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Extension Filers: Don't Miss the Oct. 15 Deadline

Posted on October 14, 2015 at 6:20 PM Comments comments (0)

 

If you are one of the 13 million taxpayers who asked for more time to file your federal tax return and still haven’t filed, your extra time is about to expire. Oct. 15 is the last day to file for most people who requested an automatic six-month extension. If you have not yet filed, here are some things that you should know:

 

Try IRS Free File or e-file. You can still e-file your tax return for free through IRS Free File. The program is available only on IRS.gov through Oct. 15. IRS e-file is easy, safe and the most accurate way to file your taxes. The tax software you use to e-file helps you get all the tax benefits that you’re entitled to claim.

 

Use Direct Deposit. If you are due a refund, the fastest way to get it is to combine direct deposit and e-file. Direct deposit has a proven track record; eight in 10 taxpayers who get a refund choose it. The IRS issues more than nine out of 10 refunds in less than 21 days.

 

Use IRS Online Payment Options. If you owe taxes the best way to pay them is with IRS Direct Pay. It’s the simple, quick and free way to pay from your checking or savings account. You also have other online payment options. These include Electronic Funds Withdrawal or payment by debit or credit card. Just click on the “Payments” tab on the IRS.gov home page.

 

Don’t overlook tax benefits. Make sure to check if you qualify for tax breaks that you might miss if you rush to file. This includes the Earned Income Tax Credit and the Saver’s Credit. The American Opportunity Tax Credit and other education tax benefits can help you pay for college.

 

File on time. If you owe taxes, file on time to avoid a late filing penalty. If you owe and can’t pay all of your taxes, pay as much as you can to reduce interest and penalties for late payment. Use the Online Payment Agreement tool to ask for more time to pay. You can also file Form 9465, Installment Agreement Request, with your tax return.

 

More time for the military. Some people have more time to file. This includes members of the military and others serving in a combat zone. If this applies to you, you typically have until at least 180 days after you leave the combat zone to both file returns and pay any taxes due.

 

Try easy-to-use tools on IRS.gov. Use the EITC Assistant to see if you’re eligible for the credit. Use the Interactive Tax Assistant tool to get answers to common tax questions. The IRS Tax Map gives you a single point to get tax law information by subject. It integrates your topic with related tax forms, instructions and publications into one research tool.

 

Each and every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. These are your Taxpayer Bill of Rights. Explore your rights and our obligations to protect them on IRS.gov.

 

Property tax freeze credit

Posted on October 2, 2014 at 12:35 AM Comments comments (0)

The property tax freeze credit is a new two-year tax relief program that reimburses qualifying New York State homeowners for increases in local property taxes on their primary residences.

 

Eligibility requirements for 2014

 

To receive the credit in 2014, homeowners must meet the following eligibility requirements:

 

Receive the STAR property tax exemption.

- The property must be the homeowner's primary residence.

- The total household income must be $500,000 or less.

 

The school district where the homeowner's property is located must comply with the New York State Property Tax Cap. Find out if your school district complied with the tax cap this year on our tax cap compliance page.

How to get the credit

 

In the Fall of 2014, the Tax Department will automatically mail checks to eligible homeowners. Eligible homeowners do not need to do anything to receive the credit. The Tax Department will review eligibility data and calculate the credit.

 

Homeowners who do not receive a check and who believe they are entitled to the credit (or who believe their credit was incorrectly calculated) will be able to contact the Tax Department to have their case reviewed.

 

Credit amounts

 

As a general rule, the freeze credit will fully reimburse eligible homeowners for increases to their property taxes. The freeze credit will be the greater of:

 

the actual increase in the homeowner's tax bill, or

the previous year's tax bill multiplied by an inflation factor (the lesser of 2% or inflation). For 2014, the inflation factor for school districts is 1.46%.

Homeowners whose tax bills go down, stay the same, or increase less than the inflation factor will receive a credit equal to the previous year's tax bill multiplied by the inflation factor.

 

Exceptions

 

There are some exceptions. The credit will not reimburse homeowners for increases that are the result of:

 

improvements to the property that increase its value,

changes in a property's exemption status, or

a jurisdiction-wide reassessment to the extent the increase in the property's assessed value exceeds the average change in assessed value.

 

Co-ops and mobile homes

 

The credit for co-ops and mobile homes that are not separately assessed will be calculated as follows:

 

Co-op owners: the credit will be 60% of the average credit for the jurisdiction.

Mobile home owners: the credit will be 25% of the average credit for the jurisdiction.

 

Buffalo, Rochester, Syracuse and Yonkers

 

Different rules apply in Buffalo, Rochester, Syracuse and Yonkers. These cities impose a single levy that includes both city and school district taxes. For purpose of the freeze credit, 67% of the tax is attributable to school tax and 33% attributable to city tax. In 2014, the credit will be equal to that part of the property tax increase attributable to school tax (67%).

 

New York City

 

New York City is not subject to the tax cap. For this reason, city residents are not eligible for this credit. New York City homeowners and renters may, however, be eligible for the New York City Circuit Breaker Tax Credit.

Family tax relief credit

Posted on October 2, 2014 at 12:30 AM Comments comments (0)

The family tax relief credit is a $350 payment to certain middle-income New Yorkers.

 

In the Fall of 2014, the Tax Department will automatically mail checks to eligible taxpayers. If you are eligible for the credit, you do not have to apply. If you think you are eligible, but do not receive a check, you will be able to have your case reviewed.

 

Eligibility requirements

 

You are entitled to this credit for 2014 if, on your 2012 return, you:

 

were a resident of New York State for the entire year,

claimed at least one child under age 17 as a dependent,

had New York State adjusted gross income (line 33 of your Form IT-201) between $40,000 and $300,000, and

had a New York State liability after credits that is zero or greater.