MIDDLESEX COUNTY — Middlesex County Clerk Elaine M. Flynn encouraged homeowners who were part of a home foreclosure between Jan. 1, 2009 and Dec. 31, 2010 to take advantage of a new review program being offered by the federal government.

The Independent Foreclosure Review program is being offered through the Federal Office of the Comptroller of the Currency (OCC). Homeowners who were part of a foreclosure during that time period are eligible to request an independent review of their foreclosure process.

If the review finds that financial injury occurred to the homeowner as a result of errors, misrepresentations or other deficiencies in the servicer’s foreclosure process, the homeowner may be eligible for compensation. Where a borrower suffered financial injury as a result of such practices, the consent orders require remediation to be provided.

“If you underwent a foreclosure in 2009 or 2010, I urge you to take advantage of this process,” Flynn said. “This review will help determine if you suffered undue financial injury due to errors or other problems during your home foreclosure process.”

Under enforcement actions taken by the OCC, the Federal Reserve and the Office of Thrift Supervision in April 2011, 14 large mortgage services were required to correct deficiencies in their servicing and foreclosure processes and to engage independent firms to conduct a multi-faceted independent review of foreclosure actions that occurred in 2009 and 2010.

“I would like to thank the County Clerk for bringing attention to this program and for looking out for the best interests of our residents,” said Middlesex County Freeholder Blanquita B. Valenti chair of the County’s Community Services Committee.

“This program will help determine instances where our residents may have been mislead or faced undue costs during an already difficult time,” said Middlesex County Freeholder Director Christopher D. Rafano. “Helping to spread the word about programs such as this, is another way we can serve our citizens.”

Nationally, more than 4 million letters were mailed to potentially eligible borrowers with request-for-review forms and instructions on how to complete and return them. If you did not receive a form in the mail, you can request a form by calling 1-888-952-9105, Monday through Friday from 8 a.m. to 10 p.m. and Saturday from 8 a.m. to 5 p.m. The form needs to be returned by April 30, 2012.

Flynn added: “You can begin the process today by completing a form and making sure to submit it by the April 30, 2012 deadline.”

For additional information and answers to basic questions about the review process, visit www.IndependentForeclosureReview.com.

The IRS has a new form taxpayers must use to report most capital gains and losses from transactions relating to investment property. In previous years, these transactions would have been reported on your IRS Schedule D or D-1, but for tax year 2011, use Form 8949, Sales and Other Dispositions of Capital Assets.

Here are eight important points about the new Form 8949 and IRS Schedule D, Capital Gains and Losses:

1. Short-term capital gains or losses (assets held for one year or less) are now reported on Part I of Form 8949.
2. Long-term capital gains or losses (assets held for more than one year) are now reported on Part II of Form 8949.

3. Fill out Form 8949 before you fill out line 1, 2, 3, 8, 9 or 10 of Schedule D.

4. Most property you own and use for personal purposes, pleasure or investment is a capital asset. Use Form 8949 to report the sale or exchange of a capital asset you are not reporting on another form or schedule (such as Form 6252 or 8824).

5. At the top of each Form 8949 you file, you’ll need to check box A, B or C, based on what is indicated in box 3 of the Form 1099-B or substitute statement.
   • Check box A if your broker reported the transaction to you and the basis of the securities sold also was reported to the IRS
   • Check box B if the transaction was reported to you but box 3 of the Form 1099-B is blank or your statement says the basis was not reported to the IRS.
   • Check box C for all other transactions.

6. If you have a lot of transactions, use as many Forms 8949 as necessary to report all of them, but make sure that each Form 8949 includes only the type of transactions described in the text for the box you checked (A, B or C).

7.  The reporting of certain transactions has changed. If you have to adjust your gain or loss, you may have to enter a code in column (b) and an adjustment in column (g). For details, see the 2011 Instructions for Schedule D (and Form 8949).

8. For 2011 transactions, Schedule D-1 is no longer in use. Form 8949 replaces it.

WASHINGTON, D.C. — Nearly 3.6 million people with Medicare saved $2.1 billion on their prescription drugs in 2011 thanks to the Affordable Care Act according to data issued by the Department of Health and Human Services (HHS).

