New Jersey 2008 Homestead Rebate Due Date And Other Information

Posted by The Happy Rock on August 5, 2009

If you were wondering when the New Jersey(NJ) 2008 Homestead Rebate application is due or if you are eligible for the property tax rebate you came to the right place.

The deadline for filling the NJ Homestead rebate is September 1st 2009. The application packets were mailed the week of July 27th and everyone should have them by August 11th. For those that didn’t receive a packet then go to How To File Section for more information.

The easiest way to file is to use the NJ Homestead web filing application. You will not need any other information than your id and pin from your Homestead paper packet and your Gross Income for 2008.

NJ Homestead Rebate Explanation

The Homestead Rebate Program provides rebates for homeowners and tenants who occupied their principal residence in New Jersey on October 1, paid property taxes on that dwelling either directly or through rent, and whose gross income for the entire year does not exceed certain limits.*

The rebate is for a portion of the property taxes paid one a dwelling, so it runs a year behind just like filing for regular taxes. The application for the 2009 Homestead Rebate will be filed in 2010. To make it even more confusing the 2008 rebate is based on the dwelling’s 2006 taxes not, not the 2007 or 2008 taxes.

Income Limits

NJ also lowered the income limit this year so more people will be excluded. You will only get a rebate if you make $75,000 Adjusted Gross Income for a household/couple not per person. We were able to file last year and normally get about $600 back, but the new limit pushes us out since we are a one and a half income family that makes more than $75,000 gross.

How much will you get back?

Basically the NJ rebate boils down to 20% back on your first $10,000 of property taxes paid in 2006 if you gross under $50,000 and 13.34% if you gross between $50,001 and $75,000. Here is the link to the table if you want to see it more clearly.

When will I get my check?

The checks are expected to be mailed/deposited in October. Mailing for Senior and disabled tax payers began July 31st as their deadline wasune 1st 2009. You can check your NJ Homestead rebate status on the NJ Taxation site although the online system hasn’t been updated with the 2008 information yet.

If you have any questions that I didn’t cover, leave a comment below and I will update the post to include the answer.

» Filed Under Real Estate, Taxes

6 Reasons You Should Hire A Certified Public Accountant(CPA) To Do Your Taxes

Posted by The Happy Rock on March 11, 2009

I mentioned last year that against my frugal intuition I shelled out the big bucks to hire a CPA to do my taxes. I wanted to follow that post up and share my insight after another year of experience and knowledge to answer the question is it worth getting a CPA to do your taxes. Here are six reasons you should consider hiring a good Certified Public Accountant:

Your taxes are somewhat complicated. Complicated can mean any of the following: extra income from say blogging or contracting, investments, child care expenses during work hours, mortgages or refinancing, energy efficient home repairs, adoptions, rental income, numerous charitable donations, gambling income, job related moving expenses, etc. A good CPA will be able to advise you on the best way to handle your current statement and they will probably even ask about things that you never thought were deductible. Even if your taxes aren’t complicated it may still be worth you time. The Happy Boulderette made below the poverty line during the last year of volunteering and had about the easiest taxes you could ask for, but she saw over a $1,000 difference between online tax preparation software and bartered CPA services.
They are good at what they do and they usually like it. The CPA certification requires them to learn about the tax code and requires them to seek continuing education. The tax code in the US is quite ridiculous and overwhelming. If we are honest with our selves, most of us despise doing taxes and have only a cursory knowledge of the tax code. Let them focus on what they do best and you use your energy for what you do best.
CPA will make suggestions for cutting your tax bill for years to come. Things like keeping receipts for energy bills or other home based business expenses. Maybe charitable donations that you didn’t know were deductible or energy efficient home repairs/upgrades. Those tips will have a compound effect every year you implement them. Just one $500 change would be worth $15,000 over the next 30 years.
No Stress! I have used both online tax software and a CPA and I can’t begin to tell you how good it feels to use a CPA. No nagging questions of whether you understood the tax code. No questions of did you get the most deductions. You still have to prepare the information for them to process, but they are their to answer any questions and guide you the whole way. It is that wonderful.
Computers aren’t humans. They can’t talk you. They don’t reassure you. They offer a one way flow of information, not a conversation. The software might not even be intuitive to you. One skipped or misunderstood check box and you could miss out on a big deduction. Tax software is generally pretty good. I have used Turbo Tax and Taxcut and even a local tax service(like H & R Block), but the they don’t hold a candle to a CPA for me. Did I really have to claim my babysitter as an employee? Can I deduct my home office even if my laptop sits in my living room? Those were not easy questions for me to answer with any degree of confidence while using software. They were answered thoroughly and reassuringly in minutes with a CPA. Computers and software also don’t do a good job of answering tax questions after your taxes have been filed, or when you buy a new house, or lose your job, or any host of other reasons that raise questions in your mind about taxes.
It doesn’t cost as much as you think. Last year’s taxes cost me double what a regular tax service charged me and about 8 times what software charges, but we are only talking a few hundred dollars in most cases. It sounds like a lot, except that for most of us one small tip can easily recoup that cost. Also the bill is usually quite small when compared to the amount of money we are handing over to the government throughout the year. Lastly, if you don’t like the outcome you can resume your favorite tax preparation system the following year without any long term commitment.

