2011 New Jersey Volunteer Tax Preparation NJ Division of Taxation Linda Hickey Jim Gordon

2011 NJ Volunteer Tax Preparation  State Program Update  NJ Tax Law Changes  Differences: Fed/NJ TaxWise Adjustments  Property Tax Relief Programs New: Homestead Benefit Property Tax Reimbursement Restrictions

State Program Update  New for  Training & Site Materials  Minimum Class Size Combining Groups “Come to Us” Training at RICs  Future Plans

Property Tax Relief Programs

Homestead Property Tax Benefit  Direct Credit Available to Homeowners  Owned & Occupied a property on Oct 1 st Subject to Property Taxes  FY 2012 Budgetary Restrictions: $150,000 or less if Senior/Disabled $75,000 or less  Tenants: No Rebate Provided

Homestead Property Tax Benefit  Paid as Quarterly Property Tax Credit First Quarter 2012  Average Senior/Disabled Benefit $475

Credit Exceptions…  Co-Ops  Continuing Care Retirement Facilities  Change of Address Moved after 10/1

Property Tax Reimbursement  FY12 Budget Changes Keeping Last Year’s Guidelines 2009 Income  $70,000 or less (NOT $80,000) Reimbursement Amounts  Arithmetically Correct

Property Tax Reimbursement  Gross Income Verification: Gross Social Security Benefits Tax-Exempt Interest Total Pension/IRA Income  Multi owner / Multi unit  Overstated Property Tax Amounts

Property Tax Credit  Form NJ-1040-H  Not a Homestead Benefit  Age 65+ or Blind/Disabled  Not filing an NJ-1040

NJ Gross Income Tax

2010 Conversions to Roth  NJ Following IRS Deferred until 2011/2012  NJ/Fed reporting must be same Use same accounting method

2011 Earned Income Tax Credit  Eligibility Still matching Federal guidelines  Beginning TY10 NJ pays 20% of Fed EIC amount  Prevention of Fraud Additional Review Notices Documentation May Be Required

We follow the Feds ? ? ? Federal – State Adjustments

NJ Income Tax Highlights  Wage Reporting Project Form W-2, Box 16  Pension Income Project 1099 Matching  Gambling Winnings Lottery Winnings  Property Tax Deduction/Credit

Scheduling NJ Trainers Reserve Training Dates in Writing:   By Mail: NJ Division of Taxation Attn Jim Gordon PO Box 281 Trenton, NJ

Scheduling NJ Trainers  Request should include: Date(s), Time and Location # of Volunteers # of Sites represented