“The Affordable Care Act is already saving money for millions of Americans with Medicare,” said HHS Secretary Kathleen Sebelius. “As we move forward, we will close the donut hole completely and save even more money for everyone with Medicare.”

The Affordable Care Act provides a 50 percent discount on brand-name prescription drugs and this year, a 14% discount on generics. Last year, it provided a seven percent discount on covered generic medications for people who hit the prescription drug coverage gap known as the donut hole last year, with 2,814,646 beneficiaries receiving $32.1 million in savings on generics.

In 2011, the 3.6 million Americans who hit the donut hole saved an average of $604 on the cost of their prescription drugs.

Data also show that women especially benefited from the law’s provision with 2.05 million women saving $1.2 billion on their prescription drugs.

By 2020, the donut hole will be closed completely. The report released this month by the Department of Health and Human Services finds that this provision and other features of the health reform law will generate substantial savings for people with Medicare. Typical Medicare beneficiaries will save an average of nearly $4,200 from 2011 to 2021. People with high prescription drug costs could save as much as $16,000.

TRENTON – New Jersey has joined a $25 billion joint state-federal settlement that resolves a national investigation into alleged foreclosure abuses, fraud and unacceptable business practices by the country’s five largest mortgage servicers, Attorney General Jeffrey S. Chiesa announced today.

The proposed settlement provides an estimated $762 million in direct relief to New Jersey homeowners and reforms mortgage loan servicing practices. U.S. Attorney General Eric Holder, U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan and a bipartisan group of state attorneys general announced the national settlement today in Washington, D.C.

The five settling mortgage servicers are Ally Financial, Bank of America, Citi, JP Morgan Chase and Wells Fargo.

“This settlement is important because it will bring much-needed relief to New Jersey borrowers, and significant reform to the mortgage servicing industry,” said Chiesa. “Through the changes required by this settlement, we are putting a stop to the conduct that has harmed borrowers in the past and contributed to the mortgage problems in our state and across the country.”

“Today’s announcement about the multi-state mortgage servicing settlement is a step forward for consumers as they work hard to recover from the last recession,” said Commissioner of Banking and Insurance Tom Considine. “It is also a key step for mortgage servicers as improved performance helps them turn the corner toward a healthier marketplace.”

Under the terms of the settlement, New Jersey and its citizens will benefit in several important ways:

· New Jersey borrowers will receive an estimated $660 million in benefits from loan term modifications and other direct relief.

· New Jersey borrowers who lost their home to foreclosure between January 1, 2008 and December 31, 2011, and suffered servicing abuse, will qualify for $12.5 million in cash payments.

· The value of refinanced loans to New Jersey borrowers who owe more on their mortgages than their homes are worth will be an estimated $89.5 million.

· The state will also receive a direct payment of $75.5 million, which will help pay for various State housing programs.

The joint, state-federal settlement is the result of a massive civil law enforcement investigation and initiative that includes state attorneys general and state banking regulators across the country, and nearly a dozen federal agencies.

The New Jersey Division of Law’s Affirmative Civil Enforcement Group and the Division of Consumer Affairs, both part of the Attorney General’s office, conducted a joint investigation reviewing consumer complaints, court filings and other relevant documents. The Attorney General’s office also conducted interviews with New Jersey borrowers affected by the servicers’ conduct. The problems identified during New Jersey’s investigation mirrored those encountered in other states.

With the backing of a federal court order and the oversight of an independent monitor, the settlement is designed to prevent such conduct in the future.

Under the terms of the settlement, the five servicers have agreed to pay $25 billion under a joint state-federal settlement structure. Nationally:

· Servicers commit a minimum of $17 billion directly to borrowers through a series of national homeowner relief effort options, including principal reduction. Based upon the structure of the settlement, servicers will actually provide up to an estimated $32 billion in direct homeowner relief.

· Servicers commit $3 billion to a mortgage refinancing program for borrowers who are current, but owe more than their home is currently worth.

· Servicers pay $5 billion to the states and federal government ($4.25 billion to the states and $750 million to the federal government). The states’ share includes funding for payments to borrowers harmed by the servicers’ actions.

