I Am Exhausted With Seniors Complaining About Taxes
I am exhausted with seniors complaining about the burden of taxation. Arguments about living on a fixed income and rising costs do not resonate with me.
Most hourly workers and salaried workers live on fixed incomes as well. Yet we working people find a way to cope with the increasing costs of many things.
Taxes pay for lots of things that society values: education, roads, fire, medical and police services, water/sewer authorities, and many other services.
I find it repellent that somehow just because you reach a certain age that you somehow should get to opt-out and yet benefit from the things that taxation funds.
Imagine how nice it would be if seniors, the age group that votes in the highest numbers, instead turned their focus and attention toward some of the most urgent and pressing issues affecting their children and grandchildren, such as the climate crisis or the epidemic of gun violence. I think that would be a much more worthwhile endeavor than constant griping about the financial costs of being part of society.
How To Qualify For A Senior Tax Exemption
Property tax rules vary considerably from state to state. Seniors who meet state guidelines can take advantage of an exemption. For example, most states include these two rules to qualify:
- You must meet the minimum age for a senior property tax exemption
- The person claiming the exemption must live in the home as their primary residence
The minimum age requirement for senior property tax exemptions is generally between the ages of 61 to 65.
While many states like New York, Texas and Massachusetts require seniors be 65 or older, there are other states such as Washington where the age is only 61.
In New Hampshire, although youll need to be 65 or older, youll also benefit from an increased exemption as you age.
Many locations set income requirements as well. Earning too much may disqualify you, or the amount of your exemption will be reduced.
Most states have an official government website dedicated to taxes, revenue, or finance that will list the local rules for senior property tax exemptions.
A Google search for senior property tax exemptions should turn up yours.
How To Not Pay Property Taxes And Get Away With It
Ever heard of the PILOT program?
Thats an acronym for Payment In Lieu Of Taxes and its not a myth. It exists and I take advantage of the amazing tax benefits.
Because I provide clean, safe, affordable housing. Beyond that I also provide jobs. Housing and jobs are only two of the criteria that you can provide that allows you to lower your tax bill and keep more money in your pocket!
Every state and county may be a little different, but there are tax incentives available to you as a real estate investor and property owner than you might know.
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How Your Lender Pays Your Property Taxes
The good news is that having your lender pay your property taxes is easy and straight forward. You probably wont even notice them doing it. To pay your property taxes, your lender estimates your annual property tax payment. The estimate is based on previous years property taxes, your homes most recent assessment, and an extra percentage to account for property assessment fluctuations and tax hikes.
Your lender will then take this estimate and divide it by the number of mortgage payments youll make in a year. It will collect that amount on top of your monthly mortgage payment. For example, if your lender estimates youll pay $2,500 in property taxes in a year, and you make your mortgage payments monthly, your lender will collect an extra;$208.33 each month.
When the money is collected, your lender holds it in an escrow account until the property taxes are due. If there is extra left in the account after the property taxes are paid, your monthly payment in the next year will be revised to compensate.
Understand Your Tax Bill
If you feel you are paying too much, it’s important to know how your municipality reaches that figure on your bill. Sadly, many homeowners pay property taxes but never quite understand how they are calculated. It can be confusing and challenging, especially because there may be a disconnect between how two neighboring towns calculate their property taxes.
Property taxes are calculated using two very important figuresthe tax rate and the current market value of your property. The rate at which taxing authorities reset their tax rates is based on state lawsome change them annually, while others do so in different increments, such as once every five years. Municipalities set their tax ratesalso known as millage or mill ratebased on what they feel they need to pay for important services.
An assessor, hired by the local government, estimates the market value of your propertywhich includes both the land and structureafter which you receive an assessment.
The assessor may come to your property, but in some cases, an assessor may complete property assessments remotely using software with updated tax rolls. Your local tax collector’s office sends you your property tax bill, which is based on this assessment.
In order to come up with your tax bill, your tax office multiplies the tax rate by the assessed value. So, if your property is assessed at $300,000 and your local government sets your tax rate at 2.5%, your annual tax bill will be $7,500.
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How Are School Taxes Calculated
School taxes are a necessary evil when it comes to owning a home or business. Homeowners have to deal with these taxes when paying their mortgage or living in their homes to help schools be built, managed and staffed. Considerations to make when determining school taxes include assessments and tax rates.
An Iphone As A Medical Expense
After suffering severe brain injuries stemming from a car accident, one taxpayer was actually prescribed an iPhone by her doctor. The phone allowed her to be more independent — it reminded her of things she needed to do and answered questions for her via Siri — so it was able to qualify as a medical expense, CNN Money reported.
As of 2020, the IRS allows taxpayers who itemize their deductions to deduct their total qualified unreimbursed medical expenses that exceed 10% of their adjusted gross income.
