Time to think about taxes

Local professionals offer tips that may help, By Mark J. Yablonsky When silver white winters melt into spring, taxpayers can always be certain of one thing: the arrival of April 15, tax time, is not far behind. That most dreaded date on the calendar is a mere eight weeks away now. But whether visiting a tax professional or going it alone at tax time, there are always a few tips any filer can learn. Here are some tips from local professionals. John F. Higgins is an Certified Public Accountant in Hardyston. “I think the first thing people should do is get out last year’s tax return,” Higgins said. “I use that as a map toward preparing this year’s tax return. It has all the previous year’s income and deductions, most of which will likely be repeated. In most cases, we’re creatures of habit and we don’t make changes easily.” Get it all down It’s a good idea to start compiling a list to have ready when starting to fill out the tax forms. Jim Heater is a tax preparer and enrolled agent for H&R Block in Newton. “Make sure you list all your dependents and make sure you have their social security numbers, too,” said Heater. Gathering paperwork. bills, receipts and records all year will pay off at tax time. “Get all your documents together, all of your W2s and in some cases, 1099 forms,” Heater said. Tip for the unemployed “This year, a lot of people are on unemployment. And they use what is called a 1099-G form. This year, the first $2,400 of unemployment is non-taxable. And you’d want to take advantage of that,” Heater said. Deductions When considering whether to itemize deductions or choose the standard deduction form, Heater advises everyone to “go with whatever gives you a tax benefit. We just want to make sure no one overpays on their taxes. Most commonly, homeowners are the ones who benefit most from the itemized deductions.” Higgins and Heater both stressed other deductions to look out for this year. “There’s a (federal) deduction available for people whose medical expenses exceed 7.5 percent of their income,” Higgins said. “But on the New Jersey returns, it’s only 2 percent. Most sources of income are subject to tax. But the mechanics of arriving at taxable income are different at the state and federal levels. It’s like apples and peaches.” There is another called the American opportunity tax credit for education and another for new homeowners. Timing For those who expect a return, there’s no time to lose. File early and get a return early. E-filing is the fastest way. And, those who don’t know which way it will go may benefit from getting their tax work done early, too. Whether it’s to gather the money needed to pay the government or to sooner receive that return. Whether going it alone or seeking professional help, there’s one thing that’s certain. It’s got to be done. “Taxes do not go away,” said Higgins.

I remember my father doing his taxes on a post card. All they wanted to know was his income.” Sharon Merle, office manager, H&R Block’s Newton and Sparta offices