· Homeowners receive comprehensive protections from new mortgage loan servicing and foreclosure standards.

· An independent monitor will ensure mortgage servicer compliance.

· Government can pursue civil claims outside the scope of the settlement, including securities cases and any criminal case; borrowers and investors can pursue individual, institutional or class action cases regardless of the settlement.

In deciding to join the settlement, Chiesa explained that the state factored in the five servicers’ cooperation during the investigation and their readiness to implement significant reforms concerning business practices and mortgage loan servicing standards.

“This settlement addresses breakdowns in the mortgage servicing industry, and allows us to pursue other mortgage-related misconduct,” said Chiesa.

“While the settlement includes significant relief for homeowners, it also puts in place new protections for homeowners in the form of reformed mortgage servicing standards,” Chiesa added. “That’s not something we’d see if we simply won a money judgment after trial.”

The final agreement, implemented through a consent judgment, will be filed in U.S. District Court in Washington, D.C., and will have the authority of a court order.

Due to the complexity of both the mortgage market generally and this settlement in particular, which will span a three-year period, participating mortgage servicers will in some cases contact borrowers directly regarding loan modification options. However, borrowers are urged to contact their mortgage servicers to obtain more information about specific loan modification programs and whether they qualify under terms of the settlement.

For more information on the proposed settlement visit: www.NationalMortgageSettlement.com

Borrowers who wish to inquire about the settlement may also contact their mortgage servicer as follows:

Ally: 1-800-766-4622 | Bank of America: 1-877-488-7814 | Citi: 1-866-272-4749 | JP Morgan Chase: 1-866-372-6901 | Wells Fargo: 1-800-288-3212

Before you file your 2011 federal income tax return in 2012, you should be aware of a few important tax changes that took effect in 2011. Check www.IRS.gov before you file for updates on any new legislation that may affect your tax return. 

Due date of return. File your federal tax return by April 17, 2012. The due date is April 17, instead of April 15, because April 15 is a Sunday and April 16 is the Emancipation Day holiday in the District of Columbia.

New forms. In most cases, you must report your capital gains and losses on the new Form 8949, Sales and Other Dispositions of Capital Assets. Then, you report certain totals from that form on Schedule D (Form 1040).If you had foreign financial assets in 2011, you may have to file the new Form 8938, Statement of Foreign Financial Assets, with your return.

Standard mileage rates. The 2011 rates for mileage are different for January 1 through June 30 than for July 1 through December 31. For business use of your car, you can deduct 51 cents a mile for miles driven the first half of the year and 55 ½ cents for the second half. Medical and moving mileage are both 19 cents per mile for the early half of the year and 23 ½ cents in the latter half. 

Standard deduction and exemptions increased. 

• The standard deduction increased for some taxpayers who do not itemize deductions on IRS Schedule A (Form 1040). The amount depends on your filing status.
• The amount you can deduct for each exemption has increased $50 to $3,700 for 2011.

Self-employed health insurance deduction. This deduction is no longer allowed on Schedule SE (Form 1040), but you can still take it on Form 1040, line 29.

Alternative minimum tax (AMT) exemption amount increased. The AMT exemption amount has increased to $48,450 ($74,450 if married filing jointly or a qualifying widow(er); $37,225 if married filing separately).

Health savings accounts (HSAs) and Archer MSAs. The additional tax on distributions from HSAs and Archer MSAs not used for qualified medical expenses increased to 20 percent. Beginning in 2011, only prescribed drugs or insulin are qualified medical expenses.

Roth IRAs. If you converted or rolled over an amount from a traditional IRA to a Roth IRA or designated Roth in 2010 and did not elect to report the taxable amount on your 2010 return, you generally must report half of it on your 2011 return and the rest on your 2012 return.

Alternative motor vehicle credit. You can claim the alternative motor vehicle credit for a 2011 purchase only if the vehicle is a new fuel cell motor vehicle.

First-time homebuyer credit. The credit expired for most taxpayers for 2011. Some military personnel and members of the intelligence community can still claim the credit in 2011 for qualified purchases.

Health coverage tax credit. Recent legislation changed the amount of this credit, which pays qualified health insurance premiums for eligible individuals and their families. Participants who received the 65 percent tax credit in any month from March to December 2011 may claim an additional 7.5 percent retroactive credit when they file their 2011 tax return.

