Financial Planning, Retirement Plan, 401k, Investment Blog

Financial Planning, Retirement Plan, 401k, Investment Blog

Tax Reduction

Three Most Often Missed Tax Breaks

Posted April 15, 2010 by Bernz

Many Americans prepare their own taxes in order to save money and to ensure that they have a good grasp of their financial situation.  However it can be a challenge to keep current with tax law and to understand the deductions that are available.  Many taxpayers miss opportunities to save money and pay fewer taxes.

Here are three of the most often missed tax deductions.

Non-cash Donations

It is easy to remember to claim cash donations on tax returns as receipts are issued by charitable organizations.  However many taxpayers do not remember to track the value of the goods they donate throughout the year.  Used goods donated to organizations like the Salvation Army and Goodwill can save you money in your taxes.  From the tax year 2007 forward, all noncash donations require a receipt.  Make a list of the goods that were donated and value each one.  There are several different ways to do this.  You can go into the stores and look at the prices they are charging for similar items.  You can also use programs like TurboTax’s It’s Deductible to place an approximate value on your items.  Keep in mind that the items have to be in good or better condition in order to qualify for tax deduction. (more…)

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Posted in Financial Education, Health insurance, Tax Reduction | No Comments »

Getting the Most from Your Accountant

Posted February 24, 2010 by Bernz

If you’re like most people, the only interaction you have with your accountant occurs at the end of the year at tax time. Most of the time, this exchange involves discussions about missing receipts, tax write-offs, and filing deadlines. It is rarely fun and, more often, painful.

A good accountant, however, can be worth his or her weight in gold- literally. Here are some important tips on choosing the right accountant and getting the most out of the relationship:

1) Choose a qualified accountant. The word accountant is not standardized or protected. Anyone can call themselves an accountant and it can be difficult to assess an accountant’s credentials. A Certified Public Accountant in the US or a Chartered Accountant in Canada and the UK, however, must undergo certain levels of education and examination to be able to use those titles. Selecting a designated accountant will give you comfort about the level of expertise your advisor has. (more…)

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Posted in Estate Planning, Financial Education, Financial Goals, Tax Reduction | 1 Comment »

Just another Tax Blog Post

Posted April 8, 2009 by Bernz

Well I decided to post another tax topic this week being the last week to file income taxes for most filers. Besides tax is probably the biggest unavoidable expense everyone needs to pay every year.

Here are some really basic tips which may be beneficial to you, although some of these maybe a little too late to avail of the deductions you are entitled to.

1. File Electronically – doing this will minimize errors and help you get a refund in two weeks. The tax- preparer are most likely filing e-files but you can do this yourself. The IRS has already partnered with preparers in order to provide free tax preparation and e-filing on the internet.

2. Child Tax Credit – parents can save a certain amount in taxes by having dependents. However, it is important to note that there are technical definitions about what constitutes as a “child”. In addition, if you are hiring someone to watch over a child under the age of 13, you can quality for child tax credit as well. (more…)

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It’s Tax Time Once Again – Tax Mistakes You Need to Avoid

Posted April 6, 2009 by Bernz

Using tax preparation software has a lot of benefits. It allows many people to submit accurate tax returns. However, it is important to remember that even one error in your computer can cost you a lot of money.

To give the right information to the IRS promptly, it is important to avoid the common pitfalls.

Here are some mistakes people commit every year during the tax filing season:

• Direct Deposit Pitfalls –Although it can help you save money on refunds, the chance of committing mistakes is also great. Giving the wrong routing number of account number can let you lose your refund completely. Make sure that you file every donation you have given for the past year. Follow the donation tax rules completely. Take note that the amount is only deductible if the organization has a tax-exempt standing with the IRS. (more…)

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