MSN Money has a great article on some common tax deductions people overlook. Now is the time to start getting your paperwork ready for the 2009 tax season. Individual tax returns can be very tricky this year, considering all the changes in the tax code and government assistance.
Here are a few of my favorite 2009 tax deductions from the article to pay close attention to. Be sure to talk with your tax advisor about these:
- State Sales Tax: State sales tax can be deducted, especially in those states who do not have an income tax. There is a standard deduction which works for most people. However, if you made a big purchase in 2009 like a car or boat, you are good to go. Homebuilding material is also deductible.
- Job Moving Expenses: If you moved more than 50 miles for your first (or any) job, you can deduct moving expenses. This includes mileage if you drove yourself, parking fees, and tolls. With 2009 unemployment being so high, those who were able to get a job should take advantage of this tax deduction
- 2008 state tax: If you owed 2008 state income tax, then you can claim this amount on your 2009 taxes.
- Refinancing Points: You can deduct a percentage of your points paid for your home if you refinanced in 2009.
- Make Work Pay: Part of the economic recovery act(s) of 2009, this was a reduction in payroll taxes. Be sure to claim for yourself and your spouse if married, in order to get the 2009 tax deduction of $400 or $800 dollars
Any other tax deductions that you can think of that can be overlooked? Good luck to all in the 2009 tax season.
Remember that taxes don’t have to be this hard. Have you heard of the FairTax? This would eliminate the income tax system and instead replace that revenue with a retail sales tax (completely different than the VAT). Having the FairTax would simplify the tax system (you only pay taxes on new retail goods) and generate income from those who avoid the current system (illegal immigrants, black market) and bring the money currently overseas back to the US.
You can read more about the FairTax here.
MSN Money has an article about property taxes that was an interesting read I wanted to share. Property taxes are a big source of revenue for your government and they are going to make sure to get theirs. Property values skyrocketed in the mid 00’s, but now they have tumbled with the current recession. What hasn’t tumbled, however, are your property taxes. In most places, they have actually increased, even though employment has ballooned and housing prices tumbled.
So, what can you do about it? Well, you can either agree with what you are assessed, or you can try the following:
- Contact Your County Assessor: These guys set the prices, and you can file an appeal through them. Be warned you may have to take a day off and go to their office directly.
- Know Your Neighbors: Keep track of the costs of houses selling in your area. Most counties have online search tools, or you can use other websites to help. Zillow is one that is useful in my neck of the woods. Having a list of similiar selling prices is great ammunition to fight the claimed value from the county.
- Be Careful: It’s not out of the question that they come back and say the value is even higher. There is a difference between market value and property value. Assessments tend to be a little lower than what the selling price could be.
If you are feeling the pinch of government trying to squeeze an extra dollar (or more) out of you through your property taxes, take action! Don’t be afraid to challenge their estimates or go up against the tax man. Revenues are being lost and raising tax values on property is a very easy way for them make up those losses.
Basically Free Personal Finance Books
May 27 2009
Posted by TS in books, lower my bills, personal finance links |
Maybe you are like me and like personal finance, you read about savings, investing, budgeting, etc. However, you run into a really big problem and that’s this – How come I’m paying money to read about saving money? Seems kind of silly right? Well Jim at Bargaineering has recently made a major upgrade to his website. He’s added a free store.
The Bargaineering store is an auction based system that is is bidded and paid for by Bargaineering Bucks and not cash. How do you earn BBs? It’s quite simple. Just read Jim’s blog (I suggest the RSS feed) and put your mark on the stories by leaving a good comment. Each time you leave a comment, you’ll get one BB. Become a regular reader/contributor to Bargaineering and you’ll get a nice stack of bills to chase after these books. You can also win ING Direct referrals, which is the easiest money to get. Those links go like hot cakes on Jim’s site.
So Jim gets more readers and a variety of contributions to his site and you get the chance to win some free stuff. Word of warning – don’t spam his site. Odds are you’ll end up getting booted and lose your money. If you have something meaningful to say and contribute to the site then leave a comment.
Personal thanks to all the men and women who have served and who may have lost their lives protecting the individual freedom and great life than many of us all to often take for granted. I thank you and salute you!
