Tax time Feb 13, 2014

Page 1

Tax Time

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+RPHRZQHUV PXVW Ă€OH +RPHVWHDG 'HFODUDWLRQ Vermont  towns  classify  property  on  their  grand  lists  as  either  homestead  or  nonresi-­ dential.  A  different  school  property  tax  rate  applies  to  homestead  and  nonresidential  properties.  Homestead  property  is  owned  and  oc-­ cupied  by  a  Vermont  resident  as  his  or  her  SULQFLSDO KRPH RQ $SULO DQG GHFODUHG DV D KRPHVWHDG RQ )RUP +6 6HFWLRQ $ WKDW LV ÂżOHG ZLWK WKH 9HUPRQW 'HSDUWPHQW of  Taxes.  A  Homestead  Declaration  must  be  ¿OHG HDFK \HDU Nonresidential  property  falls  into  three  categories: 3URSHUW\ XVHG IRU FRPPHUFLDO SXUSRVHV or  as  a  camp,  second  home  or  summer  cot-­ tage. 3URSHUW\ QRW GHFODUHG DV D KRPHVWHDG E\ WKH GXH GDWH $SULO 3URSHUW\ QRW XVHG DV D KRPHVWHDG RQ $SULO $ +RPHVWHDG 'HFODUDWLRQ PXVW EH ÂżOHG each  year  by  Vermont  resident  homeowners  who  own  and  occupy  property  as  their  prin-­ FLSDO KRPH RQ $SULO 3HUVRQV ZKR KROG D life  estate  to  their  home  or  who  transferred  WKH KRPH LQWR D UHYRFDEOH WUXVW DOVR PXVW ÂżOH a  Homestead  Declaration.  The  property  tax  adjustment  assists  Ver-­ mont  residents  to  pay  property  tax  and  is  based  on  a  percentage  of  household  income.  The  adjustment  is  credited  to  your  property  tax  and  the  town  issues  a  bill  for  any  bal-­ ance  due. (OLJLEOH +RPHVWHDG RZQHUV PXVW ÂżOH D FODLP E\ $SULO WR UHFHLYH DQ DGMXVWPHQW to  property  tax.  Generally  an  adjustment  is  not  available  to  households  whose  income Â

LV RU PRUH <RX PD\ EH HOL-­ gible  for  an  adjust-­ ment  if: ‡ <RX KDYH ÂżOHG a  Vermont  Home-­ stead;Íž ‡ <RX ZHUH D Vermont  resident  all  RI FDOHQGDU and ‡ <RX DUH QRW claimed  as  a  depen-­ dent  of  another  tax-­ payer  for  tax  year  Documents  you  ZLOO QHHG WR ÂżOH ‡ &RS\ RI SURS-­ erty  tax  bill. ‡ ,QFRPH LQ-­ formation  for  you,  your  spouse/ civil  union  part-­ ner,  and  all  other  members  of  the  households  such  DV : 6 6 $ 6 6 $ 6 5 5 % 5 5 % business  in-­ come  information 7R ÂżOH D GHFODUDWLRQ JR WR WKH 9HUPRQW Department  of  Taxes  website,  www.state. vt.us/tax/index.shtml,  and  follow  the  â€œIndi-­

LET US HELP!

When  it  comes  to  taxes,  everyone  has  DQ RSLQLRQ 7KHVH TXRWHV UHĂ€HFW WKH RSLQ-­ ions  of  their  authors;Íž  their  inclusion  here  LV QRW DQ RIÂżFLDO ,56 HQGRUVHPHQW RI WKH sentiments  expressed. “Income  tax  has  made  more  liars  out  of  the  American  people  than  golf.â€?  â€”  humorist  Will  Rogers “I  am  proud  to  be  paying  taxes  in  the  United  States.  The  only  thing  is,  I  could  be  just  as  proud  for  half  the  money.â€?  â€”  Arthur  Godfrey,  entertainer Âł3HRSOH ZKR FRPSODLQ DERXW WD[HV can  be  divided  into  two  classes:  men  and  women.â€?  â€”  Unknown

IRS2Go (Continued  from  Page  1) IURP ,56 *R 7KH WUDQVFULSW ZLOO EH GHOLYHUHG YLD 8 6 3RVWDO 6HUYLFH WR WKHLU DGGUHVV RI UH-­ cord. ‡ Stay  Connected.  Taxpayers  can  interact  with  the  IRS  by  following  the  IRS  on  Twit-­ ter,  @IRSnews  or  @IRSenEspanol,  watching  KHOSIXO YLGHRV RQ <RX7XEH VLJQLQJ XS IRU email  updates,  or  by  using  the  Contact  Us  fea-­ ture. )RU PRUH LQIRUPDWLRQ RQ ,56 *R SURGXFWV vidualâ€?  tab  to  the  form.  Or  go  directly  to  and  services  through  social  media  channels  https://secure.vermont.gov/hd/index. and  other  media  products,  visit  www.IRS.gov.

