2013 W4 TAX FORM NJ
W4 Form (Second Page): Is the Line 4 (Number of allowances that are claimed) the same as Line H (page 1) or Line A and B added together?
I am using the NJ-w4 2007 form.
No links please! I can’t goto any site I want because the Internet is restricted
Answer by Arthur R
Form NJ-W4 doesn’t have any instructions for what is to be put on line 4. They seem to recommend that you estimate your NJ income tax, and adjust line 4 of the NJ-W4 appropriately.
Every American who is working is under an obligation to pay tax. Employees have their taxes deducted by their employers from the paychecks. New employees fill out the W4 form at the onset of the job indicating their social security number as well as any exceptions that they will be taking. The form acts as a guide to the employers as to the amounts that they should deduct from the employee’s paycheck. It is important that you read and understand the W4 questions before filling the form. One thing that you have to acknowledge is that you need to make calculations as to the allowances you need to claim. The following guidelines should be of help in filling out the form:
• Section 1 incorporates the worksheet for personal allowances. W4 questions in this section will be in the will mainly be concerning your allowances as well as whether you have dependants or you are independent. Questions pertaining to child tax credit or dependent care expenses will be asked. It would be important that you carefully read the questions.
• The next section will incorporate personal information. You need to enter your name, home address, social security number, marital status, state, zip code as well as city in the steps numbered 1 to 4.
• In step five, you are supposed to fill W4 questions pertaining to the total number of allowances that you will be claiming. One thing you have to note however is that it should be the sum total of the section I steps A to G.
• In step six, you will find W4 questions pertaining to the amounts that you would want withheld pertaining to every section.
This however is not mandatory and therefore if you would not like to have amounts in any section withheld, you should not write anything in this step. Just leave it blank.
• You should indicate Exempt in the next step depending on your qualifications. This would be the case if the previous year you had expectations pertaining to refunds of withheld federal income tax due to no tax liability. However, you must be expecting refunds in the current year as well to qualify as exempt.
• After you have filled out the W4 questions, it would be important that you sign the form beside the Employee’s Signature as well as indicate the current date. Note that the form will be rendered invalid if it does not have your signature.
• If the form is to be sent to the Internal Revenue Service, you would have to fill steps 8 through 10. The employer will also have to fill in their address and name as well as their identification number.
It would be important to the multiple jobs worksheet if you are in possession of more two or more jobs. Married people whose combined income exceeds 40000 pounds should also fill this section. Note that the number you entered in line H will also be entered on page one.
One thing that you have to note is the essence of being honest and accurate when completing the W4 questions. It would also be important that you do not leave any mandatory questions unanswered.
April 15th. Infamous for its connotation of the “deadline,” this day has long been associated with taxes. But tax payers be aware: there’s another date that everyone, especially homeowners eager to save money on taxes, should remain on the lookout for: April 1st, which marks the deadline for filing a New Jersey property tax appeal.
With the dark cloud comes a silver lining: the meager economy and the real estate collapse of 2008 may have forced the decline of property values in the state of New Jersey, but it also produced one benefit— a homeowner’s ability to appeal his/her taxes due to over-assessed property value. The first step towards some financial relief through a tax appeal: understanding the process.
Step 1: Understand How Your Property Tax is Determined
You know that every quarter, the city sends you a bill prompting you to pay your share of property taxes. The question is, do you know how they come up with that number? Your town’s taxing authority uses the town’s budget— which includes funding for the service departments, schools, the police department, town maintenance, etc.— to determine how much money the city will need, and through that amount, determine your tax rate. That rate, multiplied by the value at which your property is assessed, produces your tax bill. Hence why your home’s value plays such a vital role in the difference between decent and outrageous when it comes to tax affordability.
Step 2: Make Sure It’s Worth It
The NJ tax appeal process comes with some costs— filing fees, assessment charges, professional consultation fares, etc.— so it’d be a good idea to first make sure the savings is worth the effort.
