changes to your NJ state income tax filings.

NJ Income Tax – Important Changes for 2018

https://www.state.nj.us/treasury/taxation/new2018.shtml

 

…If you have some general questions about your taxes or filing, the Internal Revenue Service (IRS) has an FAQ section specifically for older adults and retirees. In addition, the IRS also has a guide of tips for older adults and retirees in preparing and filing their federal taxes. These may not answer more complex or idiosyncratic questions but can be a good place to start for general questions and help.

IRS “Seniors & Retirees”

https://www.irs.gov/individuals/seniors-retirees

Frequently Asked Questions for Seniors

https://www.irs.gov/individuals/seniors-retirees/frequently-asked-questions-for-seniors

Tips for Seniors in Preparing their Taxes

https://www.irs.gov/individuals/seniors-retirees/tips-for-seniors-in-preparing-their-taxes

 

…If you still need help with your federal taxes, you can find ways to contact the IRS online and via phone through the link below, as well as helpful information, such as contacting the IRS on behalf of someone else and what information and identification you should have ready. You can also call the NJ Division of Taxation through the second link below.

IRS “Let Us Help You”

https://www.irs.gov/help/telephone-assistance

NJ “Important Phone Numbers”

https://www.state.nj.us/treasury/taxation/phonenos.shtml

 

…And, of course, you always need to be careful about tax collection scams. Just like we warned in our series on technology and scams, tax time is commonly used by scammers who claim to work with the IRS or other agencies. For more information on this and other tax collection scams you should watch out form, follow this link.

Watch Out for Tax Collection Scams

https://www.state.nj.us/treasury/taxation/scamalert.shtml

 

…If you need to apply for property tax reimbursement, otherwise known as “Senior Freeze,” or learn more about the program and eligibility requirements, you can do so here through the link below:

2018 Senior Freeze (Property Tax Reimbursement)

https://www.state.nj.us/treasury/taxation/ptr/index.shtml

 

Finally…If you’ve already applied for property tax reimbursement, otherwise known as “Senior Freeze,” you can check on the status of your application at this webpage.

Check the status of your New Jersey Senior Freeze (Property Tax Reimbursement)

https://www20.state.nj.us/TYTR_PTR_INQ/jsp/PTRLogin.jsp

 

 

Tax season is at its height and the deadline to file your taxes on April 15th, 2019, is rapidly approaching. Don’t be late on your taxes!—Use the resources above to make sure you file your taxes correctly and on time. If you have questions about your taxes make sure to consult a tax expert or call the IRS or NJ Division of Taxation to seek help with your taxes and filing.

Mason Crane-Bolton is Communications Manager for the New Jersey Foundation for Aging. His writing has appeared in Epiphany, UU World, To Wake/To Rise, and others. 

Income Taxes and Your Social Security Benefits

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Income Taxes and Your Social Security Benefits

David Vinokurov, District Manager, Trenton, NJ, Social Security Administration

With tax season upon us, many of you have asked about Income Taxes And Your Social Security Benefits. Some people have to pay federal income taxes on their Social Security benefits. This usually happens only if you have other substantial income (such as wages, self-employment, interest, dividends and other taxable income that must be reported on your tax return) in addition to your benefits.

Note: No one pays federal income tax on more than 85 percent of his or her Social Security benefits based on Internal Revenue Service (IRS) rules. If you:

  • file a federal tax return as an “individual” and your combined income* is
  • between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your benefits.
  • more than $34,000, up to 85 percent of your benefits may be taxable.
  • file a joint return, and you and your spouse have a combined income* that is
  • between $32,000 and $44,000, you may have to pay income tax on up to 50 percent of your benefits
  • more than $44,000, up to 85 percent of your benefits may be taxable.
  • are married and file a separate tax return, you probably will pay taxes on your benefits.

 

How can I get a form SSA-1099/1042S, Social Security Benefit Statement?

An SSA-1099 is a tax form we mail each year in January to people who receive Social Security benefits. It shows the total amount of benefits you received from Social Security in the previous year so you know how much Social Security income to report to IRS on your tax return.

If you are a noncitizen who lives outside of the United States and you received or repaid Social Security benefits last year, we will send you form SSA-1042S instead.

Note: The forms SSA-1099 and SSA-1042S are not available for people who receive Supplemental Security Income (SSI).

If you currently live in the United States and you need a replacement form SSA-1099 or SSA-1042S, we have a new way for you to get an instant replacement quickly and easily beginning February 1st by:

Withholding Income Tax From Your Social Security Benefits

 

You can ask us to withhold federal taxes from your Social Security when you apply for benefits.

If you are already receiving benefits or if you want to change or stop your withholding, you’ll need a form W-4V from the Internal Revenue Service (IRS).

