Hotline had the answers
The Daily News is Tax HQ!
As the tax deadline approaches, expert advice is key — and for crowds of New Yorkers the place to get it was last week at the Daily News Tax Hotline.
Over three days more than 1,000 people flocked to the News’ annual tax-fest. They were treated to free guidance from an all-star panel of 35 CPAS from the New York State Society of Certified Public Accountants.
“I think it’s wonderful, especially for older people,” said a grateful Virginia Robinson, an 83-year-old retiree from Harlem. “I always file my taxes myself. I will be able to do it again this year.”
Willi Hairston, a 74-year-old from Queens, called in to ask, “if a person has been incarcerated for 19 years and receives a pension, does he have to file taxes for the years he was incarcerated?”
“Yes,” responded Avril George-Robinson, a CPA and accounting professor at Medgar Evers College. “Regardless of your situation, you are required to report retirement income. See a tax accountant in your neighborhood.”
While the economy is improving, money woes remained a common theme.
Thomas Guardino, a 60-yearold computer analyst from Staten Island, said he had taken money out of his 401(k) to pay his bills. Now he owes a lot in taxes.
“I have to pay $27,000 in federal taxes and $11,000 to the state. I don’t have that type of money,” Guardino said. “Is there any way it can be reduced? How far can I stretch out the payments?”
“You need an offer in compromise because you cannot afford to pay the tax liability,” said Scott Cheslowitz of Rothenberg & Peters. “It is not so easy to get, but you must try. There is an installment plan.”
An Nydailynews.com reader named Stuart logged on to a live Web chat conducted by Barry Picker of Picker & Auerbach, to ask about discharged debt.
“I filed for Chapter 7 bankruptcy in late 2009 and it was finalized and approved in 2010,” Stuart said.
Was he responsible for paying taxes on the dismissed debt?
“Cancelled debt is income, but there are exceptions,” Picker responded. “You may want to consult a professional.”
Louis Mascolo, a 70-year-old retired mechanic from Staten Island, said his son has no income.
“Does he qualify for the Earned Income Tax Credit?”
“The answer is no,” said Joseph Nacmias of Mcgladrey. “He qualifies for nothing. The Earned Income Tax Credit is for someone with low income, not someone with no income.”
Janice Finley, a 66-year old retired U.S. Postal worker from the Bronx, wanted to know how far back the IRS will look if you haven’t filed a return in years.
“They can go back forever,” said Jeffrey Gold of L.M. Cohen & Co. “But the federal and state governments each have a voluntary disclosure agreement program whereby if you voluntarily enter the system they will limit the look back.”
Many callers wanted to know whether they were required to file a tax return.
“I’m getting a lot of questions from people who collect Social Security and have a little bit of other income asking: ‘Do I have to file?’” Nacmias said.
“In most cases they don’t. When the other income is small, the Social Security is tax free. But if the other income is significant, then 85% of Social Security becomes taxable.”