Tag Archives: tax

Introducing My New Blog: TheSimpleTax.com!

Well, it’s finally ready to be released! I would like to introduce my new blog The Simple Tax! Head on over there and check it out!

I started The Simple Tax because I enjoy taxes. That was simple, right? It’s hard to imagine anyone who really enjoys taxes, but we are out there. I particularly like speaking to people about their individual taxes as it opens up many opportunities to assist them with getting the refund that they deserve and are entitled to based on IRS laws.

I also hope to help individuals with very basic returns. I get very frustrated seeing individuals pay around $100 to have their VERY simple returns filed. If you fall into this category, I hope to educate you in a way that you feel comfortable filing your own return.

Do you have a specific tax question that you would like answered? Head over to our Q&A section!

Anyway, please enjoy the new site and all that it has to offer. Please submit and feedback that you have on it. I would greatly appreciate it!

Buying New Windows, Insulation or Central Air? Use the New Home Energy Tax Credit

Thinking of buying new windows or installing central air? The new economic stimulus plan offers some financial help in terms of affordability.

30% Tax Credit on Eligible Energy Saving Materials

This credit has been around for a few years but it has typically been limited to a maximum credit of $500. The new stimulus plan has increased the maximum credit to 30% of the cost of installing certain energy saving materials or $1500, whichever is smaller. Here is a list of things that qualify for the 30% credit:

  1. Insulation
  2. Storm Windows
  3. Central Air Conditioners
  4. Water Heaters
  5. Furnaces
  6. Other Energy Improvements

Of course the IRS and the Government had to put ‘other energy improvements’ into the bill. Don’t ask me what that means because I have no idea.

So, if you were holding back on purchasing new windows or that much needed central air, this new credit may help speed up your decision. I know my mother has been holding off on purchasing windows and this new credit may just encourage her to go ahead and purchase them. The credit will be for purchases in 2009 and 2010.

If the cost of the windows are $5000 for the whole house, you can get a credit of $750 on your 2009 tax return. That’s like getting a 30% discount on your window purchase. Combine the 30% tax credit with your ability to get a good deal and you can turn this purchase into a GREAT deal!

Will this new credit encourage you to purchase any of these items?

2009 Economic Stimulus Plans Effect on Taxes Now and Beyond

As most of you know, President Obama signed the American Recovery and Reinvestement Act into law on Tuesday. Supposedly, millions of Americans will benefit from the plan in more ways than one. Here are a few highlights from the plan and how they will affect your taxes now and in the future.

Making Work Pay Credit

The making work pay credit will be heading to a paycheck near you in the coming months. The employed will get up to $400 per individual and $800 per married couple. Sounds like quite a good amount. However, you will not see all of this money at once as it will be used to reduce your weekly federal taxes on your paycheck. Every little bit helps in these economic times.

What about retirees, veterans, or people on disability? These individuals on Social Security will get a one-time $250 check in 2009. That should help give a small boost to those individuals on a strict fixed income.

What if you are unemployed? The bill has added several things to help those who are unemployed. It has exempted the first $2,400 in unemployement benefits from federal taxation. The bill has also increased the payout by $25 a week, extended the time period for benefits, and it gave a 65% break on COBRA premiums. I just hope this helps incourage individuals to seek work and not just keep them on unemployement longer.

Help For Individuals With Low Incomes

The bill also provides a larger Earned Income Credit (which is refundable) for families with 3 or more children. For those of you that fit into this category it will not affect you until you file your 2009 taxes. However, you may be able to get EIC advance payments by talking to your HR representative at work.

There was also a part of the bill that lowered the threshold for the child tax credit. This will help lower income families due to the lowering of the threshold from $8,500 to $3,000 for the current tax year.

Making Home Ownership More Affordable

The bill included the long awaited (and widely talked about) 1st time homebuyer credit. The original $7,500 credit needed to be paid back over several years. The new credit is refundable (meaning you can get the money even if you have no tax due) and does not need to be paid back. The nice thing about this credit is that you can take it on your 2008 tax return. If you have already filed your return, you may want to consider an amendment.

What are your thoughts on some of these measures? Will they work or will they come back and bite us later down the road?

How Long to Keep Those Pesky Tax Documents

Well, it’s Friday the 13th and I figured what’s more scary than taxes? One of the most frequently asked tax question is how long you must keep tax documents. You want to know the answer? It depends. Isn’t that the answer to everything these days? Anyway, here are some general rules for keeping your records straight with the IRS.

Three Years Might Be Enough

Most tax documents can be shred after three years. Why? Three years is the statute of limitations for tax audits at the IRS. That means that come April 15th, 2009, the IRS can no longer audit you for your 2005 tax return. Why don’t you invite your friends over that day and have a shredding party? You can even have them bring over their papers! However, don’t shred them if you filed for an extension for your 2005 return. You must hold onto those papers until three years after the due date of the extension.

