Mayor's Weekly Column

From the Desk of Mayor Hall

File Your Tax Returns Now, Get Your Refund Early and Avoid Penalties

Spring is just around the corner and so is tax season. Tax returns for 2010 must be filed by Monday, April 18. If you haven’t filed already, I urge you to do so now. By filing early you can avoid the stresses that result for many who wait to file and it may result in an early refund to those who are due money back.

Waiting until the last minute, on the other hand, may increase your risk of making an error and incurring a late filing or payment penalty. You may also overlook potential sources of tax savings.

How should you go about filing? According to the IRS, nearly 99 million taxpayers (a record high) filed their returns electronically last year. IRS e-file is the safest, fastest and easiest way to file a tax return. If you are due a refund, the waiting time for e-filers is half that of paper filers – as few as 10 days if you choose to receive your refund through direct deposit. Additionally, New York is one of the 37 states that allow taxpayers to e-file their federal and state tax returns in one transmission to the IRS. Using tax software on your personal computer also dramatically reduces mistakes that are commonly made on tax returns prepared on paper. By logging on to www.irs.gov, you can find out if you are eligible for Free File, which offers free tax preparation and filing for taxpayers with a 2010 adjusted gross income (AGI) of $58,000 or less. Approximately 70 percent of all taxpayers will be eligible to use Free File for the 2011 filing season.

The key to minimizing what you owe and maximizing money you are entitled to in a refund, is to make every possible deduction for which you are eligible. If your medical expenses exceed 7.5 percent of your AGI, for example, they are typically deductible. Other overlooked deductions include charitable donations; losses due to disaster or theft that amount to at least 10 percent of your adjusted gross income; gambling losses; and business, investment, educational and job-search expenses.

If you opt to have your taxes prepared by a professional, beware of offers that promise a near-instantaneous refund. Under my administration, the Village passed a law aimed at protecting residents from deceptive tax preparation practices. The law requires that residents be provided full disclosure regarding Refund Anticipation Loans (RAL) -- short-term loans with often exorbitant interest rates that are aggressively marketed to low-income families. The Village law goes further than a similar law passed by Nassau County, in that it mandates Village tax preparers to advertise fees in both English and Spanish. Tax preparers who fail to comply will face stiff fines.

Paying taxes, though intimidating for some, doesn’t have to be. The measures we have put in place are meant to make it as convenient and supportive of residents as possible. Equally important, paying taxes ensures that the vital federal, state and local government services on which we all depend are delivered in an efficient manner. In this way each and every tax payer helps maintain the quality of life and overall services in our community. If you have any questions about your return, please visit www.irs.gov, or call its help number at (800) 829-1040.

Our hearts go out to Japan …

As we here in the Village continue to work toward improving the quality of life for all residents, the Board of Trustees and I, on behalf of the Village, extend our prayers and support to the citizens of Japan during this difficult time. There are numerous reputable aid organizations that are providing assistance to the Japanese communities affected by the devastating March 11 earthquake. To learn more, or to offer a donation, please contact the Red Cross, Salvation Army or UNICEF, or do a search for “Japan Earthquake Relief” on the web.

To stay on top of what’s happening in the Village, please join our electronic mailing list by sending your name and email address to Mayor@villageofhempsteadny.gov, and listen to the “Hempstead Happening” radio show every Wednesday at 4:15 p.m. on WTHE-AM (1520).

Sincerely,

Wayne

Wayne J. Hall Sr.
Mayor of the Incorporated Village of Hempstead

 

 

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