My Dollar Plan» Taxes Archive | My Dollar Plan

$6,500 Home Buyer Tax Credit for Existing Homeowners

Madison — Sat, 07 Nov 2009 04:57:24 +0000

Good news for existing homeowners! You’ll finally be eligible to take advantage of the home buyer tax credit. When the President signed a bill today to Extend the $8,000 First Time Home Buyer Tax Credit, it also included a provision for existing homeowners, referred to as long-time residents.

To qualify as a long-time resident, you must have owned and lived in your current residence for at least five years of the previous eight years.

$6,500 Home Buyer Tax Credit

Here are the requirements for the $6,500 home buyer tax credit:

Your new home must have a signed contract by April 30, 2010 and you must close on the new home by June 30, 2010.
Income phaseouts will begin at $125,000 for single filers and $225,000 for married filing joint.
The credit is for primary homes that cost $800,000 or less.

For more information, see the original First Time Home Buyer Tax Credit.

Written by Madison

Click here to leave a comment on this article.
© My Dollar Plan
Get free subscriptions to hundreds of popular magazines!

$8,000 First Time Home Buyer Tax Credit Extended

Madison — Sat, 07 Nov 2009 04:39:53 +0000

The $8,000 First Time Home Buyer Tax Credit that was set to expire on November 30 was extended today. The new deadline to take advantage of the first time home buyer credit is to have a signed contract by April 30, 2010 and close on the house by June 30, 2010.

First Time Home Buyer Tax Credit

As a reminder, here are some of the rules for the first time home buyer tax credit:

The credit is for $8,000 or 10% of the home’s value, whichever is less.
The credit is refundable.
The credit is for primary homes that cost $800,000 or less.

The income limits also went up with the extension. Original phaseouts were for incomes between $75,000 to $95,000 for single and $150,000 to $170,000 for couples. Phaseouts will now begin at $125,000 for single and $225,000 for couples.

In addition to extending the date, the bill also included a $6,500 Home Buyer Tax Credit for Existing Homeowners.

Written by Madison

Click here to leave a comment on this article.
© My Dollar Plan
Get free subscriptions to hundreds of popular magazines!

Tax Extension Deadline Approaching

Madison — Mon, 12 Oct 2009 11:00:08 +0000

The tax extension deadline, October 15, is just around the corner. If you filed an extension back in April, your individual tax return is due on Thursday. Helpful tax information to finish your return can be found in The Ultimate Tax Resource Guide.

Extension Tax Returns

To file your tax return, you can use any of the following software for do-it-yourself filing:

Retirement Plan Contributions

Is your tax bill higher than you anticipated? You can still make contributions to your self employed retirement accounts to reduce your tax bill. See the following retirement plan details:

Tax Planning for Next Year

Once your return is filed, it’s time to plan for next year. Check out 17 Tips for End of Year Tax Planning for ideas.

Written by Madison

Click here to leave a comment on this article.
© My Dollar Plan
Get free subscriptions to hundreds of popular magazines!

Estimated Tax Payment Due

Madison — Mon, 14 Sep 2009 13:12:37 +0000

April 15 is driven deeply into our minds. However, for those of you who have side businesses or are newly self employed, it’s easy to forget the dates throughout the year when estimated tax payments are due. I’m guilty of forgetting just last June. So here’s a reminder, for you (and me!) to pay our estimated tax payment tomorrow!

Estimated Tax Payment Due Dates

One of the reasons it’s so hard to remember the quarterly estimated tax payment due dates…. they aren’t spread out evenly throughout the year. The due dates are as follows:

First Quarter Payment Due: April 15
Second Quarter Payment Due: June 15
Third Quarter Payment Due: September 15
Fourth Quarter Payment Due: January 15

You can see the all the 2009 Tax Dates for other due dates throughout the year.

Estimated Tax Payment Details

Not sure if you have to make estimated tax payments or how to make them? Check out Estimated Tax Payments for details.

Written by Madison

Click here to leave a comment on this article.
© My Dollar Plan
Get free subscriptions to hundreds of popular magazines!

Is There a Cash for Clunkers Tax?

Madison — Fri, 28 Aug 2009 20:22:22 +0000

Is cash for clunkers taxable? Yes, no, maybe. Even though the Cash for Clunkers program ended, the cash for clunkers tax is generating debate.

