Tax tips
February 25, 2009
We’re once again in the midst of tax season. Here is some information for people who are filing their own taxes as well as what do with a refund or what to do if you owe Uncle Sam:
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· There are some common mistakes people make when filing their taxes. Make sure:
1) To enter your Social Security number correctly.
2) That your deduction totals are correct.
3) That your withholding and estimated tax payments are on the correct lines.
4) To sign and date your return.
· Those who find themselves with a particularly large refund or shortage may want to adjust the number of allowances claimed for federal income tax withholding.
· Remember that some employers do not deduct local wage taxes. If an employer does not deduct this tax, the employee is responsible for paying this tax to the municipality where he or she lives. Generally this tax is 1 percent, but it may be less in some municipalities.
· People who receive a refund will have to decide what to do with that refund. Advantage CCS recommends using a refund to pay down debts or put the money into savings. Whether the money should be used to pay down debts or go towards savings really depends on each individual’s circumstance. Those who would like advice about how to handle their refund can contact Advantage at (888) 511-2227, and a certified credit counselor will help them go over their budget and determine the most prudent way to use their refund.
Do you still dine out?
February 19, 2009
I’ve been reading a lot lately about how people have been changing their spending habits in a variety of areas, but in particular when it comes to dining out.
I have been a bit perplexed by all of the articles I read that say restaurants are losing money. It seems to me that every time my husband and I dine out, the restaurants are crowded. It’s not unusual for us to have to wait for a table. The parking lots are full, even mid-week.
If people are still going to restaurants, the question then becomes: Have people changed how they dine out?
It seems more likely that people are still going to restaurants, but not ordering like the used to order. Maybe they’re skipping appetizers and dessert. Maybe they only have one beer instead of two. Maybe they order water instead of soda (or pop, if you prefer).
I’ve also noticed that some restaurants are offering better deals to entice customers.
Have you changed your dining out habits? What great deals have you noticed restaurants offering?
Choose reliable help to get out of debt
February 9, 2009
If you are in debt, or you know someone who is, there’s a pretty good chance you are looking for some assistance and professional guidance.
Getting help to deal with your debt and get your budget under control is smart. What’s even smarter is making sure you know exactly who you are doing business with and that you are working with a reputable company.
Television and radio stations are flooded with advertisements from all types of debt relief companies. One industry in particular that is advertising heavily is the debt settlement industry.
It is good to remember the old advice of, “If it sounds too good to be true, it probably is.” Some of these companies make lofty promises, but how can you be sure the company will keep those promises?
Before choosing to work with a debt settlement company, or any debt relief agency, please take some time to do some research. The tips below are good guidelines when it comes to working with a debt relief company.
Be wary of companies that:
· Cold call or solicit a consumer out of the blue.
· Charge high fees, especially if the fees are paid up front.
· Ask consumers to sign over power of attorney.
· Will not send free information about their services and fees.
· Encourage consumers to sign up for a plan or program immediately without first sending the consumer the program’s details in writing.
· Pay their employees based on commission.
· Don’t offer financial education as part of their plan or program.
When choosing a debt relief agency, consumers should look for a company that:
· Is a non-profit organization and preferably a member of the National Foundation for Credit Counseling, such as Advantage Credit Counseling Service.
· Is in good standing with the Better Business Bureau.
· Is accredited.
· Discloses information about the fees and details of their plan or program in writing before requiring a consumer to sign up for anything.
· Offers a comprehensive financial education as part of their plan or program.
· Adheres to any state or federal laws, including licensing requirements.
You can check a business out with the Better Business Bureau at www.bbb.org. There are also a number of consumer-oriented web sites that offer information about companies.
Internet service may get more expensive
February 6, 2009
In an effort to cut back on expenses, some people have drastically trimmed their entertainment budgets. To make up for the lack of going out for entertainment, some of these people have chosen to stay in.
The internet has become a popular way for people to watch their favorite TV shows, download movies and get new music. With most internet providers offering a flat fee for the service, it’s a cheap entertainment alternative.
Apparently the days of paying a flat fee for unlimited internet usage are about to go the way of the Edsel and vinyl records.
I saw this story on MSN recently. Most of the major internet service providers are looking into new usage/pricing structures. The fees would be based on the amount of gigabytes you use each month.
(To be completely honest, I really have no concept of bits and bytes. But, the story provides some good examples of how much usage you would get on the various gigabyte plans.)
If you are a heavy internet user, it’s probably time start to take stock of just how much you use and what it could cost you, so that you can budget accordingly.
Stimulus checks causing tax time confusion
February 4, 2009
Apparently last year’s stimulus checks are causing quite a bit of confusion this year when it comes to filing tax returns.
According to an article on MSN Money, roughly 15 percent of taxpayers are mistakenly filing for a second tax rebate when filing their income taxes. This error delays the time it takes for taxpayers to get a refund check if they are owed a refund.
If you received a stimulus check last year, you are mostly likely not eligible to apply for an additional tax credit when filing your income taxes. There are some exceptions.
For details about who is eligible to claim an additional refund this year, follow this link to the IRS web site.
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