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IRS2Go  app  available  for  iPods,  smart  phones WASHINGTON  â€”  The  Internal  taxpayers  another  way  to  Revenue  Service  last  week  released  TXLFNO\ JHW LQIRUPDWLRQ ,56 *R DQ XSGDWH WR LWV VPDUW-­ and  help  around  the  clock,â€?  phone  application  featuring  new  said  IRS  Commissioner  John  added  features  available  in  both  Koskinen.  â€œThe  IRS  is  focused  English  and  Spanish. on  providing  taxpayers  with  7KH UHGHVLJQHG ,56 *R SUR-­ convenient  self-­service  tools  like  vides  new  features  for  taxpayers  ,56 *R ZKLFK SURYLGHV GHWDLOV to  access  the  latest  information  on  everything  from  tax  refunds  to  to  help  them  in  the  preparation  free  tax  assistance.â€? of  their  tax  returns.  In  this  ver-­ 7KHUH KDYH EHHQ DERXW PLO-­ VLRQ ,56 *R KLJKOLJKWV WKH OLRQ GRZQORDGV RI ,56 *R VLQFH LWV addition  of  an  innovative  new  LQFHSWLRQ LQ L3KRQH DQG L3RG refund  status  tracker,  provid-­ Touch  users  can  update  or  download  ing  taxpayers  an  easy-­to-­use  WKH IUHH ,56 *R DSSOLFDWLRQ E\ YLV-­ feature  to  follow  their  tax  return  throughout  iting  the  iTunes  App  Store.  Android  the  process. XVHUV FDQ YLVLW *RRJOH 3OD\ WR GRZQORDG WKH Âł7KH QHZ YHUVLRQ RI ,56 *R SURYLGHV IUHH ,56 *R DSS

The  newest  version  of  the  free  mobile  app  offers  a  number  of  safe  and  secure  ways  for  taxpayers  to  access  other  popular  tools  and  the  most  up-­to-­date  tax  information,  includ-­ ing: ‡ Refund  Status.  Taxpayers  can  check  the  status  of  their  federal  tax  refund  through  ,56 *R 3HRSOH VLPSO\ HQWHU WKHLU 6RFLDO Security  number,  which  will  be  masked  and  encrypted  for  security  purposes,  then  select  WKHLU ÂżOLQJ VWDWXV DQG HQWHU WKH DPRXQW RI WKHLU DQWLFLSDWHG UHIXQG IRU WKHLU WD[ return.  A  new  refund  status  tracker  has  been  added  so  that  taxpayers  can  follow  their  tax  return  throughout  the  process.  Users  can  FKHFN WKHLU UHIXQG VWDWXV KRXUV DIWHU WKH ,56 DFNQRZOHGJHV UHFHLSW RI DQ H ÂżOHG UH-­ turn,  or  four  weeks  after  mailing  a  paper  re-­

turn.  The  IRS  reminds  taxpayers  the  tool  is  updated  just  once  a  day,  usually  overnight,  so  there  is  no  reason  to  check  more  than  once  a  day. ‡ Free  Tax  Prep  Providers.  The  IRS  Volunteer  Income  Tax  Assistance  (VITA)  and  the  Tax  Counseling  for  the  Elderly  7&( 3URJUDPV RIIHU IUHH WD[ KHOS IRU WD[-­ SD\HUV ZKR TXDOLI\ 7KLV EUDQG QHZ WRRO RQ ,56 *R ZLOO KHOS WD[SD\HUV ÂżQG WKH QHDUHVW VITA  site  to  their  home  by  simply  entering  their  zip  code  and  selecting  a  mileage  range.  By  clicking  on  the  directions  button  within  the  results,  the  maps  application  on  the  de-­ vice  will  load  with  the  address,  making  it  easy  to  navigate  to  your  desired  location.  their  tax  account  or  tax  return  transcript  (See  IRS2Go,  Page  4)

Tax  credit  eligibility  paves  ZD\ IRU 9W IRRG EHQHÂżWV SOUTH  BURLINGTON  â€”  The  Earned  Income  Tax  Credit  (EITC)  can  make  life  a  little  easier  for  working  Vermonters  strug-­ gling  to  make  ends  meet  with  a  credit  up  to  $6,044.  In  addition,  any  family  with  dependent  children  who  receives  the  Ver-­ mont  EITC  is  automatically  income  eligible  IRU IRRG EHQHÂżWV WKURXJK 6TXDUHV97 WKH group  Hunger  Free  Vermont  points  out.  7KH ,56 HVWLPDWHV RQH LQ ÂżYH HOLJLEOH taxpayers  could  miss  out  on  EITC  because  they  are  un-­ aware  of  this  valu-­ able  tax  credit. “Many  people  ZLOO TXDOLI\ IRU (,7& IRU WKH ÂżUVW time  this  year  because  their  income  de-­ clined,  their  marital  status  changed,  or  their  IDPLOLHV JUHZ ´ VD\V )D\H &RQWH 6TXDUHV-­ VT  Advocate  at  Hunger  Free  Vermont. Âł:LWK WKH FRQQHFWLRQ WR 6TXDUHV97 these  same  families  not  only  save  money  with  the  tax  credit,  but  also  put  more  nutri-­ tious  food  on  the  table.  The  average  month-­ O\ 6TXDUHV97 EHQHÂżW LV RYHU IRU D family  with  children.  An  added  bonus  is Â

