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AARP Foundation Tax-AideNew This Year - Appointments Will Be RequiredAARP Foundation Tax-Aide will again be providing tax preparation services by appointment only at The Manchester Senior Center beginning Wednesday, February 1st through Friday April 14th.Please note, beginning this season all clients will need an APPOINTMENT in order to receive tax preparation services. Appointments will be available Mon, Tues, Wed & Fri between 1pm & 3pm and can be made beginning the week of January 9th by calling (860)647-6024.Clients must bring a photo ID(s), Social Security card(s) (or SS statement with SS number on it). ?Please bring a copy of last year’s federal & state tax returns since no 2015 information will carry forward due to a new software program. ?We would like to remind our clients to please come prepared (tax documents should be removed from their envelopes and if you intend to itemize, please group similar expenses together (doctors, prescriptions, charitable donations (cash/non-cash), home mortgage interest, property taxes, job expenses, gambling losses)).If married, both husband and wife should be?present during an income tax counseling session.AARP Tax-Aide?is a program of the AARP Foundation, offered in conjunction with the?IRS. All volunteers are required to certify annually with the IRS.Volunteers Needed!!!The AARP Tax-Aide site at the Senior Center is looking for several volunteers for the 2017 Tax Season –(Mid-January through Mid-April)AARP is looking for Volunteer Appointment Setters. This involves making appointments, confirmation and other follow up phone calls as well as working with customers.? This position does NOT prepare taxes.? Call Human Services for more information and/or an application - ?(860) 647-3092?Come be a part of this terrific team that gives so much back tothe Manchester Community!!!!No Cost Income Tax Services Offered at the Senior CenterV.I.T.A. – Volunteer Income Tax AssistanceSponsored by the Town of Manchester – Operated through the Human Services DepartmentVITA serves the ELDERLY and OTHER CITIZENS with INCOME under $54,000You do not have to be a member of the Senior Center to Schedule an AppointmentBY APPOINTMENT ONLY – 647-3092Beginning January 28, 2017Thursday Evenings – 6:00 p.m. – 8:00 p.m.Saturdays – 9:00 a.m. – 4:00 p.m.V.I.T.A. SITE TAX PREPARATION ENDSFriday, April 13, 2017Town of ManchesterSenior Volunteer Tax Credit ProgramDo you have an annual income of not more than $35,200 unmarried or $42,900 as a married couple for the 2016 calendar year? Were you 65 years of age or older as of December 31st 2016? Do you own real property (home) in Manchester? Do you occupy the property as your principal residence? Are you able to work a minimum of 50 hours of volunteer service in Manchester between the time we qualify you for this program and May 13th? If you answered yes to these questions, you may qualify for the Senior Volunteer Tax Credit Program OR if you already qualify for the Town of Manchester’s Senior Property Tax Relief Program, you may provide documentation from the Manchester Office of Assessment and Collection and you may automatically qualify for the Senior Citizen Tax Credit Program. You must apply every year, even if you qualified last year. If you have additional questions or to find out more information please contact the Town of Manchester Human Services Department at (860) 647-3092 or email Lisa Fusco at lfusco@.SAVE THE DATE:Senior Taxpayer ProgramTuesday, February 21, 2017 at 2:00 p.m., there will be a presentation by John Rainaldi, Director of Assessment and Collection. John will discuss and review the tax assistance programs available to Manchester’s senior citizens. This will include information on the Senior Homeowner’s Program, the HELP Program, Veteran’s Programs and various other programs that are offered to qualifying seniors. Please leave your name and phone number at the senior center front office or call 860-647-3211 so that we may properly prepare for your visit. For more information on the Senior Taxpayer Program call 860-647-3011.IMPORTANT TAX INFORMATION (posted here since 9/2016)FOR 2016/2017 TAX SEASON – Please ReadAARP TAXAIDE PROGRAM – MANCHESTER, CTITEMIZE YOUR TAX DEDUCTIONS or TAKE THE STANDARD DEDUCTION?We will ask you if you want to itemize your deductions. What are these deductions? You don't pay income tax on all of your income; it is reduced before the tax is figured by your personal exemptions and your deductions. After you enter all your income on your tax return and any adjustments to your income (page 1 of the 1040 form), you will arrive at your Adjusted Gross Income (AGI). But you don't pay income tax on all of that. Everyone in the tax household (you, your spouse and each of your dependents) gets a personal exemption. For 2015 it is $4000 each (each year it has been increasing a bit). This is calculated near the top of page 2 of your form 1040. When you add these exemptions up, they are deducted from your AGI, to lower your tax. But you also reduce your AGI by either your Standard Deduction or your Itemized Deduction. This figure is your Taxable Income. The Standard Deduction varies from about $7000 to $13,000 depending on your filing status, your age (over 65 it is higher) and rises a bit each year. Whatever the amount, the standard deduction will be subtracted from your AGI before your tax is figured, unless you can come up with a list of deductible expenses that