All I can say is that I am a cheap frugal stick in the mud, I am not even giving a second thought to shelling out a few hundred dollars this year. For me, it is unquestionably worth the money and this is coming from a guy that would jump through hoops to save 5 bucks.

» Filed Under Productivity(Financial), Taxes

DOW Down 778 Points – My Response

Posted by The Happy Rock on September 30, 2008

Nothing. Ok, nothing is a exaggeration, but it drives home the point that nothing has changed from a personal perspective. The principles remain the same after after a horrid financial day as they were on Sunday when things weren’t this bad. If anything a day like today should make you more eager to dump your debt and get on solid financial ground so that you can be in as much control as possible. Ultimately other than trying to influence your representative, you can only control what you do. Wasting energy in fear and stress will only harm you unless it provides stronger motivation to change you financial future.

Spend Much Less Than You Earn
Get Out Of Debt
Have a 3-6 month emergency fund. If you feel uncomfortable in these time, 6-8 might be a better goal.
Save For Retirement.

Since I have already accomplished 1-3, I will continue to save for a house down payment. As far as retirement, I will continue my deposits(with company) match. If you have faith that the US economy and stock market will figure things out in the long run, then keep buying like you have been. Things like selling your stock and going to cash type assets might save you some money, but adds a lot of stress and opens the window for missing out on bargain buys. I won’t be changing a thing with regard to my investments other than making a concerted effort to not check my balances to avoid stress, fear, and the motivation to do something stupid.

As far as the bailout is concerned, I was glad to see that there were representatives that were listening to constituents and doing their best to make sure that taxpayers didn’t get taken advantage of. I loved to see government in action like it was last week with everyone working together, although I could do without the political name calling and posturing.

I would love to see a solution that allows those that caused the mess to bear the burden rather than the taxpayers. Options like government loaning money rather than giving Paulson a blank check to give free money were he deems fit. It seemed like there were many good changes to the bill over the weekend like removing earmarks, allowing for non free money help, and adding more protection for the taxpayers, but ultimately the bill stayed about the government going into much more debt so that they can hand out free money to keep the housing market artificially inflated and keep the credit markets flowing. Should they have signed the bill today, possibly. Although a collapse could end up being a self fulfilling prophecy fueled by fear.

I do know that government needs to get back to the principles above, but neither candidate has come close to committing to anything of the sort.

» Filed Under About Me, Debt Elimination, Taxes

State of the US Economy – Scary Stuff or Nothing to Worry About?

Posted by Debt Destroyer on September 18, 2008

Bear Sterns, Freddie & Fannie, Lehman Bros, Merrill Lynch, AIG…all big names that I normally don’t care anything about.

Until now.

Yesterday while I was mindlessly entering data (my new part time job) I was also listening to a Public Radio program called “Fresh Air”. Joining host Terri Gross was Michael Greenberger, who proceeded to explain how Wall Street’s woes could affect other markets, including money markets.

It opened my eyes (or should I say ears) to how the recent headlines could end up affecting me.

Click here to listen for yourself.

Spoiler Alert!!! Spoiler Alert!!! Even though Mr. Greenberger spent most of the interview describing rather negative scenarios, he did end by saying he doesn’t recommend putting your money under your mattress.

NPR also helped calm my fears by posting this article about history’s advice during a panic.

Which is, DON’T PANIC

Makes sense I guess.

On my way out a couple of older ladies I work with engaged me in a conversation about the current situation. One brought up that she’s too old for her investments to recoup the recent losses and that she may have to put off retirement. The other one said she was glad she was 62 and not 32, because she thinks things will be fine for her generation but not the ones after her.

Now even though I had just listened to 40 minutes of pretty gloomy stuff, I wasn’t nearly as pessimistic as these two were.

