If you received a notice asking you to repay benefits paid to you through the Property Tax Reimbursement (PTR) Program, but believe your income did not exceed the income eligibility limit for the year in question ($60,000 for 2007, $70,000 for 2008), the information below provides guidance on how to respond to the notice.
First, compare the amounts on each line of the income section of your 2007 or 2008 Federal income tax return with the amounts you reported for PTR purposes for that year. With very few exceptions, all income
that you received during the year must be taken into account to determine your eligibility. In most cases you must report on your PTR application the total amount of income from your Federal return, not just the taxable amount.
Pay particular attention to the sources of income below to make sure that you reported the correct amount of income from your Federal income tax return on your reimbursement application.
- IRA Distributions. Report total amount of IRA distributions from Federal Form 1040. (Do not include in PTR income a direct rollover to another tax-deferred financial instrument.)
- Pensions and Annuities. Report total amount of pension and annuity payments from Federal Form 1040. (Do not include in PTR income a direct rollover to another tax-deferred financial instrument or tax-free exchange of a policy or contract between two insurance companies.)
- Social Security Benefits. Report total amount of benefits from Line 20a of Federal Form 1040.
- Interest. Report total amount of taxable interest from Line 8a plus total amount of tax-exempt interest from Line 8b of Federal Form 1040.
If the “Corrected Total Income” figure from your notice includes income that you are not required to report on your PTR application, reply to the notice in writing as requested. You must include copies of the following documents:
- Documentation about the income source that explains why the income did not have to be included for PTR purposes. For example, for a rollover of an IRA or pension distribution or a tax-free exchange of a policy or contract between two insurance companies, submit a copy of the Form 1099-R you received in connection the transaction; and
- Your 2007 or 2008 Federal income tax return (Form 1040) or IRS Tax Return Transcript for 2007 or 2008; and
- IRS Tax Account Transcript for 2007 or 2008.
To obtain an IRS Tax Return Transcript or IRS Tax Account Transcript free of charge, call the IRS at 1-800-908-9946, or visit their Web site at www.IRS.gov
and click on “Order a Transcript.”
If you have questions regarding the notice or the Property Tax Reimbursement Program, assistance is available:
Call the Customer Service Center 609-943-5000
Visit a Regional Office
View Property Tax Reimbursement Program