The cash for clunkers tax is confusing because people are mixing up three kinds of taxes: federal income tax, state income tax, and state sales tax. On top of that, it would be way too easy if all the states had the same rules. Let’s sort through the tax on cash for clunkers.

Federal Income Tax

Is the cash for clunkers voucher subject to federal income tax? No. The official government cash for clunkers site states:

The CARS Act expressly provides that the credit is not income for the consumer.

State Sales Tax

Is cash for clunkers subject to state sales taxes? Maybe. It depends on where you live.

For my fellow Wisconsinites, we don’t have to pay sales tax. The Sales Tax Connection is keeping an updated list of states at Cash For Clunkers – Taxable or Not?

State Income Tax

Is the cash for clunkers program subject to state income taxes? Hmmm. Here’s where it gets a little fuzzy.

Of course it will depend on where you live, as each state has their own income tax laws. Many states base taxable income on the federal income, which we already stated will not include the cash for clunkers. The cash for clunkers program also states that the voucher will be excluded as income for all state benefit or assistance programs.

While we could assume that those rules lead us to the conclusion that the program is not subject to state income tax, I’m never one to assume anything when it comes to taxes!

To help us draw the correct conclusion, some states are explicitly stating that cash for clunkers will not be taxable income in their states, including Arizona and Nebraska.

Unfortunately, I haven’t found anywhere that is consolidating the answers to the state income tax question. If you find a source, let me know!

More Cash for Clunkers tax information:

Written by Madison

Click here to leave a comment on this article.
© My Dollar Plan
Get free subscriptions to hundreds of popular magazines!

Tax Credit for First Time Home Buyers Improved

Madison — Wed, 10 Jun 2009 13:24:00 +0000

The $8,000 First Time Home Buyer Tax Credit just got even better! You can now get an advance on your $8,000 tax credit at the time you purchase your home.

It allows buyers to use the tax credit for closing costs and additional down payments instead of waiting until you file your tax return. It’s great news for those of you who were planning to buy a home by November 30, 2009.

Tax Credit Advance

The advance on the tax credit will be for buyers who use FHA loans. Borrowers will also be required to make a 3.5% down payment. Borrowers who work with state and local housing finance agencies, government agencies and approved nonprofit groups are also eligible.

Cost of Tax Credit Advance

Being able to access the tax credit ahead of time, is a great idea, but it isn’t free. The Federal Housing Commissioner released a Mortgagee Letter 2009-15 which establishes a maximum on the interest rates and fees:

Any costs attendant to the purchase of the tax credit are to be nominal and discounting the anticipated credit to cover the costs and expenses of the transaction must be reasonable and disclosed to the home buyer.

In FHA’s view, fees and costs that total more than 2.5% of the anticipated credit are considered excessive. (Example: $6000 to be refunded, with all fees and costs discounted, borrower should receive not less than $5850.00 for sale of tax credit.)

Zero Down Payment?

Buyers will not be able to use the advance to fund their entire down payment. The FHA loans will still require that the borrower comes up with the 3.5% down payment from their own funds. The tax credit advance can then be applied for a larger down payment in addition to the 3.5%, if the buyer chooses.

First Time Home Buyer Details

For more information on the first time home buyer credit, see the First Time Home Buyer Tax Credit or First Time Home Buyer Tax Questions. The credit can be claimed on IRS Form 5405.

Written by Madison

Click here to leave a comment on this article.
© My Dollar Plan
Get free subscriptions to hundreds of popular magazines!

Ask Madison: Last Minute Tax Questions

Madison — Wed, 15 Apr 2009 13:29:50 +0000

Tax day is here! Have you filed your tax return yet? If not, you can always file an extension. Don’t forget that the first 2009 estimated tax payment is also due today.

Lots of first time home buyers are planning to file for the 2009 $8,000 First Time Home Buyer Tax Credit on their 2008 tax returns. There are lots of questions about the tax credit, so let’s dive right in!

If we are purchasing a home as a married couple and one of us is a first time home buyer and the other one is not, do we qualify for the credit at all? – Will

According to IRS Form 5405, it looks like for married couples, both of you must be first time home buyers to claim the credit.