Should have I been?

What do you think about all the recent financial hullabaloo? Is it something that we should be collectively worried about? Or will things shake out so we can go back to being concerned about lipstick on farm animals?

At dinner Mrs. Debt Destroyer wondered what we’d do if the bottom fell out of America’s financial system. I told her we’d probably just keep doing what we’ve been doing since we’ve discovered The Happy Rock:

Get rid of our debt.
Cut down on expenses
Do our best to stay afloat

Of course we’d probably have to act much faster than we currently are, but I think we’d pull through.

It’s not like I’m losing sleep over this yet…

Poor kid, I bet this week has been brutal.

Until next time,

-DD

» Filed Under Misc., Taxes

New Jersey 2007 Homestead Rebate Deadline – August 15th Extended

Posted by The Happy Rock on August 17, 2008

The original filing deadline for the New Jersey(NJ) 2007 Homestead Tax Rebate was on Friday August 15th. Fortunately New Jersey extended the Homestead Rebate filing deadline until October 31st 2008 for those that missed it.(1)

Homeowners who owned a house in New Jersey before October 1st of the previous year, paid property taxes, and make less than $150,000 AGI are eligible for a tax rebate. You can view the exact eligibility requirements here on the NJ Taxation website. Also remember that the NJ State Budget requires that they use the 2006 property tax amount in order to help cut costs. The last couple of years we have gotten back about 20% of our yearly property taxes(~$600), but you can view specific rebate calculations here.

If you think you qualify and haven’t received a packet in the mail or have other questions, view the official FAQ for answers.

Source
1. NJ Taxation Site

» Filed Under Real Estate, Taxes

What Exactly Is The Stimulus Check? Not A Rebate?

Posted by The Happy Rock on May 14, 2008

As I discussed whether it’s our patriotic duty to consume our rebate checks, I started thinking that I didn’t fully understand what the ‘rebate’ check is anymore. Everyone calls it a tax rebate check, but it seems to have morphed into a handout or something else along the lines. Originally, it seemed like it would be rebate on our 2008 taxes based on our 2007 returns.

It doesn’t seem to be that clear cut anymore. Even the language of the media and the IRS website don’t seem to mention rebate anymore, just payment. Is it a handout? Is it a rebate? A modified one time tax cut? Let’s dig into a few specifics to try and figure out what it really is.

First it isn’t taxable income or a rebate, since your 2007 and 2008 taxes won’t seem to be effected. A rebate is a refund for money you paid. According to the IRS :

It’s not taxable, and it won’t reduce your 2007 or 2008 refund or increase the amount you owe when you file your 2008 return. (1)

The next thing of note is that some groups of people are eligible who don’t pay taxes.

Families with children under 17 generally will qualify for an additional payment. Some people with no tax liability also will qualify. This includes Social Security and Railroad Retirement beneficiaries, recipients of certain veterans’ payments, low-income workers with earned income and/or benefits of at least $3,000 and individuals who have combined income of at least $3,000 from any combination of these sources. (2)

So there is an element to the stimulus package that includes handouts. Depending on your stance that may be fine, but it wasn’t how the original package was ‘sold’.

Finally, the benefit starts to phase out for people “with adjusted gross incomes (AGI) over $75,000 and married couples who file a joint return with AGI over $150,000.(3)” Some people will get no stimulus.

So it what it looks like is a one time tax cut, with a hand out portion, for middle and low income people. No rebate, just government borrowing money to hopefully support our overconsumption in hopes that it will stimulate the economy. Overconsumption could be argued as a big reason why we need economic ‘stimulus’ in the first place. And I thought they had a plan to pay the money back with 2008 tax money…silly me. Borrow and spend without a plan, a basic tenant of solid personal finance, right? Either way, I am personally glad to receive a $1,500 check in electronic mail, but I at least want to know what the money is and were it is coming from.

Source :
(1) – IRS Basic Stimulus Information
(2) – IRS Stimulus FAQ
(3) – IRS Stimulus Phase Out

» Filed Under Spending, Taxes

To Stimulate Or Not To Stimulate?

Posted by The Happy Rock on May 12, 2008

The Happy Rockette mentioned something about our stimulus check that got me thinking. We already have a plan to spend the money on some improvements to the condo. We can enjoy then for the next year our and they will help our house sell when the time comes. I mentioned that the $1500 would look pretty nice in our down payment account, and she hinted that we should use the money for its designed purpose….to stimulate.

