The IRS now has over 12,000 free tax preparation sites open nationwide to help taxpayers.  As part of it’s campaign to help low income and senior taxpayers, the Internal Revenue Service continues to expand its partnerships with nonprofit and community organizations providing vital tax preparation services for low- to moderate-income and elderly taxpayers.

The IRS Volunteer Income Tax Assistance (VITA) Program offers free tax help generally to people who earn $50,000 and less. The Tax Counseling for the Elderly (TCE) Program offers free tax help to taxpayers who are 60 and older.

Today, partners and local officials will be hosting news conferences or issuing news releases nationwide to highlight the Earned Income Tax Credit (EITC) and their free tax preparation programs. The EITC is one of the federal government’s largest benefit programs for working families and individuals. But taxpayers must file a tax return, even if they do not have a filing requirement, and specifically claim the credit to get the benefit.

Taxpayers need to present the following items to have their returns prepared:

• Photo identification
• Valid Social Security cards for the taxpayer, spouse and dependents
• Birth dates for primary, secondary and dependents on the tax return
• Wage and earning statement(s) Form W-2, W-2G, 1099-R, from all employers
• Interest and dividend statements from banks (Forms 1099)
• A copy of last year’s federal and state returns, if available
• Bank routing numbers and account numbers for direct deposit
• Other relevant information about income and expenses
• Total paid for day care
• Day care provider’s identifying number

To file taxes electronically on a Married Filing Jointly tax return, both spouses must be present to sign the required forms.

Trained community volunteers can help eligible taxpayers with credits, such as the EITC, Child Tax Credit or Credit for the Elderly. Also, many sites have multilingual volunteers who can assist people with limited English skills. To locate the nearest VITA site, taxpayers should call 800-906-9887.

As part of the IRS-sponsored TCE Program, AARP offers the Tax-Aide counseling program at more than 7,000 sites nationwide during the filing season. Trained and certified AARP Tax-Aide volunteer counselors help people of low-to-middle income with special attention to people age 60 and older. To locate the nearest AARP Tax-Aide site, call 888-227-7669 or visit AARP’s Internet site.

The military also partners with the IRS to provide free tax assistance to military personnel and their families. The Armed Forces Tax Council (AFTC) consists of the tax program coordinators for the Army, Air Force, Navy, Marine Corps and Coast Guard. The AFTC oversees the operation of the military tax programs worldwide, and serves as the main conduit for outreach by the IRS to military personnel and their families. Volunteers are trained and equipped to address military specific tax issues, such as combat zone tax benefits and the effect of the EITC guidelines.

In addition to free tax return preparation assistance, most sites use free electronic filing. An e-filed tax return means a fast refund. The IRS can generally issue refunds to taxpayers who combine e-file and direct deposit in as few as 10 days.

Taxpayers who file electronically also can opt to file now and pay later. If taxpayers owe, they can make a payment April 17, 2012, by authorizing an electronic funds withdrawal (direct debit) from a checking or savings account, paying by credit, by check or money order (made out to the United States Treasury) using Form 1040-V, Payment Voucher.

For taxpayers who want to prepare and e-file their own tax returns, there is IRS Free File. Everyone can use Free File, the free way to prepare and e-file federal taxes either through brand-name software or online fillable forms. Individuals or families with 2011 adjusted gross incomes of $57,000 or less can use Free File software. Free File Fillable Forms, the electronic version of IRS paper forms, has no income restrictions. For either service, taxpayers must go through www.irs.gov/freefile to access the programs.

Taxpayers also can seek free assistance at the 400 IRS Taxpayer Assistance Centers nationwide. Locations nationwide are listed on www.IRS.gov.

You can help members in your community by spreading the news about free tax help to the elderly and individuals who could use help with their taxes

source: irs.gov

If you’re like most Americans, filing your income tax can be a daunting task. Just being able to complete the income tax form correctly can be considered a victory. But before filing your income tax return, there are a few good tax tips regarding the tax breaks that were renewed and can be claimed on 2010 returns.

• State and local general sales tax deduction, primarily benefiting people living in areas without state and local income taxes. Claim on Schedule A, Line 5.
• Higher education tuition and fees deduction benefiting parents and students. Claim on Form 8917.
• Educator expense deduction for kindergarten through grade 12 educators with out-of-pocket classroom expenses of up to $250, Claim on Form 1040, Line 23 or Form 1040A Line 16.
• District of Columbia first-time homebuyer credit. Claim on Form 8859

For further information about these changes and for other tips on taxes, visit the IRS website.

source: irs.gov

Will TV production companies stop filming in New Jersey?  Odds are they will, if the state axes the tax credit for production companies. At a state hearing Wednesday, actors, producers and directors made their case to extend the tax credit.

Representatives from “Mercy” and “Law and Order: Special Victims Unit” urged Republican Gov. Chris Christie to reconsider ending the 20 percent tax credit the state has offered since 2006 to lure movie and TV production companies to the state. Both TV series are filmed largely in New Jersey.

New Jersey has benefitted greatly by the popular and successful TV drama “The Sopranos”. Feature films such as “The Wrestler” starring Mickey Rourke as a professional wrestler past his prime and “Julie and Julia” starring Meryl Streep as cooking legend Julia Childs were also filmed in New Jersey.

“If there hadn’t been a credit program in place, New Jersey would not have been an option” as a location for “Mercy,” series producer Jim Bigwood told the hearing chaired by state Senate Budget Appropriations Committee Chairman Paul Sarlo, a Democrat and supporter of the tax credit.

Yesterday’s hearing was held in the warehouse where hospital drama “Mercy” has been filmed since last year. The series was not renewed by NBC but had been considered for cable, a possibility that was nixed because of uncertainty over New Jersey’s tax credit, according to Brian O’Leary, tax counsel for NBC Universal.

O’Leary contrasted the fate of “Mercy” with that of “Law and Order: Criminal Intent,” a New York-filmed series that NBC dropped but opted to move to USA Network.

Critics have characterized New Jersey’s film tax credit as an unnecessary handout to Hollywood. Christie has vowed to cut it from the state budget that must be passed by July 1.

New Jersey will do anything to close it’s budget gap, but cutting the New Jersey tax credit to production companies will continue the flow of businesses leaving the state. According to a study released by Boston College’s Center on Wealth and Philanthropy, from 2004 through 2008, $70 billion in wealth left New Jersey.

Will the TV stars rally for a tax credit extension really make a difference? I don’t think so. It appears the state hasn’t learned that offering tax credits and tax incentives attract, and keep, businesses.

No wonder New Jersey has a budget deficit.

source: The Jersey Journal