You can download the form, or call the IRS toll-free number 1-800-829-3676 and ask for Form W-4V, Voluntary Withholding Request. (If you are deaf or hard of hearing, call the IRS TTY number, 1-800-829-4059.)

When you complete the form, you will need to select the percentage of your monthly benefit amount you want withheld. You can have 7%, 10%, 15% or 25% of your monthly benefit withheld for taxes.

Note: Only these percentages can be withheld. Flat dollar amounts are not accepted.

 

Sign the form and return it to your local Social Security office by mail or in person.

If you need more information

If you need more information about tax withholding, read IRS Publication 554, Tax Guide for Seniors, and Publication 915, Social Security and Equivalent Railroad Retirement Benefits.

If you have questions about your tax liability or want to request a Form W-4V, you can also call the IRS at 1-800-829-3676 (TTY 1-800-829-4059).

 

Robo-Call Scams

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Robo-Call Scams

Here at NJFA, both Grace and I (Melissa) have received calls on our cell phones claiming to be from “Cardholder Services”. The recorded voice does not specify the credit card company but urges you to contact them about your account.

We’ve also heard recently from others who have received similar calls, as well as calls from people posing as the IRS. The most recent call I received even came from a local phone number and not a 1-800 number. Apparently there is technology that allows the scammer to change how the # they are calling from appears on your caller ID, so it may look legitimate.

I checked the Better Business Bureau (BBB) website and found that the call I got is a well known scam. The voice on the recording identified herself as “Rachel from cardholder services”. The article on the BBB’s website was from 2014 and indicated that this scam had already been going on for years.

The concept of this scam is no different from the others, the caller wants you to either pay for a “service”, or provide personal information (like account numbers or Social Security Numbers). You should not do either. If the caller claims to be from your bank or credit card company, hang up, look up the correct contact information for your bank or credit card company and call that # to verify any account concerns.

It is also important to remember that the IRS, Social Security, and most government agencies are not going to call you. The IRS specifically will always send you a letter first about any money owed. The current IRS scam involves a caller identifying themselves as an IRS employee and demanding immediate payment via a wire transfer or pre-paid debit card. If the victim refuses to cooperate, they are then threatened with arrest, deportation or suspension of a business or driver’s license. In many cases, the caller becomes hostile and insulting.

With any scam, the request for a pre-paid debit card should be a red flag. This is the scammers preferred way of getting your money. The IRS, and most likely any legitimate entity will not demand payment via a specific method, such as pre-paid debt cards or wire transfers.

You should report all incidents to your local authorities, in addition you may find these helpful as well:

Internal Revenue Service (IRS) phishing@irs.gov or 1-800-366-4484.

Better Business Bureau at http://www.bbb.org

Federal Trade Commission https://www.ftccomplaintassistant.gov/#crnt&panel1-1

NJ Division of Consumer Affairs 1-800-242-5846 or www.njconsumeraffairs.gov

It’s Tax Time- How to Get Volunteer Tax Help

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Volunteer Tax Help

Yes, it is time to think about filing your 2011 tax returns. It’s a job that is never a joy, but could be less of a hassle, if you try using a terrific free service Рthe Volunteer Income Tax Assistance program (VITA). 

 For over 30 years, the VITA force of 2,000+ volunteers has helped more than 2 million households file basic tax forms.  This program offers free tax help to people who cannot afford professional assistance (generally those with incomes under 49,000). Volunteers help prepare basic tax returns in community and neighborhood centers, libraries, schools, and other community locations.

A recent focus of the program is to encourage taxpayers to file their returns, federal and State, electronically. Each year the number of taxpayers that take advantage of this method continues to grow.

 According to the IRS website the following are the items you should bring to have your tax return prepared:

  • Proof of identification
  • Social Security Cards for you,¬†your spouse and dependents and/or a Social Security Number verification letter issued by the Social Security Administration
  • Birth dates for¬†you, your spouse and¬†dependents on the tax return
  • Current year‚Äôs tax package if¬†you received one
  • Wage and earning statement(s) Form W-2, W-2G, 1099-R, from all employers
  • Interest and dividend statements from banks (Forms 1099)
  • A copy of last year‚Äôs Federal and State returns (if available)
  • Bank Routing Numbers and Account Numbers for Direct Deposit
  • Total¬†paid for¬†day¬†care provider and the day care¬†provider’s¬†tax identifying number¬†(the provider’s Social Security Number or the provider’s business Employer Identification Number)

To file taxes electronically on a married filing joint tax return, both spouses must be present to sign the required forms.

To locate the nearest VITA site, call 1-800-829-1040 or contact your local Office on Aging, you can find the # for your County office by visiting www.njfoundationforaging.org/services.html or call 1-877-222-3737.