She was being somewhat tongue and cheek to counter act my subverting of the plan, but until that moment I hadn’t considered that people might feel obliged to spend money to ‘help’ the economy. In my opinion, the money was ours not the governments and we are free to do whatever we chose with it. This includes paying consumer debt, if we had it, or even throwing it under the mattress. Is it our patriotic duty to spend the money? Will it even make a difference? Thought-provoking questions.

To help answer the question I did a little digging into what kind of effect stimulus payments can have on the economy. Here are a few quotes from the Congressional Budget Office(CBO) on the matter :

“Most studies of purely temporary, one-time changes in taxes have suggested that they have only a moderate effect on household consumption,” the CBO said, noting studies of a rebate issued in 1975 “suggested that only 12% to 24% of the rebate was consumed in the quarter that it was received.”

CBO said though “the experience of the 2001 tax rebate appears to differ from the findings of these earlier studies.” CBO noted the 2001 rebate was part of a broader tax package which lowered tax rates and applied those reductions retroactively. In 2001, most households received rebate checks of either $300 or $600 from late July 2001 to the end of September 2001 during a recession.

“Most analysts agree that the 2001 rebate stimulated the economy,” CBO said, “although there is some debate about the magnitude of the effect.” Households, according to one study, spent between 20% and 40% of their rebate amount in the quarter in which the rebate was received.*

So it looks like there is potential for the stimulus checks to infuse economy with a little money, but there is plenty of debt as to whether our government borrowing money to give to people to spend will do anything to truly stimulate the US economy.

So the question remains stimulate or not to stimulate, what’s your answer?

*Source – The Winners and Losers of the Stimulus Package

» Filed Under Spending, Taxes

Find Out The Delivery Date Of Your IRS Stimulus Package

Posted by The Happy Rock on April 16, 2008

The IRS lists the schedule of the stimulus package checks for tax returns processed by April 15th. The dates are determined by the last two digits of you Social Security Number and whether you are using direct deposit or paper check. According to the schedule our $1500 rebate should be direct deposited on May 9th. We plan to comply with the stimulus directive and do a couple of projects around the house.

Click Here for the Stimulus payment schedule.

Update – It looks like the checks will start shipping on Monday the 28th of April, a week earlier than the IRS originally posted according to CNN.

Update 2 – We received our $1500 stimulus payment by direct deposit on May 9th. May 9th was the exact date listed in the 2nd group of direct deposit, so it looks like they are arriving on time.

» Filed Under Taxes

Check The Status Of Your Federal IRS Tax Refund

Posted by The Happy Rock on April 15, 2008

I thought this was a useful little page provided by the IRS. With you Social Security Number, Tax filing status, and the refund amount you can find out the status of your 2008 Federal Government taxes.

I got this message:

We have received your tax return and it is being processed. Unless we find mistakes or you owe other taxes, you should receive your refund by April 29, 2008.

I will be surprised if the direct deposit takes that long, but I did file closer to the deadline when it is busier.

Click Here to check your status.

» Filed Under Taxes

Professional Tax Preperation Saved Me Over $5,000

Posted by The Happy Rock on April 7, 2008

Well, the results are in from the CPA vs. Turbo Tax and other DYI tax programs fight. The winner is………quality professional tax preparation by a landslide.

Here is the break down:

My CPA isn’t responsible for all of the savings, but the service was definitely worth the cost. First, we tuck away 40% of The Happy Rockette’s paycheck, so we knew we had more than enough for our 2007 taxes. We were expecting a bill of around $4,000 dollars between federal and state.

One big difference was that we made about $6,000 less than 2006. I didn’t work any overtime and had $3,000 of gambling winnings to claim in 2006. We also donated $1,500 more in 2007. That accounts for some of the shift, but almost all of the rest came from the great tax advice.

I was going to do my own taxes to compare, but looking through the return I can see where most of the savings and deductions came from. The highlights are:

$750 dollars in mileage and expenses for the Rockette’s consulting that I wouldn’t have filed.
$1,000 of extra itemized deductions.
Plethora of savings for The Happy Rock including a percentage of my home depreciation and utility costs, equipment depreciation, and expenses that I wouldn’t have known to claim.
Proper handling of child care expenses.

That is a great list for the measly cost of $400, but I now also know what receipts and expenses that I should track to claim in 2008 which will save me thousands going forward. The only part I regret is that I didn’t pay for professional services years earlier! More money back in my pocket with a lot less stress, you can’t beat that.

» Filed Under Money Savers, Taxes

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