SavvySugar -- It Makes Sense.

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

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

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

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

Do You Know Your Tax Tid-bits?

SavvySugar — Sun, 02 Mar 2008 11:08:59 -0800

We all know the deadline for filing taxes is just around the corner — six weeks and counting! Taxes are a fact of life and there's no getting around them — how much do you know about the one thing we can count on to take place every April?

Source

Don't Be Afraid of That Letter From the IRS

SavvySugar — Sat, 01 Mar 2008 11:12:29 -0800

Usually, getting mail is one of life's small joys in my opinion. And since I've opted out from receiving credit card offers, I rarely see an envelope addressed to me. A return address labeled IRS might have me taking back any hope that paper mail weren't so out of mode, especially if it arrived out of the blue. That would probably make me a little nervous! But this time, the envelope arriving from the IRS won't be a surprise since they've issued a notice to be expecting their note. To see what 130 million households will soon be receiving from the IRS just

Would You Rather Get a Tax Refund or a Tax Bill?

SavvySugar — Fri, 29 Feb 2008 06:36:14 -0800

I had a conversation with a girlfriend last night about her W-4 withholdings — she wanted to make sure that she wasn't paying too much in taxes throughout the year because of an incorrect withholding election. Understandably, she doesn't want the government holding on to her money during the year, making interest on it and then ending up with a tax refund. If you're having too much tax withheld, money that could be earning you interest from investments or a high-yield savings account instead isn't working for you at all. But some taxpayers are uncomfortable with the prospect of owing taxes if they've underpaid throughout the year. Where do you stand? Source

Would You Rather Get a Tax Refund or a Tax Bill?

Fat tax refund — it makes me feel like a better saver!

Tax bill — at least the government wasn't holding too much of my money all year!

A moderate refund would be best, as in less than $20.

I have tax feelings to express! See my comments below.

Which Tax Preparation Software Do You Use?

SavvySugar — Tue, 26 Feb 2008 09:31:37 -0800

It's almost the end of February, which means it's almost March, and that's the month before your taxes are due! If you're someone whose finances are relatively simple, meaning you don't have complicated investments or deductions, you can most likely get away with using an online tax service rather than seeking out human help. Many online services guarantee that you'll receive the maximum return, and because you're filing online your refund can be deposited between eight and fifteen days! But I think the biggest benefit is that the system will retrieve last year’s return for you if you're using the same service, meaning you don't have to dig through paperwork that may or may not be organized. Not everyone is eligible to use the freefile system that the IRS offers, because it's designed for those who earned an adjusted gross income under $54,000 in 2007. So, which tax prep service do you prefer? Source

Which Tax Preparation Software Do You Use?

TurboTax

H&R Block TaxCut

TaxAct

IRS freefile

Other. I'll tell you how I do my taxes below.

I'm Asking: If You Could Tax Anything, What Would It Be?

SavvySugar — Thu, 14 Feb 2008 12:27:36 -0800

Taxes seem to be everywhere we turn lately — from our still unopened W-2 reminding us to do our taxes to politicians on the news touting their best tax ideas to solve our problems. A writer for the New York Times got creative in his article, "A Fairer System: Tax the Annoying," where he suggests taxing things like spam mail and friends and family junk-chain emails. So if you could tax anything in your life, what would it be?

Source

News Flash: Bush Signed Economic Stimulus Package

SavvySugar — Thu, 14 Feb 2008 04:03:20 -0800

While the idea of an economic stimulus package was introduced last month, the bill was just given the final sign-off yesterday by President Bush. He's calling the $168 billion package a "booster shot for our economy" and the bill includes rebates for individuals and tax breaks for businesses to promote spending by all. The checks will start going out in May but you have to file your 2007 tax return before you get the check. After you've filed your taxes there's nothing else you need to do to get your check, and if you receive your tax return through direct deposit than you'll get your rebate the same way. Now that we know the rebates are a sure thing, I'd like to know how you'll put yours to use — spend, save, pay off bills or invest?

Source

Are You Paying More Taxes Than You Should?

SavvySugar — Wed, 13 Feb 2008 14:36:49 -0800

Tax time isn't something that we generally cheer about, but knowing that you're not overpaying the government might make the whole thing a little more pleasant. Kiplinger's put together a list of the 13 most-overlooked tax deductions — check them out to make sure you're deducting everything you can!

State sales tax: This is mostly beneficial if your state doesn't impose an income tax. Figure out your deduction with the IRS sales tax deduction calculator.
$250 educators' expenses: If you work in a classroom and spent money on books and supplies last year, you can deduct up to $250 for these purchases.
College tuition: If you forked up college tuition payments last year for yourself, your spouse, or a dependent then you may be able to deduct up to $4,000.
Student loan interest paid by Mom and Dad: If your parents paid student loan interest on your behalf and they don't claim you as a dependent, you can deduct up to $2,500 for any interest paid by your parents.
Out-of-pocket charitable contributions: For example, ingredients for bake sales or stamps you bought to send out fundraising letters.
Moving expense to take first job: If you moved more than 50 miles to live closer to your first job, you can deduct moving costs including 20 cents a mile, parking fees, and tolls — even if you drive your own car.

There are seven more on the list, so just

Money Tip: Free Tax Advice For One More Week

SavvySugar — Mon, 21 Jan 2008 12:22:36 -0800

The way January has been flying by, April 15 will be here before we know it. There are two services offering free tax advice until Jan. 31, so you should take advantage of them while you can.

Submit a tax question online at Turbo Tax, and a tax professional will call you within 48 hours. They'll give you up to 20 minutes of tax talk.
H&R Block's service is basically the same deal, but they give you the option of communicating with a tax professional over email or phone.

Source

Return Address: IRS

SavvySugar — Fri, 11 Jan 2008 08:55:57 -0800

Okay, so it might not be a love letter from that guy — what's-his-name-with-the- gorgeous-blue-eyes — that you've been waiting for since you last saw him on New Year's Eve 2000. Taxes really don't ignite any excitement but you need to deal with them, and now's the time to get fired up!

For those of you that haven't adopted filing your taxes electronically, your tax returns are in the mail. The IRS says that it mailed 16.5 million 1040 packages to the taxpayers that usually file paper returns, but the goody-envelopes don't include any of the five AMT related forms.

I'm assuming that most of you file your taxes electronically, so you won't be getting anything from the IRS saying that now is the time to start on your taxes. Take this as your reminder to start getting organized! Do you use a tax service like H&R Block? Make an appointment now before their time slots fill up like the best restaurants — you know, the ones that only have reservations for 5:00 pm? Hop to it!

Source

Tax Returns Delayed For Some

SavvySugar — Tue, 08 Jan 2008 04:06:15 -0800

If 2008 is the first year you've thought about filing your taxes on the early side, you might have picked the wrong year to be proactive. For most people, the IRS will begin processing tax returns in mid-January as usual. But, if you're someone that plans to file any of these five AMT-related forms, you'll have to wait until February to file your tax returns.

Form 8863, Education Credits
Form 5695, Residential Energy Credits
Schedule 2, Child and Dependent Care Expenses for Form 1040A filers
Form 8396, Mortgage Interest Credit
Form 8859, District of Columbia First-Time Homebuyer Credit

If you don't recognize any of these forms, than proceed filing your taxes early and pat yourself on the back for being on top of your game. The reason for the delay is the enactment of the alternative minimum tax "patch," and the IRS needs time to update its systems to reflect the policy changes. The patch affects about three million people; are you one of them?

Source