Things to Keep Beyond Three Years

Wait! Step away from the shredder! There are some things that you should keep beyond three years. First, you should keep any records you have on appreciable assets that you currently own. That would include stocks, bonds, antiques, real estate, land, jewelry, etc. Chances are, you will sell these one day and having these documents will be crucial in making sure you are paying the right amount of tax. For example, if you do improvements to your home, it adds to the basis of it. This will end up helping you in the end and may lower your tax on the asset. Make sure you keep all of the documents that shows the costs of the improvements. The IRS is all about showing the appropriate documentation backing your calculations.

Another thing to remember is that if you “forget” to report income, the IRS can go back up to six years. Also, if you plan committing tax fraud, you might as well get used to metal bars because the IRS will find you and they can do that whenever!

Where to Put Your Documents

Now that you know what to keep, where should you keep it? The best place to keep your files is a bank safe deposit box (which is tax deductible if you itemize by the way). If there is no way you can have a safe deposit box, invest in a fireproof safe. Make sure the fireproof safe can take a few hours of heat that way you know it will survive almost anything.

I know it’s a pain to keep all of these records, but believe me, it’s much better than having to pay penalties and interest on taxes that you have to pay due to not having proper records.

Do you have any particular tax questions? Submit them here. As I stated before, I am studying to become an enrolled agent. Answering your questions will be a great learning experience for me!

Money Hacks Carnival #51 – The Office Edition

Welcome to the 51st edition of the Money Hacks Carnival! My name is Adam and I am pleased to be your host this week. Please feel free to poke around the site if it is your first time visiting! You can subscribe to the blog using the links on the right or you can follow me on Twitter to stay up-to-date.

NBC’s The Office is my favorite show on TV. I just love watching the office banter and politics. Every week there is a moment that reminds you of something a co-worker did recently. For this carnival, I decided to categorize the topics by some great characters in the show.

Editor’s Picks

Michael Scott is the Regional Manager of the Scranton branch of Dunder Mifflin. If anyone has the right to pick this week’s best articles, it’s him. He is the glue that holds his team together. Did I really just say that?

Credit Shout tells us to Beware of ATM Scams. Honestly, I really had no idea about some of these. I will be thinking twice about going to the ATM now!

Living Almost Large talks about a family that is in trouble and Their Ship Is Sinking. Looking at this person’s cash flow, it’s hard to believe that they did not see the major problem.

FIRE Finance shares a great story on how Smart Refrigeration Lowers Electricity Bills. Who better to tell you about saving energy on your refrigerator than someone who works with them every day?

PF Credit Cards shows you How to Beat Priceline and Get a Winning Bid. Personally, I have been using Priceline’s Name Your Own Price for over a year now. I will never go back to paying full price again! You really have no say in the brand of your hotel, but you still get to pick the star level. I have yet to be disappointed in the hotel I end up getting.

Career

To me, no one seems more focused on their career than Dwight Schrute. He is constantly reminding everyone about his position with the company and how he is the top salesman. He is also good at sucking up to the boss. Watch the show and learn from Dwight if you are searching for a new job!

Tom at The Strump gives his opinion on How to Translate Employment Ads.

FMF at Free Money Finance lets you know How to Waste Money on a MBA.

Debt and Credit

Kelly is really into fashion and fancy things. Only working at Dunder Mifflin, I can imagine that she has some major credit card debt. Hopefully, some of these articles can help her get on the path to becoming debt free.

Jim at Bargaineering has a Review of MyFICO ScoreWatch. He says it’s perfect for credit score junkies!

Tyler from CreditCards.com talks about how Credit Card Regulation is Brewing for College Campuses Again. Personally, I have never signed up for a credit card at a table at college, sporting event , airport, etc.

Looking for a new rewards credit card? Credit Addict tells us about the Pentagon Federal Visa Rewards Card.

Shaun from Learn Financial Planning gives his 5 Principles for Getting Out of Debt. Some great insights here!

Mr. Banker at Best Interest Rate Banks gives us his review of High Interest Savings Accounts.

Studenomics Breaks Down Student Loans in a non-confrontation manner.

Chris at StumbleForward gives you some tips on Becoming a Blogger to Get Out of Debt.

Housing

Jim just recently bought a house from his parents. I bet he wishes that he could have had some of these great articles to read!

Len Penzo provides us with A Layman’s Guide to Mortgage Application Junk Fees.

Passive Family Income talks about The Recession in America and Home Foreclosures.

Frugality and Saving Money

If anyone on the show is frugal, it’s Pamela. She dresses simple, religiously watched her money while going to college, and was thrifty while planner her first wedding.

Silicon Valley Blogger at The Digerati Life has a Valentine’s Day Tip on Using Ebates to Get Cash Back.

Pete at Bible Money Matters reminds us that Small Decisions Equal Big Results.

J Money at Budgets are Sexy says The Budget is Back, Baby!

Lisa from Greener Pastures presents Economic Collapse-R-Us: 22 Lifestyle Changes of Middle Class America.

The Writer’s Coin presents Am I a Thief or an Entrepreneur? The overwhelming majority of the comments suggest a thief. Head over there and give your input. He has even written a response post to the naysayers.

