Taxes – Page 2

Let Tax Season Begin!

Yes, it’s that time of year again – tax time! YOu can begin filing your tax returns today. If money is tight, you may be hoping for a refund. But, like many people, you probably have to use part of your refund to pay for having your taxes done.

But, what if you didn’t have to pay a tax preparer? If you have a simple tax return, and you earned less than there limits, you can qualify for FREE tax preparation. The IRS has free filings for income under $66,000, while VITA (more on VITA below) limit is $54,000. Or, check out AARP Foundation Tax-Aide, which has different guidelines by state.

These are the three safest and most reliable options for no-cost income tax preparation (that I know of.)

I know there are some other companies that promise free preparation, but watch for these restrictions:

Do they offer to do your federal return for free, but charge you for the state return?
Do they restrict your appointment to the first two weeks of February? (I’m really organized, but even I have to wait for W-2’s and 1099’s, etc.)

With the IRS, VITA and AARP, you don’t have to rush and they do both Federal and State (if local rules allow).

Find out if you qualify for VITA (Volunteer Income Tax Assistance)

Volunteer Income Tax Assistance (VITA) has volunteers trained by the IRS to do tax preparation for people who are low to moderate income (families earning less than $50,000.) There are locations in every state, typically at public buildings (like libraries, schools, or town government offices). All have different days and hours. Find the location that meets your schedule by visiting the IRS website.

Find out if you qualify for AARP Foundation Tax-Aide

AARP also offers tax preparation services under their program AARP Foundation Tax-Aide. The program gives special attention to those over 60 years of age. There are eligibility requirements that must be met to take advantage of this service. For more information go to AARP.org

These programs are both designed for those with relatively simple tax returns. People who have more complicated returns that include rental property, buying and selling of investments, or businesses are usually not eligible. Check with each organization for locations and eligibility requirements.

Remember: this year April 15 falls on a Monday and that may be a Federal holiday depending on where you live, so you may have an extra days to file your taxes!

Fact Checking Charities

My heart breaks with all the information and photos from the California Wild Fires. We all want to help and these people need our help. but you want to give where your money will do the best and not go to scammers. If you choose to give, and I’m sure you do, make sure your money goes to those in need through a charity that you have researched.

This is also the time of year when you are receiving mail / calls from many charities who are asking for donations in this holiday season. Check them out as well.

Unfortunately, it’s fairly easy to set up a charity, and fundraisers can legally keep most of the money donated to the cause. Not to mention the scammers who are out there to take your money. Before you donate, find out whether the charity is legitimate. You should also find out how your money will be spent.

You can start your research at Give or Charity Navigator. These organizations research charitable organizations to find out how they use the funds they receive – how much actually goes to the people in need versus other expenses.

Here are some tips to help in your research:

Find out if the charitable organization has a 501(c) status (IRS code for non-profit organizations). Non-profits have stricter requirements, and your donation may be deductible on your tax return.
Find about how much of each dollar is being used for the cause versus administration costs and other expenses. The more expenses, the less of each dollar is being used for those in need. Look for the lowest administrative costs.
For cash donations, request a receipt to use as documentation on your tax returns. All donations over $500 will require additional documntation, so speak with your tax preparer ahead of time.
When donating non-cash items such as food, clothing, furniture, etc, you will need an itemized list of the items you donated and the total value. Most charities will ask you to value your own items.
Make sure you get a receipt for your donations with the charity’s information on it.

Do your research and chose the organization(s) wisely. This is a great way to help out others who are less fortunate than you during this season of giving.

Lowering Your Taxes

It’s this time of year when we are all getting our income taxes done – from gathering our documents to meeting with your accountant.

Don’t forget it’s not too late to make your IRA contribution for last year. You actually have until April 15 to

make your contribution for last year, if you haven’t maxed out your contribution for the previous year. This is turn could lower your income and may turn owing on your taxes to a refund. As your accountant to do this to see if you can benefit from this. It never hurts to ask.

Make 2018 Your Best Year Possible!

Yes, I know it’s a busy time of year to add anything to your do to list. As the year begins, it’s important to make time to complete this check list of items to make 2018 the best year possible.

