FA R M L A B O R I N F O R M AT I O N B U L L E T I N
Voice of the Fields California
February 22, 2012
It’s tax Season
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tate and federal personal income tax returns for 2011 are due on April 17, 2012. Employers are required to mail out employee W-2 forms needed for filing income tax returns by January 31, 2012. If you have not received your W-2, contact your employer and ask for another copy and make sure that they have your correct address and contact information. Once you have your W-2 you are able to file your state and federal income tax returns. Other items you will need to file your tax returns include: n
Valid Social Security cards for the taxpayer, spouse and dependents
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Birth dates for primary, secondary and dependents on the tax return
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Wage and earning statement(s) Form W-2, W-2G, 1099-R, from all employers
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Interest and dividend statements from banks (Forms 1099)
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A copy of last year’s federal and state returns, if available
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Bank routing numbers and account numbers for direct deposit
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Other relevant information about income and expenses
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Assistance options The best way to find answers to your tax questions is by visiting the IRS website at www.irs.gov. This website will help you obtain important forms, information and file your tax returns. There are also helpful videos and links to information to help you complete your returns. The IRS also has IRS2Go, a smartphone application that lets taxpayers check the status of their tax refunds and obtain helpful tax information. Individuals making $50,000 or less can also utilize the Volunteer Income Tax Assistance (VITA) program to get free assistance in filing your taxes.
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Assistance is generally available from February 1 through April 15th. The VITA program specializes in assisting disabled taxpayers, those with low to limited income, and non-English speaking taxpayers. Individuals that are 60 years and older can take advantage of free tax counseling and tax preparation through the Tax Counseling for the Elderly program. Information on these programs is available at www.irs.gov. You can also get information and assistance through the IRS toll-free number 1-800-829-1040 (Monday – Friday, 7:00 a.m. – 7:00 p.m.)
Tax Credits Earned Income Tax Credit (EITC)
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he Earned Income Tax Credit (EITC) is a refundable federal income credit designed for individuals and families who earn low-to- moderate incomes. The credit can reduce tax liability, or provide a sizable refund when taxpayers have no withholdings. Originally approved by Congress in 1975, the EITC is meant to offset the burden of social security taxes and provide an incentive to work. When the EITC exceeds the amount of taxes that are owed, it results in a tax refund to those who claim (and qualify for) the credit. To qualify, you must meet certain requirements and file a tax return, even if you do not owe any taxes or are not required to file.
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Tax Credits
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Learn more about the EITC by visiting www.irs.gov or visiting your local VITA office. Location information is available at www.ftb. ca.gov or by calling 800.852.5711.
Child Tax Credit The Child Tax Credit is an important tax credit that may be worth as much as $1,000 per qualifying child depending upon your income. To qualify for this tax credit the child must have been under age 17 (age 16 or younger) at the end of 2011. The child must either be your son, daughter, stepchild, foster child, brother, sister, stepbrother,
stepsister or a descendant of any of these individuals, which includes your grandchild, niece or nephew. An adopted child is always treated as your own child. An adopted child includes a child lawfully placed with you for legal adoption. You must claim the child as a dependent on your federal tax return and the child must be a U.S. citizen, U.S. national, or U.S. resident alien. The child also needs to have lived with you for more than half of the year. The credit is limited if your modified adjusted gross income is above a certain amount, which varies depending on your filing status. For
married taxpayers filing a joint return, the phase-out begins at $110,000. For married taxpayers filing a separate return, it begins at $55,000. For all other taxpayers, the phase-out begins at $75,000. In addition, the Child Tax Credit is generally limited by the amount of the income tax you owe as well as any alternative minimum tax you owe. If the amount of your Child Tax Credit is greater than the amount of income tax you owe, you may be able to claim the Additional Child Tax Credit. For more information on the Child Tax Credit, or to access the appropriate forms, please visit www.irs.gov.
$6.4 million grant awarded to help retain 1,000 laid-off farm workers
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aid-off farm workers with no prospects for other seasonal work will be retrained in promising new careers with the help of a $6.4 million grant from the state Employment Development Department (EDD). Funding for the program is drawn from the Governor’s 25 percent portion of Dislocated Worker Funds, Title I of the federal Workforce Investment Act, and is under the administrative authority of the Labor and Workforce Development Agency’s EDD. “Unemployment has soared in California’s farming communities
to a level not seen since the Great Depression, as much as double the statewide rate in some rural areas,” said Marty Morgenstern, Secretary of the California Labor and Workforce Development Agency. “The recession has dealt some of its most severe blows to seasonal farm workers. This funding will equip these workers with the tools needed to quickly move forward with their lives and into a broader array of job possibilities.” La Cooperativa Campesina de California and its five memberagencies will use the funds to retrain 1,091 jobless farm workers for jobs
in industries that continue to thrive during the recession, including the allied health field, industrial maintenance, retail trade/service, and the green and renewable energy sector. The agencies will provide regionalized employment and retraining services to migrant and seasonal farm workers and their families who reside in agricultural areas with high levels of both unemployment and poverty. For more information about this project, please contact Marco Lizarraga, La Cooperativa Campesina de California, at (916) 388-2220.
