As the March 1st deadline to apply for property assessment exemptions looms, Senior citizens are left scrambling to prove that their incomes are low enough to qualify. Seniors of New York qualify for a 50% property tax break if the exemptions apply to them.
Documentation Dilemma
People are lining up at town hall with binders and folders filled with paper trying to prove that they qualify. Many are complaining of assessors sending them home two or three times in some instances, demanding they come back with further documentation for proof, such as a tax return from a specific year, IRA statements, and a long list of other documents have been demanded.
New York State has been facing a lot of criticism for setting up these property tax break programs that are causing seniors more stress than helping them. Most people are unaware that these exemptions are being offered, and when they find out it is being offered they are unable to apply without assistance.
The system is currently very frustrating. The exemption comes with a list of approximately 14 different documents asking for proof of identity and income. The limitations on who qualifies also vary in each municipality, and benefits are the same in some towns and different in others.
Be Prepared
Town assessors are the ones handling the senior exemption, and they simply do not have access to the information. This is causing senior citizens to have to wait in lines at Town Hall Meetings, and prove that their incomes qualify.
The Low-income senior exemption should be applied for at your town assessor’s office no later than March 1st. To qualify the person must be at 65 years old, and own a home that is their primary residence. The income threshold varies depending on the jurisdiction.
Bring the following documents to the assessor’s office:
- Federal income tax return for 2020.
- Proof of residency (driver’s license or state-issued identification card)
- Copy of trust agreement if property is owned by a trust.
- Any of the following that apply, even if you bring your tax returns:
- All 1099s for Social Security or Railroad Retirement benefits
- All 1099s for pensions and annuities
- All 1099s for IRAs
- All IRA year-end statements showing interest, dividends and realized capital gains as of 12/31/20.
- W-2 for salary and wages
- Net earnings from farming, rentals, business or professional
- Income from estates or trusts
- Gains from sales and exchanges
- Proof of income from any other source, including unemployment insurance, veterans’ disability, workers’ compensation, alimony, and gambling winnings.Proof of unreimbursed medical expenses (these can be used to reduce your income in some towns)
Although finding and presenting all these documents can be confusing and frustrating, this exemption can still be taken advantage of. Consult with your accountant to help you find the documents needed and give you advice on whether this exemption works for you, or a loved one.
Want to find out more about this exemption? Feel free to give us a call at 516-541-6549. And don’t forget to visit our website for more news updates!