Concerned about the economy and eager for help, taxpayers flooded the Daily News Tax Hotline Tuesday as the paper kicked off its annual free service.
Phones rang nonstop, a Web chat attracted scores of questions and e-mails filled an inbox as a team from the New York State Society of Certified Public Accountants fielded questions for free.
The Tax Hotline continues Wednesday and Thursday from 10a.m. to 4 p.m. You can call (212)210-2044, visit nydailynews.com/money or e-mail tax@nydailynews.com.
More than 1,000 people are expected to get help from the Tax Hotline.
“Because of the economy, these callers want to maximize every dollar they can,” said David Sands, a partner at accounting firm Buchbinder Tunick.
“People are looking to this hotline for help,” added Amy Vega, manager of tax services at Grant Thornton, as she took a breath before answering another call yesterday. “They were thankful.”
Among the hot topics were economic stimulus checks, the taxability of Social Security benefits, properly handling the sale of a home at a loss or investments at a loss, and how to declare gambling winnings and losses.
Jo-Ann Marks, a 42-year-old city Public School teacher from the Wakefield, the Bronx, called in regarding the sale of a home she owned in Boca Raton, Fla., in which the proceeds fell short of what she owed on the mortgage.
“Do I have to pay taxes on the cancellation of debt?” Marks asked.
“Yes,” responded CPA John Lieberman. “You have to pay tax because it was not your primary residence.”
Edna Johnson, an 84-year-old retiree from Lakewood, N.J., called in and said she won $5,000 playing the slots but had lost $3,000 another time.
“Can I deduct the losses?” Johnson asked.
CPA Marc Albaum told her that the only way she can include the losses is if she itemizes her deductions. Johnson was not happy. “We haven’t done that in years,” she said.
While tax panelists strived to give taxpayers the best advice, “Unfortunately, we do not guarantee you will like the answer,” said Barry Picker, a CPA at Picker Weinberg & Auerbach.
A number of taxpayers, particularly seniors, wanted to know whether they’re required to file a return. And with money tight, many wanted more info about medical expense deductions.
Scott Cheslowitz, a partner at Rothenberg & Peters, fielded several calls from people who hadn’t filed tax returns for several years.
“Is it too late?” they asked. “The answer is no,” he said, adding, “You will potentially face interest and penalties if you have a tax liability.”
Asked why he takes the time to offer free advice just weeks before his busiest work season of the year, Cheslowitz said: “I want to give something back. If we can help, why not?”
The accountants who will be available on the Daily News Tax Hotline can answer your general questions about tax matters, but those answers are not a substitute for individualized advice from a professional who is hired by you and has full knowledge of your financial affairs. The Daily News makes no representations or warranties of any kind as to information given by the Tax Hotline accountants, and under no circumstances will it or the accountants be liable to any caller or other person for damages of any nature arising in any way from the use of such information.