Is there a way I can qualify for the $8,000 credit if I am preapproved for a loan before December 1st, but I don’t purchase a home until summer 2010? – Steve

Unfortunately, you need to purchase your home before November 30, 2009. A preapproval by that date won’t qualify you for tax credit.

Is this credit “up to” $8,000, depending on your income? What I’ve heard is that unless your tax liabilities are greater than $8,000, you won’t be able to claim the full credit amount. – Max

The “up to” part accounts for the 10% of purchase price. If you only bought a $50,000 home, you would get $5,000. The tax credit is refundable, so you could receive more money than your tax liability.

We sold our home ten years ago, bought a mobile home, which we own, but not the land. We pay rent on the lot and pay only personal property taxes on the mobile home, just like our autos. Do we qualify for the $8,000 credit? – Harvey and many others

I’ve done a lot of research on the mobile home issue for you. Unfortunately, it looks like mobile homes are still considered a primary residence. Therefore, if you owned one in the last 3 years, you will not be able to claim the tax credit.

See “Who Can Claim the Credit” section of Form 5405. It states:

You (and your spouse if married) did not own any other main home during the 3-year period ending on the date of
purchase…. Main home. Your main home is the one you live in most of the time. It can be a house, houseboat, housetrailer, cooperative apartment, condominium, or other type of residence.

Written by Madison

Click here to leave a comment on this article.
© My Dollar Plan
Get free subscriptions to hundreds of popular magazines!

File an Extension to Lower or Hedge Your Tax Bill

Madison — Mon, 13 Apr 2009 13:29:57 +0000

Think filing an extension is only if you haven’t finished your taxes? Think again! An extension is actually a powerful tool to lower your tax bill, or place a hedge against your taxable income next year.

Tax Extension

Taxes are due on April 15, but an extension will get you an extra six months to file. You still need to pay the taxes due on April 15, but your filing can wait. Once you’ve filed an extension, the filing is due October 15, 2009.

How to File an Extension

I used TaxCut to prepare my taxes, but the cost to e-file an extension was $19.95. No thanks. Luckily, there are plenty of other options to e-file an extension for free:

I used the free fillable forms. Just create an account and select “file an extension.” It took about 5 minutes. It was very easy to copy my information from TaxCut to the fillable forms. There was a spot to put in the automatic deduction from my checking account for our taxes due.

If you want to print and mail the form, you can use IRS Form 4868: Application for Automatic Extension of Time to File.

Lower Your Tax Bill

For the self employed out there, we know that solo 401k contributions reduce your taxable income. However, if you found yourself stuck with a big tax bill and wanted to put more money in your solo 401k, but don’t have access to the money yet, the extension will be a great help.

The great part about a tax filing extension is that it also extends the date that contributions are due for a solo 401k. This is different than the rules for IRAs. It also allows you a unique strategy to lower your tax bill with a very late contribution to your retirement plan.

Just think, you can put the following possible sources of income to use for your 2008 tax year, even if you receive them after April 15:

Tax refund.
Money you’ll receive in the make working pay tax credit.
Accounts receivable due after April 15.
Money you’ll save if you can participate in the Making Home Affordable program.
Bonus money received in the summer or fall.

How to Hedge Your Tax Bill

In addition to being able to make a contribution later in the year, chances are by October 15, you’ll also have a better idea about how much income you’ll bring in for the year.

Our self employment income is extremely variable, so we never know where we’ll end up at the beginning of the year. However, by October, we have a pretty good idea. Many of you with small businesses fall into the same trap.

The great part about the tax extension, is that you can wait and see if your taxable income will be lower or higher next year, and make the contribution earmarked for the solo 401k in the year you need it most.

Even if you end up in the same tax bracket both years, you may find yourself able to reclaim more of the phase-outs of some common traps, like the student loan deduction or child tax credit.

Action Plan

I actually have a new set of vacation pay that I won’t get until September when my employer will settle up from when I left my job last year. I’ve earmarked it to put into my solo 401k to lower our taxes.

I want to wait and see which year, 2008 or 2009, that the deduction would benefit most. With the tax extension, I’ll have the option to apply it to either year.

Written by Madison

Click here to leave a comment on this article.
© My Dollar Plan
Get free subscriptions to hundreds of popular magazines!

Will the $15,000 Home Buyer Tax Credit Return?