As a preliminary, and unofficial, screening, you can search online for a free tax appeal calculator, which usually applies the current amount of taxes you pay and what you believe the value of your house to be in order to provide you with an estimated price of what the city believes your house is worth. It then employs these numbers, differentiating between the taxes you pay based on the city’s assessment of your house versus what you would pay if taxes were based on the home’s true value, to calculate the amount of money you could be saving should you attempt and win an appeal. For those of you who have trouble finding a calculator that is applicable statewide, try this NJ tax appeal calculator: www.nj-tax-appeal.com
Step 3: Make Sure You Qualify
The NJ tax appeal process has its own set of requirements that all appellants must fulfill before they even consider filing— make sure you meet them all to avoid wasting your time and money.
- All property taxes up to Quarter 1 of 2013 must be paid in full.
- Complete the Chapter 91 form, if requested, and return to the city within 45 days of receipt. A Chapter 91 enables assessors to request a report on income producing properties, providing them with access to financial information that will help them make the right assessment on a property.
- Your basis for appealing your current assessment is due to misrepresentation of one of the following standards:
1. True Market Value, which mandates that all assessments are 100% of what was considered to be True Market Value as of October of the previous year, which in this case would be 2013.
2. Common Level Range, which takes into consideration what happens to home valuations after external factors, like recession, inflation, and depreciation, cause an increase or decrease in rates. Assessments that are not modified annually may deviate from 100% of True Market Value due to these factors. Typically, if your home value falls outside a range of 15% from True Market Value, you have a very good case for appeal. A tax calculator, such as the one mentioned, will tell you this right away.
Step 4: Move Forward
Once you determine that it would be a good move, file for the tax appeal using an A-1 form no later than April 1st. Make sure you have valid reason for the appeal on hand, as made evidence through a formal third party assessment, or through comparables of the value of properties within your neighborhood. Then, take the steps necessary to ensure that you are well-prepared to present you case, as the assessor is always considered right until proven wrong. This is where hiring an experienced tax appeal professional to support your case may be well worth the cost in the end, it can pay for itself many times over through the money you’ll save in taxes.
The New Jersey Legislature adopted a formula called Chapter 123 to test the fairness of an assessment. When compared to the property’s True Market Value, the current assessment must fit within the Common Level Range— should it exceed the range, the assessment must be reduced to common level.
Let’s say the Common Level Range falls within 70% -90% of True Market Value. Your home’s True Value is $ 100,000, and it is currently assessed at $ 95,000. Because $ 95,000 is 95% of $ 100,000 ($ 95,000 ÷ $ 100,000), it falls past the maximum percentage within the Common Level Range and must therefore, be reduced.
Remember, the formula works both ways. So let’s say the Common Level Range falls within 70%-90% of True Market Value, and your home’s True Value is $ 100,000. If it’s currently assessed at $ 65,000, then it is at 65% of True Value ($ 65,000÷ $ 100,000), and therefore, falls below the Common Level Range. The result: your assessment would be increased.
Step 5: Show Up to the Hearing
Once you file for an appeal, a hearing before the County Tax Board is scheduled. As an individual taxpayer of NJ, you can represent yourself— business entities, with the exception of sole proprietorships, are required to have attorney representation.
If you’re relying on a professional assessment to support your case, a copy of the appraisal report must be provided to the assessor, as well as each County Tax Board member at least seven days prior to the hearing. The appraiser who completed the report must also be available to serve as an expert witness during the hearing. Ifyou choose to utilize comparables to prove your case, the assessor, and all members of the Board, must be supplied with copies of the comparables seven days prior to the hearing, as well.
NJ tax appeal hearings are typically held within three months of the filing deadline. Should you succeed in proving that your current assessment is erroneous, unreasonable, excessive, or discriminatory, and should you be effective in sustaining credible evidence to back your allegations, then you’re well on your way to some much-deserved tax relief.
The preceding material has been provided to you by NJ Tax Appeal. Jeffrey Pacailler is the head of the Valuation Division at RER LLC, one of New Jersey’s premier real estate investment companies. He frequently consults for real estate investors on valuation and strategy in New Jersey real estate. Visit www.nj-tax-appeal.com to download your free tax appeal calculator today.
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