is larger. This is the process of itemizing. So either way, taking the standard deduction or itemizing, this deduction has a big impact on how much you will have to pay. The rest of this information sheet is about what you should be keeping track of if you want to itemize your deductible expenses.How do I know which one I should take? Is it worth the bother to itemize? Everyone can take the Standard Deduction, and you should only bother to calculate the Itemized Deduction if it has a chance of being bigger than the Standard Deduction, so it will make your tax bill even lower. It will be a bit tedious to calculate your Itemized Deduction, so you should do a quick estimate first:Medical: Do you have very large out-of-pocket medical expenses, including health insurance you paid for? Only the portion that is more than 10% (7.5% if over 65) of your AGI will count. Note that depending on your income, not all social security will be counted in your AGI (there is a worksheet to determine this)Do you have a house or condo? Your mortgage interest, mortgage insurance, and local real property tax (on your house, car, trailer, boat or airplane) are deductible. Fees to obtain a mortgage (points) are also deductible.Do you have large contributions? You can include non-cash household goods contributions but you will need to justify the value you claim. If they exceed $500 they are out of our scope, and we cannot do your return with such an item. You will need to go somewhere else & fill out additional forms to claim these items.These are the 3 key items and if the plus investment fees you paid don't exceed the Standard Deduction you need not bother to calculate the Itemized Deduction. 1) If you are filing as Single or Married Filing Separately you will need to exceed about $7500 by itemizing to exceed the standard deduction. 2) If you file as Head of Household you need to exceed $11,000 3) If you are filing Married Filing Jointly you will need to exceed about $14,000. If you are over 65 or blind these amounts will be even higher. If they are bigger, then see next page.IMPORTANT TAX INFORMATION FOR 2016/2017 TAX SEASON – Please Read(posted here since 9/2016)If you are able to get a bigger deduction by itemizing, we need these items listed and CATEGORIZED this way to make the calculations easy. Please prepare a list for us and keep items separated as shown so we can quickly complete your return: Medicala.Miles: Keep track of your trips to doctors, dentists, hospitals and pharmacies. There is a deduction for the miles you drive to these locations. This is easy to do if you list the distance to each and look at your calendar to count the trips.b.Medicare: The deductions from your Social Security payments for medical insurance will be included automatically if listed on your SSA-1099 form.c.Supplemental health insurance. You must tell us the annual cost you paid.d.Long term care insurance. What is the annual cost you paid?e.Other out-of-pocket medical costs not covered by insurance such as prescription copays, doctor and dentist copays, eyeglasses and hearing aids or other medical appliances or insulin you paid for.Mortgage expenses including interest and mortgage insurance, as well as fees (points) paid to get a mortgage in the first year. Your mortgage holder will tell you these amounts at the end of the year. Bring their form 1098. Personal Property Taxes on your house, car boat trailer or plane. Bring the form, but we can easily look this up if you don't have it. Only the payments made in the tax year can be included. If you pay in January of the current year it does not count for the prior tax year. Don't forget the State Income Tax you owed last year and paid with your Connecticut State tax return last year.Contributions can be another big item. If you do volunteer work and are not reimbursed for your travel, you can claim mileage, so keep track of that. For cash contributions you will need receipts. For non-cash contributions you will also need receipts, value estimates, and if the total exceeds $500, we cannot do your return. You will need to fill out extra forms, and you will need to justify what you paid for the items and when, and how you valued the contributions (Fair Market Value of 1/3 of their new cost is a common way). Note that you will have to do this; the charity will just give you a blank receipt. You are responsible for the accuracy of these figures.Did you have any job-hunting costs, fees from financial agents, or special job clothing or equipment? They can be deducted. Financial fees can be quite large!TAX TIP: Are you over 70.5 years and required to take minimum withdrawals from your IRA or 401k retirement program? IF SO, your contributions will lower your tax MORE if you direct your financial agent to send your contribution from your retirement plan Required Minimum Distribution directly to the charity you chose. They then become Qualified Charitable Contributions (QCDs) and directly reduce your AGI before exemptions and deductions are subtracted. This lowers federal AND state tax, as well as taxable social security, and is more beneficial than including them as itemized deductions.TAX TIP: Are you under age 70.5, still working and still able to make tax deferred contributions to and IRA? You can lower your AGI by transferring money from savings to your retirement plan, but you will have to start to take this income when you reach age 70.5 ................
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