Madison — Tue, 31 Mar 2009 13:29:55 +0000

The $15,000 home buyer tax credit that was scaled back in favor of an $8,000 First Time Home Buyer Tax Credit in the economic stimulus plan is showing signs of life again!

Last week, Republicans proposed the Responsible Homeowners Act, which revives the $15,000 home buyer tax credit.

$15000 Home Buyer Tax Credit

The proposal includes a $15,000 home buyer tax credit. Details of the tax credit include:

Purchases of all primary residences, not just first time home buyers.
Purchased before July 1, 2010.
5% minimum down payment.

Tax Credit to Refinance

In addition to buyers, they propose a refinancing tax credit. It’s a $5,000 tax credit that could be used to cover closing costs, buy down points, or reduce principal. It would include refinances that take place by July 1, 2010.

Since many people are refinancing right now it will be interesting to see if they make it retroactive to include those of you who have already done it. Otherwise it might be another scenario where early birds are left out in the cold.

Tax Breaks for Investors

I was intrigued by the inclusion of tax breaks for investors, since we’re getting into real estate investing right now:

An equalizing of the treatment of a home purchased for occupancy with a home purchased for rental purposes (defined as being rented to the same tenant for at least 181 days out of the year). The same exclusion from taxes for any future appreciation in the home value applies. This covers purchases made before July 1, 2010.

The proposal also includes some incentives for lenders. Complete details on the proposal can be read at TownHall.com.

Home Owner Tax Credits

We’ve seen so many forms of the home buyer tax credit. Right now we have the $7,500 First Time Home Buyer Tax Credit (which was really a loan) for 2008 and the $8,000 tax credit for 2009.

In addition, there’s the Making Home Affordable Program for refinances and modifications.

Is anyone else having a hard time keeping up with the constantly changing programs for home buyers and home owners? It seems like it will be really hard to measure the success of any of the programs since they keep changing and adding to them.

Written by Madison

Click here to leave a comment on this article.
© My Dollar Plan
Get free subscriptions to hundreds of popular magazines!

Tax Deductions for the Self Employed

Madison — Thu, 26 Mar 2009 13:48:16 +0000

My new business partner wanted to know what he needed to keep track of for his new venture into self employment this year. I ran through the list of self employed business deductions I have used in the past to get him started.

While I was working on the list, it occurred to me that many of you could also benefit from this information. This list is not a complete list, but rather the deductions that I routinely use. Most of the deductions are taken on Schedule C unless otherwise noted.

Self Employed Tax Deductions

Internet Access. Both at home and in coffee shops that I work at for WI-FI access.
Website Expenses. Fees paid to purchase domains, hosting, and other fees associated with running a website.
Cell Phone. You cannot deduct the primary phone line at your house, but if you have multiple lines or a cell phone you use for business, the extra lines are deductible.
Contract Labor. Independent contractor’s that you hire to complete work are not employees, but the payments can be deducted.
Computer. I bought a new business laptop on December 31. You can either depreciate the cost over multiple years or deduct it all at once using section 179.
Advertising. Advertising costs are deductible.
Prizes for Giveaways. If you purchase the prizes, you can deduct the cost.
Tax and Accounting Software. Software you buy to keep the books for your business is deductible.
Filing Fees. You can deduct fees you pay to the state to maintain your business license.
Postage and P.O. Box Fees. Don’t want your business mail going to your home address? Set up a P.O. Box and deduct the cost.
Office Supplies. In addition to postage, you can deduct the cost of paper, pens, etc.
Mileage. You can deduct business mileage on your personal car. Make sure you keep good records.
Business meals. Business meals are deductible at a rate of 50%.
Retirement Contributions. Contributions to a Solo 401k or other qualified plan are deductible on line 28.
Self Employment Tax. Half of the self employment tax you pay can be deducted on line 27.
Home Office Deduction. If you work from home, you can deduct the costs associated with maintaining an exclusive home office on form 8829. You can include a portion of real estate tax, mortgage interest, insurance, maintenance, utilities, office furniture, casualty losses and depreciation.

Written by Madison

Click here to leave a comment on this article.
© My Dollar Plan
Get free subscriptions to hundreds of popular magazines!

