If you are dreading preparing your tax returns, you are not alone. Many of us dread the paperwork but choose to prepare our own returns each year. This is especially true for individuals who had only one source of income and take standard deductions. However, as more and more individuals prepare their own tax returns to save money on tax preparer fees, the IRS is seeing an increase in errors on tax returns. To help you avoid some common tax return errors, read, “8 Errors You're Most Likely … [Read more...]
Should you get a home equity loan?
January 24, 2014 by
In 2013, the number of new home equity loans rose by 30.8% in the first nine months of the year. This is due, in part, to the rise in home values as the real estate market continues to recover from the housing crisis. Even though you may qualify for a home equity loan, it may not be a wise decision. Before tapping into the equity in your home you should ask yourself three questions – “What am I using it for?” “What’s best a loan or a line?” and “Can I deal with the interest rate and the … [Read more...]
Keeping credit cards after filing bankruptcy?
January 24, 2014 by
The general rule of thumb for most banks and credit card companies is to cancel a debtor’s credit card account once it receives the notice of a bankruptcy filing. However, as with any rule there are exceptions. Whether you will be able to keep any of your credit cards after you file for bankruptcy relief will depend on the type of bankruptcy case that you file. It will also largely depend on the company that issued the credit card. For more information about credit cards after filing … [Read more...]
Can I file bankruptcy on taxes owed to the IRS?
January 23, 2014 by
If you owe back taxes, you may have been told that you cannot discharge or wipe out personal taxes through bankruptcy. However, there are circumstances where you may be able to discharge taxes owed to the IRS through a bankruptcy filing if you meet all of the requirements. For example, the taxes must be at least three years old and you must have filed the tax returns at least two years prior to the filing of the bankruptcy petition. For more about taxes and bankruptcy read, “Bankruptcy and … [Read more...]
New rules make it easier for homeowners to get appraisal information
January 23, 2014 by
A new federal rule will make it easier for homeowners and homebuyers to gain access to the information used by their mortgage lender when determining the amount of the loan that the lender will approve. Before the new rule, a mortgage applicant could only obtain a copy of the written appraisal by requesting it from the mortgage company; however, the mortgage company was not required to disclose other information it used in the evaluation process. The new rule will add much more transparency to … [Read more...]
Key tax changes for 2014 that you should take notice of now
January 22, 2014 by
Each year when we prepare to file our tax returns, we must deal with changes in the U.S. Tax Code. Just when we adapt to the new rules they change again making it frustrating for tax preparers and taxpayers alike. Even though you are working on your 2013 tax returns, several key changes to the tax code for 2014 may affect your tax return next year and are worth taking note of now. For example, the penalty for failing to comply with Obamacare and the new $500 carry-over for health care FSAs … [Read more...]
Divvy supplier files bankruptcy – – should not affect Chicago program
January 22, 2014 by
The Public Bike System Co., known as Bixi, based in Montreal filed for bankruptcy relief this week. Bixi is the equipment supplier for the company that operates Chicago’s bicycle-sharing program. Bixi has supplied thousands of bicycles, equipment and computer software to operate the city’s program which is managed by Alta Bicycle Share, Inc. out of Portland, OR. A city official said that the bankruptcy should not have a negative impact on the Divvy program. For more details read, “Divvy … [Read more...]
Get the most tax advantage out of your 529 College Savings Plan
January 21, 2014 by
Tax time is a good time to review you 529 college savings plans to get the maximum benefit from the money that you contribute. Even though we are now in 2014, some states will allow you to contribute money during the first quarter of 2014 and take a 2013 state tax deduction on those funds. However, contributing to the plans is only part of the overall strategy of using 529 plans. Stretching out tax-deferrals and sidestepping estate tax levies are other areas that you need to investigate to … [Read more...]
Did you receive the most feared tax form this year?
January 21, 2014 by
It may not be the most feared but according to a Credit.com article, it can take you from overjoyed refund to tearful amount owed if you received it this year. IRS 1099-C is the form used by creditors when they forgive debts of $600 or more. The creditor is required to file a 1099-C with the IRS and the taxpayer is required to report the amount as income on their tax returns (with very few exceptions). Instead of panicking, you should first determine if you qualify for an exemption. For … [Read more...]
Tax mistakes people make when they owe Uncle Sam
January 20, 2014 by
For those of us who will receive a huge tax refund, we are overjoyed to see tax time roll around. For the rest of us, we hate it! However, if you do owe taxes this year, ABC News published a slideshow about stupid tax mistakes people make that might help you avoid making tax time even more costly. For example, people who owe taxes and avoid them by not filing a tax return will get hit with double penalties - - one for owing and not paying the tax but also a penalty for not filing a tax return … [Read more...]
