New Jersey Extends Homestead Rebate Deadline

NJ Extension Web

 In an attempt to provide property tax relief to residents, the state of New Jersey has established the Homestead Benefit Program, which allows for a credit against property taxes paid in prior years. For 2015, applicants may apply for a credit against 2013 New Jersey property tax paid, assuming they meet certain eligibility requirements.  In order for a New Jersey resident to qualify, they must have paid their 2013 property taxes for a home which was their principal residence on October 1, 2013. The Homestead Benefit is available only to those whose New Jersey gross income (does not include tax-exempt income) was less than $75,000 in 2013. The income limit is increased to $150,000 for those 65 or older or blind or disabled in 2013.  Income limits apply equivocally to a single individual, as well as those married filing joint and separate. 

According to the 2012 Homestead Benefit Program, the state paid more than $369 million in benefits to New Jersey homeowners, averaging around a $450 benefit per taxpayer. The state has not received the typical amount of applications for 2015 and has extended the due date to December 31, 2015 from October 30, 2015. Eligible homeowners may file applications with the state of New Jersey either online on the state website or by phone at 1-877-658-2972.

For more information, or if you have any questions about this or any other tax matter, please contact your Wilkin & Guttenplan advisor or email us at This email address is being protected from spambots. You need JavaScript enabled to view it..

Social Security Updates Coverage Threshold for Household Employees

SS Updates 1

The Social Security Administration (SSA) has announced some new rules concerning household employees. Household employees are individuals that are hired to do everyday tasks such as babysitters, house cleaners, drivers and nannies. Those individuals that have domestic/household employees may need to withhold and pay Social Security and Medicare taxes on the wages paid if they meet certain requirements. The term “nanny taxes” has been coined for the taxes withheld and paid by the employer for their household employees. For 2016, the Social Security Administration recently announced that if you pay a domestic employee cash wages of $2,000 or more then you need to pay “nanny taxes”. The SSA has increased the threshold by $100 from 2015.  This threshold applies on a per individual basis. It is important to note that employees that can control the work being completed would not be considered a domestic or household employee. If you do have any domestic employees, you should be careful of misclassifying the individual as an independent contractor.

For more information, or if you have any questions about this or any other tax matter, please contact your Wilkin & Guttenplan advisor or email us at This email address is being protected from spambots. You need JavaScript enabled to view it..

IRS Eliminates W-2 Extensions

IRS eliminates W2 extensions

In the fight against identity theft, the Internal Revenue Service (IRS) will be eliminating the automatic 30-day extension for the W-2 series forms (excluding Form W-2G). This change will be effective as of July 1st, 2016 and will be applicable for the 2017 tax filing season. The IRS hopes that disallowing extensions for W-2s will reduce the risk of fraud. There has been an increase in the filing of falsified returns where identity thieves were applying for refunds. The automatic extension of the Form W-2 provides an opportunity for identity thieves to apply false W-2 amounts and use stolen social security numbers to file falsified returns early in the tax filing season. Once the return has been filed, the IRS processes the return and issues a refund. Taxpayers who are victims of fraudulent tax returns have to go through a lengthy process of securing their personal information and correcting their filings with the IRS. By reducing the amount of time employers have to file the Form W-2, identity thieves have significantly less time to file fraudulent returns; the IRS will be able to better match actual Form W-2 amounts to filed returns.

The current due dates remain unchanged. Paper forms are still due the last day of February while electronically filed forms are due March 31st. The new regulations eliminate the provision which allowed for an automatic 30-day extension and a second non-automatic 30-day extension, replacing them with a single non-automatic 30-day extension. These changes go into effect on July 1st, 2016.

For more information about this topic, please contact your Wilkin & Guttenplan advisor. 

IRS Tries to Combat Identity Theft by Assigning Identity Protection PIN's

TST IRS Tried to Combat Identity Theft

 

Over the past four years, the IRS has begun issuing Identity Protection Personal Identification Numbers (IP PINs) to taxpayers who have either been actual or suspected victims of identity theft.  An IP PIN is a six-digit number assigned to eligible taxpayers by the IRS in order to prevent both the misuse of taxpayers’ social security numbers on fraudulent tax returns, as well as the lengthy processing delays that come along with such suspicion by the IRS.  At the moment, eligible taxpayers include those who have received either notice CP01A (which provides an IP PIN) or CP01F (which invites the taxpayer to obtain an IP PIN) from the IRS, as well as residents of Florida, Georgia, or Washington DC, since those three states have the highest per-capita percentage of tax-related identity thefts in the country.

A new IP PIN is sent to taxpayers who have opted into the program each December by postal mail and must be included on the taxpayer’s Federal income tax return.  Without the correct IP PIN, the taxpayer’s electronically filed tax return will simply be rejected; filing a paper tax return without the IP PIN, on the other hand, will delay the processing of the return, and therefore any Federal tax refund that the taxpayer may be entitled to.  At this time, the use of IP PINs are only required for the primary taxpayer listed on a tax return; however, starting in 2016, there will be new requirements for all taxpayers with IP PINs, including spouses and dependents. 

For more information about this topic, please contact your Wilkin & Guttenplan advisor or visit the IRS’s recently issued IP PIN FAQs here.

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