Time short for Pennsylvania tax rebate seekers; California reviews
head-of-household filers; and feds, Nebraska tax officials double up
By Kay Bell • Bankrate.com

Because the federal income tax is the biggest and usually the first tax we see listed on our pay stubs, we naturally tend to focus on it.

But state government takes a bite out of our spending money, too. Bankrate.com will help you stay on top of what your localities are collecting -- income, sales, personal property or investment taxes, or often a combination of all.

Here's a look at some recent tax actions across the nation

The original deadline to file for the special rebate was in July, but taxpayers encountered problems getting the paperwork in and were given another month to file. The filing deadline was stretched again because of continuing filing difficulties, but state officials say Nov. 17 is the absolute final day homeowners can request the rebate.

The rebate is part of the state's largest-ever tax cut package, which made 3 million Pennsylvania homeowners eligible to receive rebates on school-district property taxes. So far, 2.4 million have applied for the rebate. To qualify, taxpayers must have:

• Owned the Pennsylvania home for which they are claiming the rebate on July 1, 1999;
• Occupied the home as their primary residence sometime between July 1, 1999, and June 30, 2000; and
• Paid school-district property taxes in full fiscal year 1999-2000 or calendar year 1999.

Homeowners may get additional information by calling 800-362-2050. That number also will let taxpayers get paper application forms by fax. The paper forms must be postmarked by Friday, Nov. 17. Taxpayers who want to file electronically may use the state's Web site. The Internet form must be filed electronically by midnight on Friday.

State officials note that homeowners filing now will not get their $100 rebates until January 2001. Pennsylvanians who have been denied the rebate may ask for a review of the revenue department's decision by calling the Homeowners' Century Rebate Office at 877-255-1775.

Head of household taxpayers in California getting audit letters
SACRAMENTO -- More than 240,000 taxpayers received audit letters in late October requesting additional information about their use of head of household filing status last year.

Head of household status generally is used by unmarried individuals who provide a home for a qualifying person, typically their child. This filing status has lower tax rates and a higher standard deduction than the single filing status. Of the more than 13 million state tax returns filed in 2000, nearly two million taxpayers claimed head of household filing status, according to the California Franchise Tax Board (FTB).

However, state tax officials note that the law governing this status has specific requirements that taxpayers must meet. Many people who consider themselves the head of their household do not meet the legal requirements, according to FTB officials, and mistakenly use that filing status.

"FTB revised the head of household audit letter to make it easier to understand and respond to," said State Controller and Chair of the Franchise Tax Board Kathleen Connell. "Taxpayers receiving the audit letter need to complete it and return it to FTB within 20 days from the date on the letter."

Those taxpayers that officials determine do not to qualify for head of household filing status will be taxed at the higher single filer rate. Taxpayers who do not respond to the letter are also subject to additional penalties, notes the FTB.

Anyone who has questions about the head of household filing status can call 1-800-338-0505 to request the FTB's Publication 1540 detailing the requirements or visit the state's Web site to download a copy.

Feds, Nebraska tax officials now under same roof
OMAHA -- Nebraska taxpayers looking for state tax information now will find they can get federal tax help, too.

The Internal Revenue Service office moved from its 66-year-old home in downtown Omaha on Nov. 14 to the State Office Building at 1313 Farnam St.

The move, says IRS office manager Craig Wilson, should make it more convenient for taxpayers to take care of state and federal tax matters in one visit. Plus, the new location affords the feds more space.

The IRS' 70 employees are on the first floor of the building, with a taxpayer service area twice the size of the old one, Wilson said. Taxpayer service hours will remain the same: 8 a.m. to 4:30 p.m., Monday through Friday.

-- Posted Nov. 16, 2000