Mailing a return. The IRS changed the filing location for several areas. If you’re mailing a paper return, see the Form 1040 instructions for the correct address.

Detailed information on these changes can be found on the IRS website –www.irs.gov.   

Many people may not realize the Social Security benefits they received in 2011 may be taxable. All Social Security recipients should receive a Form SSA-1099 from the Social Security Administration which shows the total amount of their benefits. You can use this information to help you determine if your benefits are taxable. Here are seven tips from the IRS to help you:

 1.      How much – if any – of your Social Security benefits are taxable depends on your total income and marital status.

2.      Generally, if Social Security benefits were your only income for 2011, your benefits are not taxable and you probably do not need to file a federal income tax return.

3.      If you received income from other sources, your benefits will not be taxed unless your modified adjusted gross income is more than the base amount for your filing status (see below).

4.      Your taxable benefits and modified adjusted gross income are figured on a worksheet in the Form 1040A or Form 1040 Instruction booklet. Your tax software program will also figure this for you.

5.      You can do the following quick computation to determine whether some of your benefits may be taxable:

• First, add one-half of the total Social Security benefits you received to all your other income, including any tax-exempt interest and other exclusions from income.
• Then, compare this total to the base amount for your filing status. If the total is more than your base amount, some of your benefits may be taxable.

6.      The 2011 base amounts are:

• $32,000 for married couples filing jointly.
• $25,000 for single, head of household, qualifying widow/widower with a dependent child, or married individuals filing separately who did not live with their spouse at any time during the year.
• $0 for married persons filing separately who lived together during the year.

7.      For additional information on the taxability of Social Security benefits, see IRS Publication 915, Social Security and Equivalent Railroad Retirement Benefits. You can get a copy of Publication 915 at www.irs.gov or by calling 800-TAX-FORM (800-829-3676).

WASHINGTON, D.C. — As part of a continuing effort to improve service to taxpayers, the Internal Revenue Service announced the availability of a new online tool to help people easily find a location for volunteer tax preparation assistance.

The new tool, available 24 hours a day on IRS.gov, makes it easier than ever for qualified individuals to find free help through the IRS Volunteer Income Tax Assistance (VITA) program. Volunteers at VITA locations generally offer tax preparation for people with incomes of $50,000 or less free of charge.

Taxpayers can search the word “VITA” in IRS.gov and click on the option “Free Tax Return Preparation For You by Volunteers,” followed by ”Find a VITA site near you” to access the tool.

Once there, an easy-to-use locator prompts users to enter a zip code to search thousands of free tax preparation sites, narrowing the results to a selected radius. VITA sites are listed by location name, address, phone number, days and hours of operation, and the language-assistance options offered. Finally, taxpayers select a specific tax preparation site to get a map to provide step-by-step directions.

The VITA program has enjoyed tremendous support since it was created in 1969. For example, more than 3 million tax returns were prepared during the 2011 filing season by volunteers working under either the VITA program or the Tax Counseling for the Elderly (TCE) program.

The Tax Counseling for the Elderly program provides free tax service for all taxpayers with priority assistance to taxpayers 60 and older. A TCE locator is available on the AARP site at www.AARP.org.

The new VITA locator tool is part of a number of enhancements to IRS.gov. The IRS has updated the front page of its website to make it easier for people to get key forms, information and file tax returns. Additional improvements are planned for IRS.gov in the months ahead.

In addition to these resources, the IRS website has a wealth of free information and tax support. The official IRS website is www.irs.gov. Taxpayers are reminded not to be confused by internet sites that end in .com, .net, .org or anything other than .gov.

Sen. Barbara Buono

TRENTON – A bill sponsored to create a comprehensive, searchable online public record of state spending was unanimously approved Monday in the Senate State Government, Wagering, Tourism and Historic Preservation Committee.

“Taxpayers deserve to know how their money is spent, especially during these tough economic times,” said Senator Barbara Buono (D-Middlesex), a sponsor of the bill. “Placing state expenditures under a public microscope through which New Jerseyans may investigate and understand the state’s spending and fiscal priorities will be an ally in the on-going battle against waste and corruption.”

