New Jersey Specific

May 7, 2012: Homestad Rebate Applications

posted Sep 20, 2012, 1:53 PM by Unknown user

The the NJ Division of Taxation is in the process of mailing out the 2011 Homestead Rebate Applications. You may recall that the NJ gross income limitation was $75,000 ($150,000 for those over 65 or disabled). The state is generally standing by these guidelines, but is disclaiming that these limits may be changed based on the State Budget for FY 2013, which must be adopted by July 1, 2012. There is no indication whether the limitation will go down, stay the same, or go up.

While we cannot guarantee this will happen again, the NJ Division of Taxation has extended the filing deadline for this program for at least the past four years. We suggest you keep a close eye on this deadline and if it is extended beyond the passing of the budget (i.e. after 7/1/2012), then file your application if you qualify. This is to avoid any applications filed that are not qualified. If an application is filed but not qualified, and there is anything in the application that may diminish your property tax benefits, the State of NJ has been known to use those disqualified applications against taxpayers to take away other property tax benefits.

KEY WARNINGS:

1. These property tax benefits can only be filed for your principal residence on October 1, 2011. If you owned multiple pieces of real estate, you can ONLY file a homestead rebate on the property you occupied as your principal residence on that date. DO NOT FILE FOR MORE THAN ONE PROPERTY.

2. Be careful of multiple ownership situations. If you co-own a property with someone other than your spouse, you must show your ownership percentage and your homestead benefit will be adjusted accordingly. This applies whether or not the other person lives in the home or pays the real estates taxes.

3. Be aware of multiple dwelling situations. If your property consists of a portion where you live and a portion which you rent out/use for business purposes, then you must also show the percentage of the property that you occupy as your personal residence.

Please see the attached link for more information:
http://www.state.nj.us/treasury/taxation/homestead/geninf.shtml

As always, our standard disclosure applies that the information posted here is for general information and does not constitute legal, tax, or financial advice. Please call our office at 201-377-5965 if you have any questions about your specific situation.

April 24, 2012: NJ EIC Audits

posted Sep 20, 2012, 1:52 PM by Unknown user

As you know, any tax return submitted to a taxing authority is subject to examination or audit, regardless of how well the return is prepared. The NJ Division of Taxation has taken special aim at those returns claiming Earned Income Credit. If you have a received a notice requesting documentation to substantiate your claim for Earned Income Credit, please be advised that this is NORMAL.

Our general advice is to comply with the information request, but please contact us so we can ascertain whether your specific circumstances require a different action.

If you'd like some background on this program, please see: http://www.state.nj.us/treasury/taxation/eitcinfo.shtml

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