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This is a post by BargainBabe.com writer Yazmin Cruz.
This year’s tax deadline, April 17, is looming. Have you done your taxes, yet? If you’re opting to hire a tax professional to complete your taxes, I share 8 tips for finding a reliable tax preparer.
- Check the preparer’s history. You can check with the Better Business Bureau to see the ratings and complaint record on the preparer.
401k / Flickr
This is a post by BargainBabe.com writer Yazmin Cruz.
Getting assistance with your taxes does not have to cost you a dime. If you made less than $50,000 last year, check out the Volunteer Income Tax Assistance (VITA) Program.
The program is sponsored by the IRS and it’s run by IRS-certified volunteers who go through tax training to prepare and file your taxes. Many volunteers also receive training that allows them to help filers in their specific states.
401K / Flickr
This is a post by BargainBabe.com writer Yazmin Cruz.
This past weekend I did my taxes and found out I owe Uncle Sam a nice chuck of change. Thankfully, I prepared for this by stashing away money. If you find yourself in this predicament without any savings, I share five tips to pay off your tax bill below.
- Take a deep breath and face the situation head on. Avoiding your tax bill will only lead to penalties that will end up costing you more in the long run. The IRS can also go after your assets and wages if you attempt to avoid them. (more…)
DonkeyHotey / Flickr
This is a post by BargainBabe.com writer Yazmin Cruz.
I know the last thing you want to think about during the holiday season is taxes. Alas, as the saying goes in this world nothing is certain but death and taxes – that’s why it’s prudent to start preparing now. I’ve compiled a list of things you need to do to save money on your taxes next year.
Feed your 401k – If you have an employer-based retirement plan make sure to max out your contributions especially if the company is
Win this book by commenting below!
(Win my review copy below.)
- How much money do I need to retire?
- How do I manage my retirement savings?
- How do I plan for taxes in retirement?
On the first page, Mike admits that there are plenty of good retirement books out there. So why did he write another one?
Can I Retire?
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Reader Mimi is looking for an “old fashioned CPA” for tax help – and she is willing to pay. Mimi writes:
I am searching for an old fashioned CPA who takes the time to review all deductions, make suggestions, etc. I am fed up with CPA’s who give me short shrift because I am not in business or a huge money making client.
Where can retired seniors go to find a service oriented CPA? I’m not looking for a freebie. I can pay a reasonable hourly fee for personalized service. Please advise if you can point me in the right direction.
thanks,
mimi
AARP is a good resource for seniors looking for tax help, but unfortunately the org’s free tax services run between January and April. Still, contact AARP (member@aarp.org or 888-687-2277) and ask them to point you in the right direction. You might also call your local senior citizens community center for recommendations.
What would you tell Mimi?
Got a question or tip? Shoot me an email.
Ace negotiator Jim Camp says start with no. Credit: falardeau/Flickr
If you end up fighting the IRS over your 2010 tax returns, a skipped return from last year, or another reason why you can’t pay your tax bill in full, it is possible to negotiate a pay as you can plan. Get the best deal possible with these seven tips which I summarized from Jim Camp of Camp Negotiation Systems. His website is Start With No.
1. Do your homework. Instead of reinventing the wheel, gather information from others who have gone through what you are about to. Look for strategies, precedents and tips online, (including the IRS website). Know your rights and your obligations. Take details notes.
2. Schedule face time. When you call the IRS, don’t talk to whoever picks up. Make an appointment to meet with an agent face to face nearby. Don’t answer questions over the phone. Talking in person gives you
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Faced with a tax bill, many of us want to pay less. Credit: Gamma Man/Flickr
Have you finished your taxes yet? They are due Apr. 18, 2011 this year. Avoid paying taxes, or reduce how much you owe, with these last minute tax tips that I summarized from Grant Thornton LLP, a firm headquartered in Chicago.
1. Boost your IRA. Get a deduction on your 2010 return even if you contribute to an Individual Retirement Account in 2011 – as late as Apr. 18, 2011. There is still time to open an IRA if you don’t have one. Contribution limits for 2010 are $5,000 or $6,000 if you are 50 and older.
2. Consider a Roth IRA. If you are not eligible to make a deductible IRA contribution, you may still be eligible to contribute to a Roth IRA. Adjusted gross income limits applicable to Roth IRAs can be significantly higher, particularly where both spouses work and are covered by other qualified retirement plans. A contribution to a Roth IRA will not get you a current tax deduction, but any future earnings will be exempt from tax.
3. Set up and (more…)
Vik-Thor/Flickr
Taxes are due Monday Apr. 18, 2011. These tips for how to deduct moving expenses on your 2010 taxes are summarized from the American Moving & Storage Association.