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Deduct Child Care Expenses
Childcare has quickly become one of the largest household expenses for young families. Thankfully, the CRA allows you to claim these expenses as a tax deduction on your tax return.
In most cases, childcare expenses must be claimed by the parent with the lower net income.
Basic limit for childcare expenses
- Eligible children born in 2012 or later = $8,000
- Number of eligible children born in 2002 to 2011 = $5,000
Pro tip: In addition to the usual fees from daycares or in-home providers, most overnight camps and summer day camps are also eligible for the childcare deduction.
% Disabled Veterans Homestead Exemption
You can qualify for this exemption on your homestead if you have a disability rating of 100% or individual unemployability from the Veterans’ Administration and you receive 100% disability payments from the VA. Your disability must be service connected. If you qualify, 100% of the value of your residence homestead will be exempted.
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Mailing And Due Dates
Each year after July 1st, the Comité de gestion mails out school tax bills for all taxable properties within the territories served by the school service centres and school boards on the Island of Montreal.
School tax bills of $300 or more are payable in two instalments.
The first instalment is payable on the 31st day following the mailing of the school tax bill, and the second instalment is payable on the 121st day following the mailing of the school tax bill.
|First instalment Monday, August 2nd, 2021Second instalment Monday, November 1st, 2021|
The school tax bill includes two remittance stubs, one for each instalment.
No reminder notice is sent for the second instalment.
We recommend mailing two post-dated cheques with the two remittance stubs in the same envelope. The website of your financial institution can also be programmed to make your instalment payments at the appropriate times. Interest is charged if the instalments are not paid by their respective due dates.
Supplemental school tax bills may be mailed out during the year following the issuing of assessment certificates and are payable on the due date printed on the bills.
She Is Tired Of Other Seniors Griping About School Taxes
I agree with a previous letter writer about being exhausted over seniors complaints regarding paying school taxes. An educated society benefits all of us, and we all should embrace educating children.
I also agree that seniors could be helping our youth by educating them about climate change and caring for our resources. Having a meaningful life is more important then stuff.”
Signed, a senior citizen.
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Even Drug Dealers Get Tax Deductions
Drug dealer Jeffrey Edmondson could teach classes on how to avoid paying taxes legally. He got himself in trouble with the law after being busted and charged with drug trafficking. Eager to get even more out of the dealer, the IRS audited him for $17,000 in back taxes after he failed to declare his income from drug dealing.
Edmondson decided the government wouldn’t have the last laugh. Leading up to his trial, he filed a tax return that listed his taxable net income along with a list of business deductions. He left his occupation blank, of course. After looking at his return, the IRS turned down his deductions. But Edmondson was not ready to give up.
He took the matter to Tax Court, where he claimed he’d established a home business and wanted to claim home-office deductions — including drugs. Surprisingly, the judge agreed to allow him to deduct his expenses, which included a $50 scale, more than 19,000 miles in business mileage on his car and 100 pounds of marijuana.
Lost Your W-2? Hereâs What To Do
Taxing Retirement Income Punishes Those Who Saved
So our great leaders want to punish the people who made sacrifices throughout their life to have money put away for retirement.
Now they want to tax that money. Well what about those that, for whatever reason, never put anything away? They walk away without paying no tax while I still do.
Ill move out of Pennsylvania when I retire first.
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How To Get The Best Value Out Of Private Schools
1. Start saving early
Sending a child to a private day school from the ages of 13 to 18 costs on average £71,445. By planning early and investing your money rather than leaving it in a low-interest cash Isa, you could hit this target by putting away just £300 a month.
Wealth manager Brewin Dolphin calculated that a family investing this amount every month from birth until their child starts secondary school would need to be achieving returns of just 4pc, a reasonable expectation even for a newbie investor.;
2. Make sure your saving is tax efficient
Whether youre putting away money as cash or investing, make sure you also make the best use of wrappers such as Isas which ease the burden of saving further through tax relief, said John Fletcher of Brewin Dolphin.
The tax-free Isa allowance for this year is £20,000 per person, which means a couple can put away £40,000. Parents who open a Junior Isa for their child can save an additional £9,000 a year tax-free per child.
Another tax-efficient way of saving, particularly for higher-rate taxpayers, could be to draw some of your pension early. Once you hit 55 you can take up to a quarter of the money as a lump sum.
3. Check what bursaries and scholarships are available
In 2018 almost 6,000 private school children had their places fully funded by bursaries, according to the Independent Schools Council. Details of grants and scholarships will be available on the schools websites.