Investment Accounts
Think about maxing out your 2018 contributions, especially if you have an employer match. You don’t want to miss out on the free matched funds. If you can’t max out, then add as much as you can. Now is the time to look at your investments, it may be time to re-balance and/or make changes to your accounts.

Health Insurance
Understand what your health insurance covers and what it doesn’t. If you have a deductible to meet,if possible schedule your appointments so that you can afford the bills. Remember you may be able to use your FSA (Flexible Spending Accounts) or HSA (Health Savings Account) to plan for some or all of these expenses. Your plan has a list of eligible items you can use the money towards.

Charitable Giving / Donations
If you itemize your taxes, make sure to discuss your charitable giving with your tax preparer as the new tax rules are in effect.

Starting the new year off right will help you throughout the year.

Tax Season Officially Begins

Today is the first day to file your 2017 income tax.

Remember that companies have until January 31 to mail out W-2, 1099 etc. So you may have documents that haven’t arrived yet.

Both VITA (Volunteer Income Tax Assistance) and AARP’s Tax Aid may be able to file you taxes for free. Click on the links to see if you meet the income requirement, what documents to bring with you and where the closest location to you is.

Tax Dates That You Want To Have In Your Calendar For 2018

We all know that it’s tax time, just check your mailbox and email for those 2017 forms.

Early birds – did you know you can’t file until January 29!

Procrastinators – did you know you may get an extra day or two since April 15 is a Sunday.

Get all the dates in one place from Clark Howard.

You May Want To Do This Before The Year Ends

I hope you enjoyed your holidays. Now back to finances.

You may want to consider these steps and do them in this calendar year:

If you pay estimated taxes, consider making your January payment before Dec 31.
If possible, you can prepay your January installment of your real estate taxes before Dec 31. This may be difficult to do if your taxes are escrowed in your mortgage payment. You will need to check with your tax assessor to details in your city / town.

These two steps may work to your advantage with your income tax. Always check with your tax preparer about your individual situation.

Fact Checking Charities

Fact Checking Charities

My heart breaks with all the information and photos from hurricane Harvey and now Irma. We all want to help and these people need our help. but you want to give where your money will do the best and not go to scammers. If you choose to give, and I’m sure you do, make sure your money goes to those in need through a charity that you have researched.

You can start your research at www.Give.org (associated with the Better Business Bureau). This organization researches charitable organizations to find out how they use the funds they receive.

Here are some tips to help in your research:
• Find out if the charitable organization has a 501(c) status (IRS code for non-profit organizations). Non-profits have stricter requirements, and your donation will be deductible on your tax return.

• Find about how much of each dollar is being used for the cause versus administration costs. The more administrative costs, the less of each dollar is being used for those in need. Look for the lowest administrative costs.

• For cash donations, request a receipt to use as documentation on your tax returns. All donations over $500 will require additional paperwork, so speak with your tax preparer ahead of time.

• When donating non-cash items such as food, clothing, furniture, etc, you will need an itemized list of the items you donated and the total value. Most charities will ask you to value your own items.
Make sure you get a receipt for your donations with the charity’s information on it.

Do your research and chose the organization(s) wisely. This is a great way to help out others who are less fortunate than you during this hurricane season.

Save

Getting Rid of the Clutter

It’s summer and wedding season for us.

Our dilemma, what to wear. You may be thinking we have a closet full of clothes to choose from and you are mostly right. Lately, we have been getting rid of stuff. So here’s what we have done so far this year:

Gowns and cocktail dresses – donated to our local high school for the prom

Suits – Men’s and Women’s – lots of peoples in need for clothing in good condition

Clothing – Check out your local shelter or other organizations that are in need.

Cleaning out and giving back all in one tiny action. All this has streamlined our closets and hopefully made a difference in the life of someone else.

For more suggestions, view my resources page.

Getting Rid of the Clutter

As we continue to clean out, we have donated several electronics (old computers, printers, scanners, cameras and more) to great local organizations in need.

This is really easy to do with the help of the Cristina Foundation. They have a website that you can search local non-profits in your area and see what they are in need of. If you have the item(s), you connect with them for the drop off and/or pick up. It ‘s a great way to donated and help out others in need.

For more suggestions, view my resources page.