The bill, S-143, would direct the State Treasurer and the Chief Technology Officer to design, develop, maintain and operate the website, which would retain and display information regarding expenditures, including purchases, contracts, loans and grants. A link to the site would be clearly displayed on the official website of the State of New Jersey.

The bill would require the website to include a record of all state expenditures as well as:

• The names and addresses of state contractors and entities receiving grants;
• The names of principal officers and directors of contractors and grant-receiving entities;
• A description and price of goods and services provided to the state;
• The amount and purpose of any grant from the state; and
• The state fund in which the contract or grant is paid with or out of and any additional terms of the contract or grant.
• Additionally, the website would include a component for public comment and feedback to improve its accessibility.

The state’s current transparency website, yourmoney.nj.gov, lacks critical details that would enable taxpayers to fully comprehend how their money is spent, according to Buono.

“The product of a website that shows which entities are receiving taxpayer dollars and why will be a more honest, open and transparent government,” said Buono. “The well-being of this state and the preservation of our democratic ideals depend on re-gaining the public’s trust, and that starts here.”

The bill now heads to the Senate Budget and Appropriations Committee for consideration.

The website would become operational as of July 1, 2013.

STATE – New Jersey residents say the most pressing issues facing the state are property taxes and jobs, according a new Monmouth University/NJ Press Media Poll. Each of those issues were identified by 42 percent of respondents, while public schools (20 percent), general economic conditions (19 percent), and other taxes (15 percent) were also identified as causes for concern.

When asked specifically which tax cut should be a higher priority for Trenton, state residents overwhelmingly pick reducing property taxes (69 percent) over reducing income taxes (19 percent). Prioritizing property tax cuts is important for homeowners (75 percent) and renters (59 percent) alike.

“New Jerseyans seem to agree that prioritizing cuts to the state’s highest in the nation property would benefit everyone, whether they directly pay those taxes or not,” said Patrick Murray, director of the Monmouth University Polling Institute.

Gov. Chris Christie’s job approval rating remains strong, at 52 percent to 38 percent disapproving among all New Jersey residents. However, nearly half (48 percent) say Christie is more concerned about his political career while 39 percent say he is more focused on managing the state.

The Monmouth University/NJ Press Media Poll was conducted by telephone with 803 New Jersey adults from January 31 to February 4, 2012. This sample has a margin of error of + 3.5 percent. The poll was conducted by the Monmouth University Polling Institute and originally published by the New Jersey Press Media newspaper group.

Although most income you receive is taxable and must be reported on your federal income tax return, there are some instances when income may not be taxable.

The IRS offers the following list of items that do not have to be included as taxable income:

• Adoption expense reimbursements for qualifying expenses
• Child support payments
• Gifts, bequests and inheritances
• Workers’ compensation benefits (some exceptions may apply; see Publication 525, Taxable and Nontaxable Income)
• Meals and lodging for the convenience of your employer
• Compensatory damages awarded for physical injury or physical sickness
• Welfare benefits
• Cash rebates from a dealer or manufacturer

Some income may be taxable under certain circumstances, but not taxable in other situations. Examples of items that may or may not be included in your taxable income are:

• Life insurance If you surrender a life insurance policy for cash, you must include in income any proceeds that are more than the cost of the life insurance policy. Life insurance proceeds, which were paid to you because of the insured person’s death, are generally not taxable unless the policy was turned over to you for a price.
• Scholarship or fellowship grant If you are a candidate for a degree, you can exclude from income amounts you receive as a qualified scholarship or fellowship. Amounts used for room and board do not qualify for the exclusion.
• Non-cash income Taxable income may be in a form other than cash. One example of this is bartering, which is an exchange of property or services. The fair market value of goods and services exchanged is fully taxable and must be included as income on Form 1040 of both parties.

All other items—including income such as wages, salaries, tips and unemployment compensation — are fully taxable and must be included in your income unless it is specifically excluded by law.

These examples are not all-inclusive. For more information, see Publication 525,Taxable and Nontaxable Income, which can be obtained at www.irs.gov or by calling the IRS at 800-TAX-FORM (800-829-3676).