Make Working Pay Tax Credit Hits Paychecks Soon

Madison — Mon, 23 Mar 2009 13:29:31 +0000

The Make Working Pay tax credit was included as part of the American Recovery and Reinvestment Act. Beginning in the next few weeks, you’ll begin to see the money in your paycheck.

Make Working Pay Tax Credit

The credit is $400 for working individuals and $800 for married filing joint. The refundable credit is available in 2009 and 2010. The maximum credit is 6.2% of earned income; it phases out at $75,000 for individuals and $150,000 for married couples filing jointly.

How To Get Your Money

The withholding on your paycheck will be lowered resulting in more take home pay. You do not need to submit a new W-4, your employer will automatically adjust your withholding. Employers need to begin using the updated withholding tables no later than April 1, 2009.

If you are curious, you can calculate the new amount you’ll have withheld based on the new withholding tables. Use the table that corresponds to the filing status and number of exemptions your employer has on file from your last W-4.

If you don’t make enough to pay income tax or your employer does not withhold taxes, you can claim the credit on your 2009 tax return.

For Self Employed

Self employed workers can reduce your estimated tax payments if you want to keep the money in your pocket instead of waiting to claim your tax credit when you file your return.

You can see Publication 15-T for more information from the IRS on the Make Working Pay Tax Credit.

Action Plan

Because the $400 will be spread out over 9 months, it could get easily lost in your day-to-day finances. If you are paid every other week, you will probably see about $20 extra per paycheck.

Make a plan of how you want to spend your tax credit, without just absorbing the money into your monthly cash flow. To keep track, separate the extra money each time you get paid and allocate it to your goals. Once you receive your entire $400, you’ll have something to show for it instead of wondering where it went!

Written by Madison

Click here to leave a comment on this article.
© My Dollar Plan
Get free subscriptions to hundreds of popular magazines!

TurboTax Spring Giveaway

Madison — Fri, 20 Mar 2009 13:29:02 +0000

Happy first day of spring! The weather is getting nicer and it’s time to get outside. However, it’s also less than a month until taxes are due. Are yours done?

Great news for the procrastinators out there! The Free Money Friday feature is a TurboTax giveaway for two lucky readers. The prize is a TurboTax Premier Online access code.

How to Enter the TurboTax Giveaway

To enter the giveaway, just leave a comment below answering one of the following questions:

What financial task do you still need to complete before winter is over (besides your taxes)?

If you’ve already finished all your winter tasks, what financial task is your top priority for spring?

The TurboTax giveaway will end next Friday, March 27 at 5 pm central time and winners will be announced on Saturday, March 28.

Helpful Tax Information

If you’re still working on your taxes, here are some helpful articles:

Written by Madison

Click here to leave a comment on this article.
© My Dollar Plan
Get free subscriptions to hundreds of popular magazines!

Adventures in Real Estate Investing

Madison — Wed, 04 Mar 2009 14:29:05 +0000

I got an email from an old business associate this week. It’s always nice to hear what people have been up to… and even more interesting when they have a personal finance idea to share. He’s a real estate investor, and it turns out he is looking to expand.

I’ve been interested in real estate, but more from the sidelines. I’ve never wanted to get into it myself because of the hassles. However, the idea of partnering with him has me considering it. We’re going to meet to talk about the idea soon.

In the meantime, I’m busy learning everything I can about real estate investing, starting with the Mr. Landlord free newsletter.

I’ve also been checking out many of the resources listed in 65+ Online Tools and Resources for Real Estate Investors. If you’re currently a landlord, or have considered it, I’d love to hear your thoughts!

I’ll keep you updated on the status of the business venture… now, on to the personal finance articles of the week!

Economy

Frugality

By the Numbers

And More!

Written by Madison

Click here to leave a comment on this article.
© My Dollar Plan
Get free subscriptions to hundreds of popular magazines!

$8,000 First Time Home Buyer Tax Credit

Madison — Thu, 19 Feb 2009 07:29:47 +0000

Update: The $8,000 First Time Home Buyer Tax Credit Extended the deadline until June 30, 2010. In addition, it will now include a $6,500 Home Buyer Tax Credit for Existing Homeowners.

We finally have an enhanced first time home buyer tax credit! The President signed the Economic Stimulus Bill Tuesday, which includes a $8,000 tax credit for first time home buyers.