4. See if other reductions are available
Bill To Exempt School Taxes For People 65 And Over A Slippery Slope To Chaos
The Geneva Conventions prohibit violence to life and person, in particular murder of all kinds, mutilation, cruel treatment and torture, taking of hostages and outrages upon personal dignity, in particular humiliating and degrading treatment.
So how does the Legislature get away with it?
Those elected officials have been causing eyeballs to bleed in local school districts for years now, and the party is set to rock on when the next legislative session starts next month.
First, the chair of the Senate education committee without the first clue of how much money districts would lose filed a bill to let residents 65 and over who have lived in their homesteaded house for 25 years claim an exemption to stop paying school property taxes.
Never mind that Florida already shamefully ranks 44th in per-pupil spending across the nation.
Thats irrelevant, said Senate Education Committee Chairman Manny Diaz, a South Florida Republican who now says that he plans to amend the bill so that the proposed homestead exemption covers only new taxes rather than existing ones.
After that little legislative bombshell, Gov. Ron DeSantis announced earlier this week that Florida would do away with Common Core, which set state standards for math and language arts.
But, we digress.
Later, Diaz said the updated version of his proposed homestead exemption for senior homeowners should appear soon.
Except that its not.
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Bribes Can Be A Business Write
Shady businessman William D. Zack ran a fake invoicing scheme that landed him in hot water with the IRS. The U.S. government sued him for unpaid taxes on unreported income totaling $311,601 for the tax years 1985 and 1986. But Zack argued that his total unreported income for those years should be reduced by $90,286 — money that went toward bribes over those years, stating that he made the bribes in order to obtain work for his business entities. Surprisingly, the court ruled in his favor, and the total unreported income he had to pay back taxes on was reduced.
Deducting The Homestead Exemption
A homestead tax or property tax is typically applied to homes based on the assessed value of the property by the local government tax assessor’s office. The homestead tax can be a percentage of the property’s value or a fixed amount.
The homestead tax exemption may offer ongoing reductions in property taxes depending on local state laws. These exemptions can help surviving spouses remain in their homes after their income has been reduced by the death of their partner.
Homestead tax exemptions usually offer a fixed discount on taxes, such as exempting the first $50,000 of the;assessed;value,;with the remainder taxed at the normal rate. For example, using a $50,000 homestead exemption,;a;home valued at $150,000 would be taxed on only $100,000 of assessed value, and a home valued at $75,000 would then be taxed on only $25,000.
Fixed homestead;tax exemptions essentially turn a property tax into a;progressive tax that is more favorable to those with more modest homes. In some areas, the exemption is paid for with a local or state ;sales tax.
To qualify for homestead exemption, homeowners must occupy the property as their permanent residence. Homestead exemption cannot be claimed for any other property that may be located elsewhere.
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Allow The Assessor Access To Your Home
You do not have to allow the tax assessor into your home. However, what typically happens if you do not permit access to the interior is that the assessor assumes you’ve made certain improvements such as added fixtures or made exorbitant refurbishments. This could result in a bigger tax bill.
Many towns have a policy that if the homeowner does not grant full access to the property, the assessor will automatically assign the highest assessed value possible for that type of propertyfair or not. At this point, it’s up to the individual to dispute the evaluation with the town, which will be nearly impossible unless you grant access to the interior.
The lesson: Allow the assessor to access your home. If you took out permits for all improvements you’ve made to the property, you should be fine.
Who Is Eligible For A Homestead Exemption
Eligibility for the homestead exemption varies by state. Typically, you will be eligible if your income is low, you are a senior, you have a disability, or you are a veteran. Exemptions can be combined if you fall into more than one category. There may also be a limit on the value of a home that can qualify for an exemption. Check with your local tax assessor.
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Schools Out: What If Parents Take The Tax Money And Run
We moved last yearfrom Florida, a state with relatively poor public schools, to a strong school district in Michigan. Our property taxes are higher than the national and even county average, but like many families with school-age children, we are willing to pay them. We support our local public school district.
First, some background: Property taxes arent the only source of support for the common good of public education. Property taxes vary widely and school districts with low tax basesoften home to low-income, minority familieswould have far fewer resources without states hefty contributions.
States allocate funding to make sure that per-pupil-spending across school districts is somewhat equalized, though some states are more equal than others. Some, like New Jersey, shift so much money to some high poverty districts they are some of the best funded within the state. But balancing school spending often isnt enough to level educational outcomes. Student performance still varies widely, leaving students in poor districts at a profound disadvantage.
Consider Wisconsin. The GOP legislature has a likely-to-pass plan that would allocate a fixed amount of dollars-per-student to low-income children. They could use the vouchers to enroll in any schoolpublic or privatethat can accommodate them. Theyd have lots of choice, but in just one budget cycle would walk away with up to $48 million that would have otherwise gone to public schools.