Is that you under all those papers, Joe Reisman? Do you need a hand? *claps loudly* Source: Picstopin.com
Telling Tips is a series of articles from local experts to help you save money, make better decisions and plan for a better future.
Note: While our venerable tax and financial matters columnist, Joseph P. Reisman, finds himself inundated beneath miles of piles of tax returns, I’ve culled through his newsletter to bring you more weekly helpful hints and sound financial wisdom. And, hey, you should sign up to receive that newsletter, too, because he also posts fun stuff that someone like me could appreciate, like a YouTube video for — what else? — “Taxman” by George Harrison.
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Source: ZoofyTheJinx (Penny Mathews) / Flickr
Telling Tips is a series of articles from local experts to help you save money, make better decisions and plan for a better future.
In my last article, I summarized four credits that New York State offers. Those were the Child and Dependent Care Credit, the College Tuition Credit, the Earned Income Credit, and the Empire State Child credit. Here are a few more many of you can take advantage of:
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Hooray! Moneeeeey! Source: 401(K) 2013 / Flickr
Telling Tips is a series of articles from local experts to help you save money, make better decisions and plan for a better future.
Most of us concentrate on lowering our federal taxes, but most states, including New York, have a number of important credits you don’t want to miss either. Here are a few of the New York credits:
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Tax Season is upon us. Feh. Source: UNLV Rebel Yell / Flickr
Telling Tips is a series of articles from local experts to help you save money, make better decisions and plan for a better future.
If you enjoyed playing a game as a child of jumping through hoops, you’ll really enjoy the rules to claim a charitable contribution on your tax return. In this area, unlike others in the tax code, the rules have been etched into law with no wiggle room.
The first thing you should do is verify that the charity is an authorized exempt organization. Go to www.IRS.gov, and type “Pub. 78 data” into the search box.
Cash Contributions
Under $250 (Cash):
Under audit, you need:
- A cancelled check, payroll withholding stub, or a credit card statement, or
- A written receipt or letter from the charity showing its name, address, the date of contribution, as well as the amount.
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Telling Tips is a series of articles from local experts to help you save money, make better decisions and plan for a better future.
In 2009, more than 26 million people received nearly $59 billion in earned income credits. Nice, right? Now, what if I told you that around 33 percent of the $59 billion distributed was fraudulent?
Due to this, the IRS is requiring tax preparers to verify, much more closely, that you are eligible for this credit. The tax preparer is subject to a penalty of $500 for each incorrectly prepared return; you are subject to governmental correspondence, and migraines, as well as having to return the money with interest and penalty, as well as not being able to claim the credit in the future.
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Source: Understoodbackwards.net
Telling Tips is a series of articles from local experts to help you save money, make better decisions and plan for a better future.
These are a few myths I hear during the tax season:
Students Don’t Have To Pay Taxes: Wrong. Anyone who works has a possible obligation to pay tax. Depending upon the amount earned, there may not be any tax, but just know that a student is not in a special ‘no-tax’ category. A summertime employer may incorrectly classify a student as an “independent contractor,” sending a 1099-Misc form at year-end. If this is received, and the amount is more than $400, there will be social security tax of 15.3 percent due on that amount.
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Photo by Erica Sherman
Telling Tips is a series of articles from local experts to help you save money, make better decisions and plan for a better future.
I have received a number of phone calls after my first article on the tax aspects of Hurricane Sandy. Here are the questions asked most:
Business Property, Including A Rental House: I stated in my earlier article that a personal casualty loss is subject to a $100 and 10 percent-of-AGI subtraction before any loss is allowed. If your loss is to business property, however, neither of these subtraction rules apply. You can claim the loss on your 2012 or your amended 2011 tax return.
Involuntary Conversion Gain: This applies whether you are a homeowner, renter or business. If the insurance company pays you more than the tax basis of your home, or vacation home, you might have a taxable gain. (Tax basis is usually your original cost, plus improvements, minus depreciation.) For example, if your vacation home cost $100,000, but the insurance company gave you $150,000, you have a $50,000 gain. The gain, however, is not taxable if you repair or replace the property with the proceeds, including the gain, and make a special tax election for the gain deferral.
For business property, these expenses must occur by the end of the second year of having the gain. For your principal residence — your main home for at least two years — you have four years to make the repairs or replace the property.
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The IRS. Yikes. Source: alykat / Flickr
Telling Tips is a series of articles from local experts to help you save money, make better decisions and plan for a better future.
1. Prevent theft of your refund. Millions of Americans are victimized every year, and many of those have their tax refunds stolen. If a thief has your Social Security number, a false tax return can be prepared in your name and a refund issued to them before you file. Once you have your paperwork, file immediately. If your Social Security number and refund have been stolen, it will take months to get your money. At an accounting meeting several months ago, every tax preparer said that at least one of their clients was a victim last year.
2. Reduce your stress. What will you owe? Many taxpayers wait until April to file because they owe, or think they owe. If you have a balance due, you will have time to gather the funds you need to pay. Tax law doesn’t demand you pay immediately. You can still wait until April 15 to pay (although you may be hit with a penalty). You can even prepare your return and tell your preparer not to file it until April 15. And don’t be so sure you owe, or what amount it might be. Several of my clients who were sure they owed, to their surprise, actually had refunds.
3. Need money? If you have a refund, you’ll have it much sooner. For example, if you haven’t funded your IRA, you can file early, and take the refund for your IRA. Remember, you have until April 15 to make that 2012 IRA contribution. Or you can use the refund to pay off that December credit card bill.
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Source: Bart Fields / Flickr
Telling Tips is a series of articles from local experts to help you save money, make better decisions and plan for a better future.
The IRS has sent an inquiry to Mr. and Mrs. Santa Claus concerning their non-filing of a US income tax return for a number of years. According to our best information, the Claus family, which lives at the North Pole, claims citizenship in the United States (via Alaska), Canada, Norway, Russia, and Denmark (via Greenland). A number of other countries have also honored the Claus family with citizenship, including China, India, Italy, Israel, and Brazil, just to name a few.
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It’s test time, people! Source: albertogp123 / Flickr
Telling Tips is a series of articles from local experts to help you save money, make better decisions and plan for a better future.
1. The area in lower Manhattan called ‘Wall Street’ is named after:
A: The Wall Street Journal
B: The wooden wall built by Dutch colonists to defend New York against invaders
C: The Wallapoo Indians who inhabited the area
D: George Washington, when he met with Congress in that area in the late 1700s and couldn’t get any legislation passed
2. How did the Dow Jones industrial average get its name?
A. To honor Dowelli Jones, the wife of the Revolutionary War naval hero, John Paul Jones
B. To honor Bradley McDow, the economist, and Garett Jones, the Macroeconomist
C. From Charles Henry Dow, Wall Street Journal founder, and Edward Jones, a statistician, who started an average of mostly railroad stocks in 1884
D. From the Dow-Jones land development company, which gave the land to build the New York Stock Exchange
See the next questions!