You can deduct reasonable moving expenses on your 2010 taxes if:
- you moved because of a change in your job or business location
- because you started a new job or business
- your new job is at least 50 miles farther from your old home than your old job was from your old home (If you had no previous job, your new job must be at least 50 miles from your old home) (more…)
A relic of taxes paid past. Credit: kevindooley/Flickr
I know this isn’t what you want to hear, but the clock is ticking on tax returns. I hear it very loudly! To help you get started on your taxes, here are the cheapest and most expensive ways to file. Prices include the cost of filing your federal and state returns.
- How we file: The vast majority of filers – 62% – do their taxes themselves using software, according to a poll of 2,200 people conducted by GetRichSlowly.org and MoneyRates.com showed. Just 23% were going to pay someone else to prepare the tax return, and a whopping 10% will file returns by hand. A lucky 5% will lean on a friend or family member to do their taxes.
- Buying tax software? Get an extra tax discount when you purchase the software through Ebates. Current cash back rebates are 15% back on H&R Block, 10% back on Turbo Tax, and $10-$37.50 on Intuit QuickBooks.
- Most expensive tax online filing: According to Get Rich Slowly, the pricey prize goes to ExpressTaxRefund, which costs approximately $70 .
- Cheapest tax online filing: GRS found the least expensive option is TaxHawk, which costs a big fat $0.
- Most expensive tax software: Turbo Tax (Intuit), which charges approximately $90 to file.
- Cheapest tax software: Tax Act is just $23.
- You need help! Hiring someone to do your taxes may cost hundreds of dollars.
- File for free! I found five ways to file your taxes for free.
Stop! Medical expenses can lower your taxes. Credit: TruthOut.org/Flickr
Keith Mendonsa, a tax expert from eHealthInsurance.com, shared the following four ways to reduce your taxes with health-related expenses. Consult an accountant or certified tax professional for more information about how these four tax deductions apply to you.
- Health tax deductions: A new deduction this year and only this year let’s self-employed persons deduct the cost of their health insurance premiums from their self-employment taxes on Schedule SE.
- Got self-employment income? “You may also be able to deduct health insurance premiums you paid for yourself and your dependents as an ‘above the line’ business expense (that is, without itemizing) on your federal tax return,” Mendonsa said in an email. You cannot deduct premiums paid during (more…)
Here are five ways to file for free. Get tax forms here or visit your local post office. The deadline to file taxes this year is Apr. 18, 2011.
1. IRS Free File. If you make less than $58,000, you are eligible to file your federal taxes for free using the IRS Free File program. Some 100 million Americans are eligible to use IRS Free File. The program walks you through the entire process and does the math for you. You can get a refund in as little as 10 days if you opt for direct deposit. This service is also available in Spanish.
To file your taxes for free click on the above link, then click on “Free File” on the right under Filing and Payments. Choose one of the Free File Alliance members that comes up that meets your tax needs. Once you pick a company you’ll be transferred to the company’s website to work on and file your taxes. If you do not have Internet access at home, there are many locations across the country where you can use the Free File software.
2. Free Fillable Forms. There are no income limits when you (more…)
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This is a post by BargainBabe.com writer Yazmin Cruz.
Tax season is upon us and if you are contemplating doing your taxes to save money, think again. Doing your own taxes may not save you money, especially if you don’t know the difference between a tax credit and a tax deduction. Here’s how to find out if you should be doing you taxes or paying someone else to do them for you.
Consider this: If the time and money you spend doing your taxes costs more than hiring a professional, then (more…)
Start early, and your IRA will grow into a mature account. Credit: Rev Stan/Flickr
I want to give my little brother his very own IRA retirement account as a college graduation present. Just what every new grad needs!
He just started a new job and is working on creating a budget that fits his $513 a week salary. One of his main goals is to get his car on the road, but I’m gently trying to persuade him to buy a monthly bus pass and contribute to an IRA retirement account. This may well be his quickest way to become a millionaire. (In case you wondered, he said my post about his new budget was “legit.”)
I waited far too long to establish an IRA (mid-20s) and regret I did not begin contributing as early as possible. In fact, I don’t know of any age (more…)
A college student can be worth $2,500 under the American Opportunity Credit.
Last week I wrote about three educational and energy credits that reduce your taxes. I mentioned one deduction, too. So what’s the difference between a tax credit and a tax deduction?
A tax credit directly reduces the taxes you owe. So if you do your taxes and owe Uncle Sam $5,000, a $2,500 tax credit means you pay just $2,500 in taxes.
A tax deduction reduces your taxable income, which is what determines how much tax you pay. So if your gross income was $45,000, a $2,000 tax deduction means you pay taxes on $43,000.
In short, a tax credit saves you a lot more money than a tax deduction, so never skip a chance to claim a valid tax credit. Got questions? Leave a comment and I’ll do my best to answer.
