This almost slid by. Teacher's paying a tax on "annualized" income! Do you spread your checks over the full year? You may want to change it. NOW!
Or at least file the correct paperwork.
Click here.
Just in:
IMPORTANT INFORMATION ABOUT IRS 'ANNUALIZED INCOME' CODE:
*UPDATE: I found out some preliminary information tonight and will post more as I get it. Hillsborough County Teachers do not need to worry about this new code. We hold out taxes unlike some school districts. This code applies to teachers in districts that do not withhold taxes. Again, there is no need to worry based on what I have been told. I will post specific information later, but I thought this was important and wanted to ease concerns as soon as I found something out.
April Griffin
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Where was the CTA on this one?
As usual, they were probably lunching with ROSSAC administrators, who also failed to alert us.
Jean and Yvonne, please resign. Whatever happened to the Teamsters?
what?
the CTA fought tooth and nail for the teachers. Couldn't you feel the passion in their negotiations with "the District". Couldn't you see that there was an obvious gap in what was in the best interest of teachers vs. what was the best interest of the administration?
Didn't everyone see the broadcast of the Board meeting where Yvonne chaffed and grittingly fought to the last inch for the teachers that she gets paid handsomely by and for(?) ?
She wore her knuckles to the bone to get what was best for the teachers (that pay her). Didn't you see how she was pained? Didn't you see how the mighty strength of the union fought the supreme fight, only to be bested by..... by.... well what was it bested by?
Oh, that's right, it was bested by the bonus the Supt. got.
"We all get what we deserve because we all understand the plight of public education."
We all see the plight in the classroom. We don't see the plight in the administration.
But we are educators who care and continue to believe that the reasons things are so bad is not our fault.
Yes, please, new people at the helm at CTA!
my husband is a tax accountant and he has heard nothing about this. He will be researching it for me I'll post his results
WHAT?!?!?!?!?!?!?
Could there be anything more ridiculous than taxing additionally THE lowest paid "professionals" with a college degree (or two) for NO extra money earned ????? And the justification for this is....? I'M not earning anything on that "summer" money--the School Board is!!!!
I agree with the CTA issues. They are simply mouthpieces for an administration that is inept on their better days, destructive on their worst.
It's time, Yvonne. Move over and let the younger generation make the changes that you are unwilling to stomach.
It takes confrontation, not capitulation.
I am forwarding the attached in case any of you have been keeping up with The Wall. There is a claim there that our teachers are going to be paying higher taxes because of "compensation deferment" or some such. There's a link to a website which cites the new IRS rule. As you will see reading the attached, the only such case that we have in SDHC is EYP, and we pay taxes on that money when we earn it.
But read the attachment if you're interested or concerned. Apparently the website linked to the Wall is incorrect, at least in our case. And our friend Suzie didn't check her facts before she published her tirade. Not that any of us have time . . .
IR-2007-142, Aug. 7, 2007
WASHINGTON - Moving to clear up confusion about a recent tax law change, the Internal Revenue Service today reassured teachers and other school employees that new deferred-compensation rules will not affect the way their pay is taxed during the upcoming school year.
Recently, the IRS has received inquiries from teachers who had been told that they had to make certain decisions about their pay this month or risk severe penalties. At issue is a 2004 law change that applies to people who decide to defer compensation from one year to a future year. In April, the Treasury Department and the IRS issued final rules implementing this law change.
Under the 2004 law, when teachers and other employees are given an annualization election - that is, they are allowed to choose between being paid only during the school year and being paid over a 12-month period - and they choose the 12-month period, they are deferring part of their income from one year to the next. For instance, a teacher who chooses to get paid over a 12-month period, running from August of one year through July of the next year, rather than over the August to May school year, falls under this law.
The IRS clarified that the new rules do not require school districts to offer teachers an annualization election. Thus, school districts that have not been offering teachers this election are not required to start.
School districts that offer annualization elections may have to make some changes in their procedures. The IRS announced that the new deferred-compensation rules will not be applied to annualization elections for school years beginning before Jan. 1, 2008, so school districts and teachers will have time to make any changes that are needed.
8:20PM
If I may be so bold...
1) If you go to the website watch and listen carefully IT IS ACCURATE.
2) "Under the 2004 law, when teachers and other employees are given an annualization election - that is, they are allowed to choose between being paid only during the school year and being paid over a 12-month period - and they choose the 12-month period, they are deferring part of their income from one year to the next. For instance, a teacher who chooses to get paid over a 12-month period, running from August of one year through July of the next year, rather than over the August to May school year, falls under this law."
HCPS does this. We have a choice. Incidentally, the video that you were directed to was aired RECENTLY and addressed the 2004 law.
Notice how this SINGLES OUT TEACHERS! Sorry my intuition is a-tingling. It is NOT my phone on "vibrate". ;>)
3) "The IRS clarified that the new rules do not require school districts to offer teachers an annualization election. Thus, school districts that have not been offering teachers this election are not required to start."
Ignore this because: HCPS does this. We do have a choice. Some choose to "annualize".
4) "School districts that offer annualization elections may have to make some changes in their procedures. The IRS announced that the new deferred-compensation rules will not be applied to annualization elections for school years beginning before Jan. 1, 2008, so school districts and teachers will have time to make any changes that are needed."
CAUTION:
"may have to make some changes"
"school districts and teachers will have time to make any changes that are needed."
Look, this may indeed be of no consequence to us here at HCPS. I am not inclined to put myself into a situation where I am required to pay more taxes simply because I WAS IGNORANT of what was on the horizon. Has anyone heard of any changes the district may have made?
I suggest that you make everyone aware of this. If it ends up to be a moot point then so be it.
I take my money over the 10 months, put money away and keep the interest it accrues for the summer. The ONLY reason I had for posting this info was for my friends' benefit.
Use of the word "tirade" indicates that maybe someone has a hard time trying to explain the I.R.S. intent when pointedly questioned by a teacher.
Please watch the news report again after reading this response to the previous post.
I am anxiously awaiting our friends post after a CPA is questioned.
IMPORTANT INFORMATION ABOUT IRS 'ANNUALIZED INCOME' CODE:
*UPDATE: I found out some preliminary information tonight and will post more as I get it. Hillsborough County Teachers do not need to worry about this new code. We hold out taxes unlike some school districts. This code applies to teachers in districts that do not withhold taxes. Again, there is no need to worry based on what I have been told. I will post specific information later, but I thought this was important and wanted to ease concerns as soon as I found something out.
April Griffin
This is great news.
Thank you for the FAST and AUTHORITATIVE response Ms. Griffin!
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