SavvySugar

In Case You Hadn't Noticed, It's April 15th

SavvySugar — Tue, 15 Apr 2008 09:34:01 -0700

There's a line out the door across the street from Sugar HQ - no, it's not a pack of people waiting to see the Sugar girls, it's procrastinators at the post office who are waiting to send their tax returns by certified mail! Are you one of those people? Don't freak out, but do make sure your return is postmarked with today's date. And if there's no-way no-how that you'll be able to get your taxes in today's mail, filing for an extension will give you an extra six months to pay the IRS.

You can get a new October 15 deadline by completing a very brief form called Form 4868, Application for Automatic Extension of Time to File. While you have more time to fret about filing your return, an extension won't give you an extension on paying the IRS if you owe taxes. You'll need to pay a close and reasonable estimate of your tax bill by today, along with your extension application.

Source

Tax Tip Round-Up

SavvySugar — Wed, 02 Apr 2008 13:02:17 -0700

April means different things to different people - Spring, the end of March Madness, Aries and Taurus birthdays, and most importantly, taxes! During the past couple months, I've been giving you little reminders here and there about completing your taxes and getting the most out of your refund. If you're one of many Americans who considers April's arrival the biggest reminder to do your taxes and are just now dusting off your W-2, I've rounded up all of my tax tips in one place for easy reference. Even though it's coming down to the wire time wise, you don't want to miss out on all possible deductions available to you. Once you're finished with your taxes, keep the momentum going and complete all of my April Must-Do's. To see all of my helpful tax tidbits just read more.

Tax Tip: Set a Date With Your Taxes

SavvySugar — Tue, 01 Apr 2008 06:46:40 -0700

I'm sure there are people out there that don't mind mulling over tax returns, after all, it's how some people earn a living. But if you're not one of those that can even look at a W-2 without a slight feeling of dread, you need to be sure that you're in the proper mind-set when you're finally posted up with your lap-top, W-2 in hand. If you're someone who's short on patience and lacking like for your tax return, you especially need to set yourself up for success when choosing a time to file your taxes.

The worst idea is to tackle your tax return when you have something to attend to after the time you've allotted for tax filing. Give yourself plenty of time to complete your return, because as with most things, it will probably take longer than you expect. Schedule an appointment with your tax return, just like you'd schedule a haircut. And do yourself a favor - don't wait until April 15th, or 14th for that matter, to complete your tax return. You want to make sure it's accurate so that you don't run in to trouble later and can get your tax refund as soon as possible.

Source

IRS Says Scammers Are Reaching For Rebate Checks

SavvySugar — Fri, 28 Mar 2008 13:09:22 -0700

While you already know when you're going to get your rebate check, some scammers are doing their best to get in their way of you and your check finally coming together. The IRS just issued the top 12 tax scams - usual suspects like phishing and hiding income offshore made the list, but this year scammers have been trying to squeeze money from the economic stimulus rebate checks.

The bad guys gather other people's financial information by convincing them it's the only way to receive their rebates. Imposters are pretending to be from the IRS and calling, sending emails, or going door to door in attempt to gather personal details. Remember that you don't need to fill out anything besides your 2007 tax return to receive your check - the IRS has made this much clear in its YouTube public announcement.

Source

Do You Know Which Tax Deductions Are Real?

SavvySugar — Tue, 25 Mar 2008 09:32:40 -0700

I've been on your case about getting your taxes off your to-do list so you can get your rebate check, and so you don't have to think about taxes until next year. Twelve months of bliss! If you've finished your tax return then you may have an edge taking this quiz since you've already dealt with deductions. If you haven't conquered the tax return monster just yet, then take my quiz so that you're all ready to go once you're in tax filing mode.

Source

Take the quiz

When to Expect Your Rebate Check

SavvySugar — Wed, 19 Mar 2008 14:28:05 -0700

The IRS has put together a schedule for when you'll be receiving your economic stimulus rebate check. The schedule is based on the last two digits of your Social Security number, so if you're filing jointly use the primary filer’s Social Security number to figure out where you fit on the schedule. It's possible that the IRS won't exactly meet the projected dates since 130 million households are eligible to receive the rebate check, but at least you can start planning ahead for that hefty credit card payment, savings deposit, vacation fund deposit, or shopping trip.