$8,000 First Time Home Buyer Tax Credit

Even though the $15,000 Home Buyer Tax Credit was proposed, it was cut back in negotiations.

The good news for home buyers, is that unlike last year’s $7,500 First Time Home Buyer Tax Credit, the 2009 home buyer tax credit doesn’t need to be paid back!

Here is additional information on the credit:

It applies to homes purchased January 1, 2009 through November 30, 2009.
You must keep the home for three years.
The credit is for $8,000 or 10% of the home’s value, whichever is less.
The credit is refundable.
You cannot have owned a home for the past 3 years.
It phases out for incomes between $75,000 to $95,000 for single and $150,000 to $170,000 for couples.

How to File for Your Home Buyer Tax Credit

A reader, Yvette, asked the following question:

Since the stimulus package was signed, when and where can I find the details for the $8,000 home buyer tax credit? We are in escrow now hoping to close by the end of this month and are holding off on filing our taxes because we would like to file the house for 2008. Also, do the tax software packages get updated with that info? Or that box for a tax credit?

In the original bill, you could elect to treat the $7,500 loan for a 2009 purchase on your 2008 taxes. According to the new 2009 bill, you can still make the election on your 2008 taxes. If you do this, you still will not have to repay it, if your purchase occurs during 2009.

I checked my version of TaxCut yesterday, but haven’t seen any updates yet. I also haven’t seen any memos from the IRS yet.

In the past, in this type of situation the IRS usually updates the affected forms (Form 5405 is where you claim the credit), and the tax software packages follow soon after. However, we’ll have to wait to see how they decide to handle the increase to $8,000.

Otherwise, if you are really anxious, you could just claim the $7,500 on your taxes, and make an amendment for the other $500 once the forms are available.

More Details

You can read the full text of the economic stimulus bill, called the “American Recovery and Reinvestment Act of 2009” on the White House’s site. The $8,000 home buyer tax credit is in section 1006 in the first and second files.

In addition, the President is planning more relief for homeowners and the housing market in the “Making Home Affordable Program.”

Written by Madison

The Ultimate Tax Resource Guide

Madison — Mon, 16 Feb 2009 13:32:18 +0000

It’s tax time! It’s hard to remember everything about taxes, so here is a comprehensive tax guide to get you through tax season! From important tax dates to planning for next year, and just about everything in between, we’ve got you covered!

Tax Numbers

2008 Tax Information. Reference sheet for 2008 tax limits, credits, exemptions, deductions, phase-out and exclusion numbers all in one place.

2009 Tax Dates. Important tax dates to remember in 2009, including due dates and extensions for your 2008 tax return.

Tax Software

TaxCut. TaxCut is my software of choice this year based on cost and features available. More information is available in the 2008 TaxCut Review.

TurboTax. TurboTax is the most popular tax preparation software. While it’s slightly more expensive than TaxCut, it’s the leader in the industry, and comes out on top in this TurboTax comparison.

TaxAct. TaxAct, the alternative to the big two giants, is gaining momentum. I used it last year and was pleased with the software.

E-Filing

6 Free E-File Options. Check out your free e-filing options this year, including descriptions of the following free e-file programs:

TaxCut Online
TurboTax Online (Review)
TaxAct
IRS Free File
IRS Free File Fillable Forms (Free for use even with a high income)
Volunteer Income Tax Assistance and Elderly Tax Counseling

Tax Credits

Saver’s Credit for Retirement Contributions. The Saver’s Credit (which used to be called the Retirement Savings Contributions Credit), is a tax credit up to $1,000 ($2,000 if filing jointly). The tax credit is for contributions to 401ks, IRAs, and other retirement plans.

$7,500 First Time Home Buyer Tax Credit. A 15 year 0% interest free loan from the government for first time home buyers in 2008. Just make sure you don’t confuse it with the $8,000 home buyer tax credit, that you don’t have to repay for 2009, included in the economic stimulus plan.

Earned Income Tax Credit. The earned income tax credit (EITC), which is refundable, is intended to help low to moderate income individuals and families and provide an incentive to work.

Midwestern Disaster Area Tax Credits. Tax breaks for those impacted by the storms of 2008, including additional college tax credits and expansion of deductible casualty losses from the storms.