Here are some Memorial Day articles to check out:
Photo courtesy of MSNBC
The Financial Nanny is a new blog out there focusing on personal finance. Her career is being a professional nanny, but she has had many money adventures over her years to provide some good stories and advice. The blog focuses on giveaways, saving money, being financially sound, and some basic fiscal responsibility. Please take a moment and view her blog and sign up for the RSS feed.
It’s carnival time! This week’s carnival is brought to you courtesy of earn what you spend. My article on swine flu made the cut. Who knew financial and health safety can go hand in hand? Check out the carnival and check out my favorite picks of the week. All the submissions are worth something, I just happen to enjoy these:
- Mighty Bargain Hunter shakes the rattle of Generation Y.
- Dividends Value brings up that underfunded pension plans could be the next financial F up.
- Darwin’s Finance shows off my favorite graphs on saving money early. It doesn’t get any easier than this.
- That One Caveman brings up 8 things that new parents do not need. Stuff still does not equal love.
- 401k Planning answers the basic but important question of “how much do I need to contribute” for 401ks.
Also spend some time and check out this week’s host.
Swine Flu and Financial Security
May 04 2009
Posted by TS in credit cards, lower my bills, misc, quotes |
The Swine flu, also known as the h1n1 virus, is the latest pandemic to hit the news. Now, my $.02 view on this (and I have zero medical history besides watching Grey’s Anatomy) is that the scare, for the US, is just that – a scare. The news has scared everyone into thinking that this swine flu is the second coming of the black plague. Well, most recent news is that the swine flu virus is no more dangerous than the regular old flu.
I couldn’t help but draw a parallel between swine flu news and personal finance. When emergencies occur in both the medical and financial world, it pays to be prepared. Here are some ways to protect yourself from the h1n1 virus or swine flu:
- Wash your hands.
- Avoid touching your eyes, nose and mouth.
- Cough in your sleeve or tissue and dispose of immediately.
- If you do feel sick, seek medical attention and get help.
These four precautions and steps for swine flu avoidance are very similiar to handling your day to day budget. Here is my list of equilavent solutions to avoid a monetary swine flu:
- Know your spending. Just like washing your hands, you have keep track of where your money is going and what it is touching.
- Avoid excessive spending. Buying that $2.50 Coke at Bob’s Quick Stop is like picking your nose. Sure, it might feel good at the time but the feeling is short lasting and you end up with a booger on your pointer. Plan your spending wisely, just like plan on bringing some pocket wipes to help that booger habit.
- When you do have a cough or bump in your finances, make sure it does not spread into other areas. Confine your emergency to one area. Use your emergency fund (aka tissue) to stop the advancement of debt.
- If you find yourself financially sick – excessive debt, constantly borrowing, unable to pay for your basic needs, please seek help! Chances are that by yourself you can’t overcome this financial virus. Learn about financial planning, budget setting, and debt reduction from the experts.
The moral of the post is this – be cautious with your spending, prevent mistakes with budgeting, be prepared for emergencies, and if you do get the financial swine flu, get help.
Getting back to my Personal Finance Dictionary, I’ll be introducing a word that is very relevant to me.
Word of the day (WOD) is: underwater
Definition: Underwater is a financial term more commonly known as negative equity. Negative equity means that the value of a loan for a particular asset exceeds the value of the asset.
Common Use: This term is most often used when discussing the housing market. If you’ve just crawled out from a two year stint under a rock, the housing market has been tanking. What this means is that many people who purchased a home are now finding themselves paying back a loan that well exceeds the value of their house. This term is also used when talking about buying a new car, where the vehicle is worth “30% less” as soon as you leave the lot.
Sentence: Can you believe what’s going on with this economy? I looked up my house value on Zillow and it’s worth $40k less than what I paid for it last summer. My house is underwater and if the value drops much more I might have to look into foreclosure.
Free Retirement for Dummies book. You can get the e-book version or wait and get the hard copy. Found this courtesy of Free Money Finance. You should visit his site, sign up for his RSS feed, and join his newsletter. There is also his Twitter feed.
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