Questions for the Tax Lady: October 5th, 2009

Check out the following new Questions for the Tax Lady answers and feel free to ask me questions through one of the links below. You can send me an email, direct message or @ reply, and I will do my best to get an answer for you!

Question #1: How are my property taxes calculated?

Answer: Your property taxes are determined based on your local government’s “assessed” value of the property. The exact rate, and assessment rules will vary widely depending where you live, but there are a few general property tax rules. Generally, a local government agency will either base the taxes off of the home’s most recent sales price, or they might have an assessor regularly determine the current market value of the home. Some government agencies update their records every year, however most simply rely on recent sales prices, which may date back decades.

Question #2: Roni, I recently moved to a new city in the same state. How do I notify the IRS of the change?

Generally speaking, you will not need to worry about officially notifying the IRS about a recent move. If you are a wage earning employee, then you will want to make sure and notify your employer who will likely give you a new IRS Form W2 to complete. Otherwise, next time you file a tax return make sure to list your current address. The IRS will see the change, and automatically update their records.