Refundable vs. Non-Refundable Income Tax Credits. What’s the difference and what does it mean for your taxes?

Tax Deductions

Personal Car Mileage Deductions. Using your personal car for company business? Here’s how to take your mileage deduction.

Tax Deduction for Women. If you itemize your deductions and have gotten married or been part of a wedding party this deduction is for you! A charitable tax deduction for donating your wedding attire.

Tax Deductions, A Photo Essay. Ideas for more deductions including home mortgage points, long term care insurance premiums, and IRA administration fees.

Overlooked Tax Deductions. Did you have any of these: jury pay paid to employer, student loan interest paid by your parents, or military reservists travel expenses? Don’t forget to take your deduction!

Filing Requirements

How Much Money Do You Have to Make to File Taxes? Did you make less money last year due to the economy? Find out the income thresholds that require you to file a tax return.

When Do Kids Need to File Taxes? If your children earn interest and dividends from investments or have a part-time job, they may need to file a tax return. Find out when you need to files taxes for kids.

How to Make Estimated Tax Payments. Who needs to make estimated tax payments, how to pay, when to pay and how much to pay.

When Should You Mail Your Return or Have it Postmarked? If the tax filing deadline is April 15 what does that really mean for filing and submitting your return and payment?

Planning for Next Year

17 Tips for Tax Planning. A little planning results in great rewards! Here’s your list of money moves to make before the end of the year sneaks up on you!

9 Tax Changes Affecting Individuals for 2009. Among the changes: required minimum distributions suspended, new energy credits, and even a new bicycle tax credit for commuters!

Tax Tips To Save Money Next Year. These tips can help you make the changes needed today and at the end of the upcoming year to take the bite out of your next tax bill.

2009 Standard Deductions Rise and Changes in Earned Income Credit. Some changes for next year could mean tax savings for you.

Tax Terms

Kiddie Tax. The kiddie tax catches some kids who earn interest and dividends from investments. Find out when the kiddie tax applies and recent changes that expanded the kiddie tax to older children.

IRA Recharacterization. What a recharacterization is, why you might need one, how to complete it and when it’s due.

The Alternative Minimum Tax. What is the AMT? And just how do you avoid it?

Tax Organization

Organize & Prepare: Do Your Taxes Quickly. An easy strategy to take the pain out of doing your taxes. It’s based on some simple organization techniques.

How To Track Tax Receipts When You Itemize. When it’s time to sit down to do your taxes, do you wonder where your receipts have gone? Ideas to better prepare for the tax season.

Tax Discussion

Do You Report All Your Income? An intriguing discussion about why some readers do and don’t report all their income for taxes.

What Would Happen If I Don’t Pay My Taxes? Penalties for tax evasion include the IRS seizing your home, car, other assets, freezing your bank accounts or even sending you to prison. Sound fun?

Will we become a nation of tax cheats? Discussion of a new law that would allow tax payers who are caught in a misstep to pay the tax owed, but without penalty or interest.

Tax Q & A

Have a tax question? Chances are someone else did too! Here are a bunch of tax question and answer sessions:

Taxes and IRAs

Fund a Traditional IRA to Reduce Your Taxes. The traditional IRA is an excellent way to not only to reduce the amount of taxes you owe now, but also to help you save more for retirement.

Roth IRA Limits. Information on the 2009 IRA limits. If you still need to make a contribution for last year, see the 2008 Roth IRA Limits.

Unconventional Roth IRA Strategy to Lower Tax Bill. An unusual tax strategy designed to take advantage of low tax rates.

Economic Stimulus Checks

How the Economic Stimulus Check Affects your 2008 Tax Return. An explanation of what happened (the new tax code eliminated the 10% tax bracket), and how tax software programs handle the stimulus check.

The Recovery Rebate Credit: 2nd Chance at the Economic Stimulus. If you missed out on the economic stimulus check in 2008, and your tax situation has since changed, you may be eligible for this rebate. Typical examples include having a baby or making less income.

Canadian Tax Resources

QuickTax. QuickTax is the tax software of choice in Canada.

9 Ways I Reduced My Canadian Taxes Last Year. Helpful list of tax reductions which can be used for tax planning in 2009.

Canadian Tax Tips. Some thoughts to keep in mind to help optimize your tax return in the new year.

Written by Madison