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...]
Freedom Industries files for Chapter 11 bankruptcy relief
January 20, 2014 by
It is probably not surprising to many that the West Virginia company responsible for the chemical spill that caused widespread water contamination filed for protection under Chapter 11 of the Bankruptcy Code last week. Bankruptcy Court documents revealed that the company is estimated to be worth between $1 million and $10 million but has liabilities within the same range. More details will follow with the filing of more complete bankruptcy forms. The chemical spill affected 300,000 people and … [Read more...]
Tips for getting your insurance claim paid
January 17, 2014 by
None of us like to deal with insurance companies but especially when they give us grief over a valid insurance claim. Typically, we have already had to deal with whatever circumstance caused the need to file a claim (i.e. car accident, problems with our home, etc.) and dealing with a claims adjuster and the insurance paperwork is just too much to handle. However, there are things you can do to help ease the process like knowing exactly what is covered rather than accepting what the insurance … [Read more...]
Will new mortgage rules simply the process for borrowers?
January 17, 2014 by
The Consumer Financial Protection Bureau aims to use new rules to take the mortgage loan process back in time prior to the housing crisis. With new rules designed to simplify the mortgage process and make it more transparent, they hope to create a safer mortgage market to prevent mistakes that lead to the housing and mortgage crisis. CFPB’s director said that these rules would use “basic building blocks” to return to responsible lending and customer service. To read more about the new … [Read more...]
What do I need for my bankruptcy consultation?
January 16, 2014 by
Filing a bankruptcy case requires a lot of information; however, your bankruptcy attorney will help you by walking you through the process and advising you what information you need to provide to the court. During your initial bankruptcy consultation, the attorney will need key information such as your current income, household expenses and other information relative to your personal finances to give you the best advice regarding a bankruptcy case. While many law firms have a customized intake … [Read more...]