WKDW FKLOGUHQ ZKR JHW 6TXDUHV97 EHQHÂżWV DOVR TXDOLI\ IRU IUHH VFKRRO PHDOV IXUWKHU stretching  families’  food  budgets.  I  encour-­ DJH DQ\RQH ZKR HDUQHG OHVV WKDQ LQ WR VHH LI WKH\ TXDOLI\ ´ (,7& LV D ÂżQDQFLDO ERRVW IRU ZRUNLQJ people  hit  hard  by  economic  times  while  also  providing  economic  stimulus  for  the  VWDWH ,Q 9HUPRQWHUV UHFHLYHG (,7& EULQJLQJ RYHU PLOOLRQ IHGHUDO dollars  into  the  state  at  an  average  credit  of  SHU KRXVHKROG “Check  with  the  IRS  to  VHH LI \RX TXDOLI\ HYHQ if  you  don’t  usually  ¿OH WD[HV ´ &RQWH VDLG “And  be  sure  to  apply  IRU 6TXDUHV97 <RXÂśYH HDUQHG QRW RQO\ WKH FUHGLW EXW DOO WKH DGGHG EHQHÂżWV WKDW FRPH along  with  it.â€? 7R ÂżQG RXW LI \RX TXDOLI\ IRU WKH (,7& FDOO RU YLVLW ZZZ LUV JRY For  help  preparing  your  taxes  for  free,  dial  WR PDNH DQ DSSRLQWPHQW LQ \RXU FRP-­ PXQLW\ )RU LQIRUPDWLRQ DERXW 6TXDUHV97 go  to  www.vermontfoodhelp.com  or  dial Â

RSVP  to  offer  free  tax  help  for  county  citizens 0,''/(%85< ² 5693 LV RQFH DJDLQ RIIHULQJ $$53ÂśV IUHH 7D[ $LGH SURJUDP IRS-­trained  volunteers  will  prepare  state  and  federal  income  tax  returns  and  answer  WD[ TXHVWLRQV IRU ORZ DQG PRGHUDWH LQFRPH residents  of  Addison  County.  Special  atten-­ tion  will  be  given  to  those  aged  60  and  older. Â

Computer  assistance  will  also  be  available  WR SHRSOH ZKR ZDQW WR ¿OH HOHFWURQLFDOO\ XV-­ LQJ IUHH WD[ VRIWZDUH 5693 YROXQWHHUV ZLOO be  available  at  sites  in  Middlebury  and  Ver-­ gennes. &DOO 5693 DW WR PDNH DQ DS-­ pointment.

EITC  Awareness Do  you  qualify? BOSTON  â€”  As  the  Internal  Revenue  Service  started  processing  returns  on  -DQ LW MRLQHG SDUWQHUV QDWLRQZLGH LQ launching  the  Earned  Income  Tax  Credit  Awareness  Day  outreach  campaign  to  ensure  that  millions  of  low-­and  moder-­ ate-­income  workers  get  the  credit  they  deserve  and  get  it  right. /RFDO RIÂżFLDOV DQG FRPPXQLW\ RUJD-­ nizations  across  the  country  are  holding  news  conferences  and  outreach  events  KLJKOLJKWLQJ WKH EHQHÂżWV RI WKLV NH\ work  incentive  for  individuals  and  fami-­ OLHV ZKR HDUQHG RU OHVV ODVW \HDU $Q HVWLPDWHG IRXU RXW RI ÂżYH HOLJLEOH workers  and  families  get  the  credit,  but Â

millions  miss  it  annually  either  because  WKH\ GRQÂśW FODLP LW ZKHQ ÂżOLQJ RU GRQÂśW ÂżOH D WD[ UHWXUQ DW DOO “One-­third  of  the  population  eligible  for  EITC  changes  each  year  as  their  personal  circumstances  change,â€?  said  IRS  Commissioner  John  Koskinen.  â€œWe  ZDQW ZRUNHUV ZKR PD\ TXDOLI\ IRU (,7& IRU WKH ÂżUVW WLPH WR KDYH DOO WKH LQIRUPD-­ tion  they  need  to  get  the  EITC  and  get  it  right.â€? The  EITC  varies  depending  on  in-­ FRPH IDPLO\ VL]H DQG ÂżOLQJ VWDWXV 7KH IRS  has  upgraded  the  interactive  EITC  Assistant,  at  www.irs.gov/eitc,  to  better  (See  EITC,  Page  3)

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