If you file your tax return and provide direct deposit banking information for the IRS to transfer your return, you'll be receiving your rebate check slightly earlier than those who receive their return in the mail. If you're unsure about your eligibility to receive any economic stimulus money, the IRS just introduced a calculator that lets you figure out if you'll be getting a check and the amount, if any. To see a handy chart that tells you when you're scheduled to receive your rebate check just read more.

Direct deposit payment

Last 2 Digits of SSN	Date Check Will Be Sent
00-20	May 2
21-75	May 9
76-99	May 16

Paper check

Last 2 Digits of SSN	Date Check Will Be Sent
00-09	May 16
10-18	May 23
19-25	May 30
26-38	June 6
39-51	June 13
52-63	June 20
64-75	June 27
76-87	July 4
88-99	July 11

Source

Money Tip: Revise Your W-4 to Save More

SavvySugar — Wed, 19 Mar 2008 12:57:07 -0700

If the IRS is sending you a big tax return this year it means that you had too much withheld from your paycheck during 2007. I know that many of you consider your tax return to be a forced savings account, so let's take that idea one step further. Considering you can afford to live without the money the IRS has been holding for you all year, why not direct that exact amount toward your retirement account?

Revise your W-4 so that you're having the correct amount of taxes withheld, and then average the amount of your tax return over 12 months. Increase your 401(k) contribution by this amount each month - you won't miss the extra money from your paycheck since it hadn't been going to your bank account anyway, and your future self will thank you. Already contributing up to the amount your employer matches in your 401(k)? Set up automatic deductions from your bank account to your IRA or savings account instead.

Source

Tax Tip: Deduct Your Job Hunting Expenses

SavvySugar — Wed, 19 Mar 2008 08:16:13 -0700

Did you know that some job hunting expenses are tax deductible? Remember, claiming all of the deductions for which you're eligible could very well reduce your tax bill. If you're someone who was job hunting last year then keep these points in mind when tackling your tax return.

Your job search must be for a position in the same field as your current job.
If you've taken a long break between walking out the door of your last job and embarking on a new job hunt, the IRS won't allow you to deduct any job hunting expenses.
Recent graduates don't qualify for these types of deductions.
If you've been contemplating starting your own business in the same field where you're currently working for someone else, your research costs could be deductible.

Source

Tax Tip For Married Couples

SavvySugar — Wed, 12 Mar 2008 10:55:40 -0700

Just because you've promised to be there for your guy through good times and bad, it doesn't mean that filing jointly is the best option for you. You want to pay the least amount of taxes overall, so make sure you run the numbers for filing jointly and separately before opting for one or the other. When would you consider filing separately? To be eligible for certain deductions, couples may benefit from this type of filing if one of you has large medical expenses or business expenses, or if one of you had significant theft losses.

It may be a good idea to ask for professional help the first time you file taxes after marriage to ensure that you're filing in such a way that will get you the lowest overall tax bill. Remember to check out our tax prep giveaway! When you're filling out your tax returns for 2007, keep in mind that your tax status is determined by your marital status on Dec. 31, 2007.

Source

What to Do With Your Tax Refund

SavvySugar — Mon, 10 Mar 2008 14:35:40 -0700

A whopping 59 percent of you said that you'd be happy if you got a fat tax refund, because it tricks you into saving more money than you would if the funds were left in your hands. And while I think your money would be better off earning interest in a high-yield savings account all year instead of the government earning interest on your money, there's no turning back the clock for your 2007 return. I'm sure you've been thinking of what do you with your tax refund, but to see my suggestions just read more

If you're carrying a balance on your credit card bill but you don't have an emergency fund that equals at least three months living expenses, save about a third of the refund and put the rest toward your debt. And if you're all set with your emergency fund or even if you're just off to a good start, but you've been struggling to crack away at your debt, this one's a no-brainer - put it toward your debt!

Being responsible with your money isn't exactly the most fun way to treat it right now, but it really does pay off later. Remember that the money you're getting used to be part of your paycheck and you worked hard for that cash. Try your best not to blow it on a big purchase that you normally wouldn't consider, especially if you're walking around with credit card debt or without an emergency fund for a rainy day.

Source