The Government can help you keep your home
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re you struggling to pay your mortgage and worried that you may lose your home to foreclosure? The Obama Administration has implemented a number of programs to help homeowners who are at risk of foreclosure or struggling to pay their monthly mortgage. Most of these programs are run by the U.S. Treasury Department and the U.S. Department of Housing and Urban Development (HUD). Distressed homeowners are encouraged to contact their lenders and loan servicers directly to inquire about foreclosure prevention options that are available. If you are experiencing difficulty communicating with your mortgage lender or servicer about your need for mortgage relief, there are organizations that can help contact lenders and servicers on your behalf. If you have an FHA-insured loan, you can contact the FHA National Servicing Center at (800) 622-8525. For conventional loans, contact a HUD-approved housing counselor at (800) 569-4287.
Finding Your Lender Check the following sources for lender contact information: n Your monthly mortgage billing statement n Your payment coupon book n Search the web n Directory assistance or phone book.
Information To Have Ready When You Call To help you, lenders typically need: n Your loan account number n A brief explanation of your circumstances n Recent income documents such as pay stubs, Social Security benefits statements, disability, unemployment, retirement, or public assistance. If you are selfemployed, have your tax returns or a year-to-date profit and loss statement from your business available for reference) n
List of household expenses
Making Home Affordable Program The Making Home Affordable Program is part of the Obama Administration’s broad strategy to help homeowners avoid foreclosure, stabilize the country’s housing market, and improve the nation’s economy. Through the program, homeowners can lower their monthly mortgage payments and get into more stable loans at today’s low rates. For homeowners who have determined that homeownership is no longer affordable or desirable, the program can provide a way out which avoids foreclosure. There are also options for unemployed homeowners and homeowners who owe more than their homes are worth. You can read the program summaries on the website
below to determine which program options may be best suited for your particular circumstances. You can find more information about these programs and determine which of these best meet your needs by visiting www.MakingHomeAffordable.gov.
Keep Your Home California California is one of the states that have been hit the hardest by the foreclosure crisis in large part due to the high unemployment rate here as well as the steep home value decline in the state. In June of 2010, California was given approval to develop four unique foreclosure options to help struggling Californians. The state was awarded nearly $2 billion in funds to help approximately 100,000 California homeowners. In collaboration with community partners, foreclosure counselors, housing advocates and others, the state created four programs called Keep Your Home California. Each program is designed to address one or more aspects of the housing crisis. You can learn more about these programs and which one might best suit your situation at the Keep Your Home California website at www. keepyourhomecalifornia.org or call toll-free at 888-954-5337. The website also offers information in Spanish.
Bad Credit? Get help today
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iven the current economic times, many Californians are in debt. Many of them have been building debt throughout their lives, and because of our current economy, many Californians are finding it difficult to pay their bills – which is only making the amount of debt owed larger. There are counselors available to help you find the best way for you to get out of debt – from consolidation to filing for bankruptcy. To find an approved credit counseling service in your area visit the U.S. Department of Justice website at www.justice.gov/ust/eo/bapcpa/ccde/cc_ approved.htm. This site also provides information in languages other than English.
When You File Bankruptcy There are times when filing for bankruptcy is the best option to get in control of your debt. You can choose the kind of bankruptcy that best meets your needs (provided you meet certain qualifications): Chapter 7 – A trustee is appointed to take over your property. Any property of value will be sold or turned into money to pay your creditors. You may be able to keep some personal items and possibly real estate depending on the law of the State where you live and applicable federal laws. Chapter 13 – You can usually keep your property, but you must earn wages or have some other source of regular income and you must agree to pay part of your income to your creditors. The court must approve your repayment plan and your budget. A trustee is appointed and will collect the payments from you, pay your creditors, and make sure you live up to the terms of your repayment plan. Chapter 12 – Like chapter 13, but it is only for family farmers and family fishermen. Chapter 11 – This is used mostly by businesses. In chapter 11, you may continue to operate your business, but your creditors and the court must approve a plan to repay your debts. There is no trustee unless the judge decides that one is necessary; if a trustee is appointed, the trustee takes control of your business and property. If you have already filed bankruptcy under chapter 7, you may be able to change your case to another chapter. Your bankruptcy may be reported on your credit record for as long as ten years. It can affect your ability to receive credit in the future. Information from the United States Department of Justice and can be found online at www.justice.gov.
Voice of the Fields California Circulation: 40,000 copies www.LaCooperativa.org Published monthly by: La Cooperativa Campesina de California 7801 Folsom Blvd, Suite 365, Sacramento, CA 95826 Phone 916.388.2220 Fax 916.388.2425 Editor: Marco Lizarraga Produced with the support of the Employment Development Department Voice of the Fields may be reproduced