Matt at Stupid Cents gives us Five Simple Ways to Buy Everything Cheaper and Save Money.

The Shark Investor gives us Strategies for Raising Savings.

Mr. Tough Money Love show us how Arming Ourselves to Save Money on Car Repairs can be a good thing.

Patrick at Money Saving Deals has some Godaddy.com Coupon Codes to share.

David at Personal Finance Analyst gives us The Best Free Budget Worksheets on the Internet.

Dana at Not Made of Money tells us How Her Family Keeps the Breaks on Spending.

The Smarter Wallet shares some delicious Cheap Meals You Can Cook at Home to Save Money.

Debt Kid shows us Why Budgets Don’t Work for Everyone.

Hank at Own The Dollar wants to know Is Three to Six Months of Expenses Enough Money For Your Emergency Fund?

Aryn at Sound Money Matters shows you The Pros and Cons of Homemade Yogurt.

Taxes

When I think of someone who would evade income taxes, I think about Creed. Hopefully some of these articles will help him file his return this year. His first return ever?

Money Tipper lets us know about TurboTax Discounts for Vanguard Customers.

Nickel at Five Cent Nickel gives us Ten Common Income Tax Credits. Head over there to make sure you are getting all the money you deserve.

Thinking of buying a new house? Madison at My Dollar Plan talks about the Possibility of a $15,000 Home Buyer Tax Credit.

Patrick at Military Finance Network answers a question about What You Need to Do If Your Stimulus Check Was Lost of Stolen.

Christian Personal Finance found some places that have Free STATE e-file Online! Living in Maryland, I know that we have free e-file for the state return. It makes it nice and easy!

Insurance

If I had to guess which employee had the greatest amount of insurance, I would say it was Andy. I’d bet he has whole life, term, universal, two health policies and a deferred annuity. He also seems to be the most likely to be a insurance salesman. He just has that way about him!

Mr. GoTo at Go To Retirement gives you an idea about Fixed Annuities and Financial Risk. I think fixed annuities are a great thing to have in retirement. It’s unfortunate that they get such a bad rep from many mainstream media types.

Junior Boomer from The Consumer Boomer talks about Women and Long-term Care Insurance.

Economy

Now honestly, who cares more about the economy than Stanley? Just look at that face!

Kathryn at Out of Debt Christian tells us about The Importance of Shopping Local.

PFR at Personal Finance Reviews tells how the FDIC Plans to Restrict Interest Rates of Troubled Banks.

Curt at Penny Jobs presents The Fiat Money System is Failing.

Money Blue Book Finance wants to know is there a Second Stimulus Check for Obama in 2009?

Investing

Toby is the head of human resources at Dunder Mifflin. If anyone was maxing out their 401(k) there, it would be him.

Sun at The Sun’s Financial Diary alerts you to a Free Stock Analysis Tool.

The Financial Blogger shows you some Options to Secure Your Investment Portfolio.

The Intelligent Speculator wants to know if Super Bowl Ads are Really Worth It?

The Investor at Monevator gives their 10 Reasons to Be Cheerful as an Investor.

Jeff from Good Financial Cents has 7 Things to Know About the 2010 Roth IRA Conversion.

Dividend Tree shows us how Everyday Life Teaches us Dividend Investing.

Other

When I was thinking about what character would be good for the category other, I thought of Ryan. He definitely had some ups and downs with Dunder Mifflin!

MoneyNing presents What Everyone Ought to Know When Applying for Free Stuff.

Patrick at Cash Money Life has some $25 Sign-up Bonuses from Lending Club. You even have 2 chances to win $100!

Mara Rodgers at Secrets for Money gives some great Tips To Teach Kids About Money.

Chris at Financial Reflections lets you know How Identiy Thieves Sell Your Data Online.

Mighty Bargain Hunter gives you Some Great Sources for Free AudioBooks.

Miss M at M is for Money shares with you Deliverance from Debt: Budget Basics.

Mike at Money TLD shares with us 10 Places to Click for Cash. There are quite a few things on this list that I have never heard of. I think I will check some of them out!

Retailers Ask Obama for Sales Tax Holiday

I got this interesting link in my email yesterday. Apparently, in an effort to stimulate consumer spending,  the National Retail Federation has asked President-elect Barack Obama to include a series of sales tax holidays in his upcoming economic stimulus plan. After a dismal holiday shopping season, retailers are really hurting for sales. The NRF proposed that tax holidays be held during March, July and October 2009, each lasting 10 days, including two weekends.

Many states already have sales tax holidays. Past holidays have been limited by dollar amounts or on certain items like clothing. In this proposal, the sales tax would be lifted on almost all taxable goods other than cigarettes and alcohol. The US Government would then reimburse all 45 states that have a sales tax. By temporarily lifting the sales tax for the three 10-day periods, the NRF estimates that consumers could save nearly $20 billion. Just think, that’s another $20 billion that the government will be handing out!

Your thoughts? Would it help you out?