TAXPRO SERVICES CORPORATION

FEDERAL TAX UPDATES

October 3, 2008:  PRESIDENT SIGNS BAILOUT BILL

Immediately after passage by the House President Bush signed into law the Emergency Economic Stabilization Act of 2008.

This Act provides the annual AMT fix and extends through 2009 various popular tax breaks that expired on December 31, 2007, including -

* The option to deduct state and local sales tax instead of state and local income tax.

* The above-the-line “adjustment to income” for qualified tuition and fees.

* The above-the-line “adjustment to Income” for up to $250 in educator expenses.

* The additional Standard Deduction of $500 for single and $1,000 for joint filers for real estate taxes paid.

* The ability to make tax-free transfers directly from an IRA to a qualified charity.

More details on the Act will be forthcoming.

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          July 31, 2008:  PRESIDENT SIGNS HOUSING BILL

 

On Wednesday President Bush signed into law the Housing and Economic Recovery Act of 2008 (HERA).

For more details check out my THE WANDERING TAX PRO post "THE HOUSING BILL AND THE 1040".

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June 24, 2008:  STANDARD MILEAGE ALLOWANCE RATES INCREASED

 

According to IR-2008-82:
 
"The Internal Revenue Service today announced an increase in the optional standard mileage rates for the final six months of 2008.  Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
 
The rate will increase to 58.5 cents a mile for all business miles driven from July 1, 2008, through December 31, 2008.  This is an increase of eight (8) cents from the 50.5 cent rate in effect for the first six months of 2008, as set forth in Rev. Proc 2007-70.
 
In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2008.  The IRS normally updates the mileage rates once a year in the fall for the next calendar year.
 
The new six-month rate for computing deductible medical or moving expenses will also increase by eight (8) cents to 27 cents a mile, up from 19 cents for the first six months of 2008.  The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile."
 
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February 14, 2008:  IMPORTANT NOTICE REGARDING THE FEDERAL REBATE
 
IRS Fact Sheet FS-2008-16 provides the following instructions:
 
"Individuals who might not otherwise be required to file a 2007 tax return will need to file a return this year to receive the stimulus payment.  The return must show at least $3,000 in qualifying income.
 
Low-income workers who had at least $3,000 in earned income in 2007 but do not otherwise earn enough to be required to file a federal tax return need to file a return in order to get the stimulus payment.  Likewise, Social Security recipients, veterans and retired railroad workers who might not otherwise need to file a tax return must do so to receive the economic stimulus payment."
 
More information on the "economic stimulus payment" (i.e. the federal rebate checks) to come.
 

NEW JERSEY STATE TAX UPDATES

SEPTEMBER 16, 2008:  THE CHECK IS IN THE MAIL !- PART II

State Treasurer David Rousseau has announced that eligible non-senior, non-disabled homeowners (under age 65 and not disabled as of December 31, 2007) who filed an application for the NJ Homestead Rebate by August 15 can expect to receive their 2007 rebate checks in a mailing that went out yesterday (Sept 15).

Those who requested direct deposit will have their rebates deposited directly into their bank accounts. Applicants with incomes of $150,000 or less will receive a percentage of the first $10,000 of property taxes paid in 2006. The percentage of property taxes is dependent on income.

Homeowners with incomes of $100,000 or less will receive 20 percent of the first $10,000 of property taxes paid in 2006; those whose incomes are between $100,001 and $150,000 will receive 10 percent of the first $10,000 of property taxes paid in 2006. Those with income over $150,000 are not eligible for the rebate this year.

The Treasurer also noted that applications for the Homestead Rebates are still being accepted.

“Homeowners and tenants who still have not applied for the rebate have until October 31, 2008, to file their applications.  The clock is winding down, so anyone who has not yet filed should do so quickly,” he said.

Applicants who have already filed can check the status of their rebate check by calling 1-877-658-2972, or online at -www.state.nj.us/treasury/taxation/homestead/hrintro.htm.

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          AUGUST 1, 2008:  APPLICATION DEADLINE EXTENDED AGAIN 

The deadline for filing the NJ Homestead Rebate and the Property Tax Reimbursement (aka Senior Freeze – Forms PTR-1 and PTR-2) applications has been extended again from August 15 to October 31, 2008.

For more information check out my THE WANDERING TAX PRO post "WHAT DID I TELL YOU!"

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JULY 15, 2008: THE CHECK IS IN THE MAIL!

The State of New Jersey has begun to mail out the Property Tax Reimbursement (aka Senior Freeze) checks to senior and disabled homeowners who filed their PTR-1 or PTR-2 form by the original June 2nd deadline.

If you have not yet submitted your PTR-1 or PTR-2 application there is still time.  The deadline was extended to August 15th.  Based on past years the deadline will probably be extended again until October.

For more information go to www.state.nj.us/treasury/taxation/propfrez.htm.

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 JULY 3, 2008:  THE APPLICATIONS ARE IN THE MAIL!

 
The New Jersey Department of the Treasury has announced that the 2007 Homestead Property Tax Rebate applications will be mailed out to “normal” (non-senior and non-disabled) homeowners over the next two weeks.

Residents in Morris and Ocean counties should receive their applications today. The expected delivery date for the rest of NJ, based on county of residence, is –

July 7 – Atlantic, Essex, Monmouth and Sussex counties

July 10 – Camden, Hudson, Hunterdon, Salem and Somerset counties

July 12 – Gloucester, Mercer, Middlesex and Passaic counties

July 16 – Bergen, Burlington, Cumberland, and Warren counties

July 18 – Cape May and Union counties.

The rebate can be applied for either online or via telephone. The filing deadline, which will probably be extended, is currently August 15, 2008.

Rebates will be issued to qualified homeowners with 2007 NJ Gross Income (as per NJ-1040) of $150,000 or less. Those with income of $100,000 less will receive 20% of their property taxes up to a maximum of $2,000. Those with income between $100,001 and $150,000 will receive 10% up to a maximum of $1,000.

Checks for senior and disabled homeowners who submitted their application by the original June 2nd deadline will be mailed out on or about July 31st.

According to the NJ Division of Taxation website – “If you have not received your application by July 23, call the Homestead Rebate Hotline at 1-888-238-1233 for assistance”.
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MAY 27, 2008:  DEADLINE FOR APPLICATIONS FOR PROPERTY TAX RELIEF FOR SENIORS EXTENDED
 
As expected, the State of NJ has announced that the deadline for filing the 2007 "Senior Freeze" (Property Tax Reimburesment) application (Form PTR-1 or PTR-2) and the deadline for senior and disabled homeowners to file the NJ Homestead Rebate application has been extended until August 15, 2008.  The original deadline for both was June 2nd.
 

PRACTICES AND PROCEDURES UPDATES

READ MY LIPS - NO NEW CLIENTS!!!
 
I will absolutely, positively not accept any new 1040 clients!  Period!
 
Not your brother-in-law, your girlfriend or your neighbor!
 
Despite sincere promises that, “It’s a simple return.” - it never is!
 
So please - don’t ask me!
 
Of course, this does not include preparing the returns of your dependent children.
 
Actually,  I should be “thinning the herd”!