taxes Archives - Page 2 of 5

Where’s My Refund? How To Check Your Status With The IRS

Last year, I got enough money back from my tax refund to go on a trip to Las Vegas with my mom for a few days. I had a total blast! It was something I’d never done before and the experience was incredible- I even saw Cirque du Soleil and won $15 from a slot machine 🙂 Yes, I know, I write for a finance site, and there are definitely more responsible ways to use your refund (pay down debt, put into retirement, start an emergency fund, make an extra mortgage payment- the possibilities are endless), but I believe that spending money on new experiences is an investment. I regret nothing and am looking forward to tax season this year- which will be spent on smarter things. 🙂 I’m not counting on getting as much back this year, but even a little bit helps!

So, you’ve filed your taxes but are just waiting to hear back. How do you know when you’ll get your refund? Check out this article by Lisa Aberle at Get Rich Slowly for more:

–Considering the complicated tax code, I think it is amazing that this tool is called, quite simply,”Where’s my refund?” Anyway, you will need to provide your social security number, filing status, and exact — please note“exact” — refund amount in order for your request to be processed.

You can even use the official smartphone app of the IRS (IRS2Go) to check the status of your refund.

Photo Credit: Tax Credits

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Little Known Tax Deductions

by Kathy T.

Most people know the basics: getting married, having kids, charity donations, and business expenses are all things that will help you big time come tax season. However, there are tons of deductions out there that people aren’t claiming. Getting a tax professional to help you should cover most of them, but for those of us doing our taxes ourselves, this post at Turbo Tax will help a lot! Here are some things that most people aren’t aware that they can deduct:

-Sales tax for large purchases

-Health insurance premiums

-Tax savings for teachers buying classroom items

-Donating charitable gifts

-Paying the babysitter

-Self employed social security

Photo Credit: surlygirl

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Tax Deductions For First Time Buyers

by Kathy T.

Tax season is here! For most people, it can be pretty annoying. Having to enter all your income data for the whole year (especially for those of us with multiple jobs) and maybe even pay off government fees can be an ordeal. However, there are plenty of tax breaks you can take advantage of that you may miss if you are unaware of. Most of us know the basic ones- paying college tuition or loans, getting married, having children, owning a small business, etc., are all deductions that many people take advantage of. But, did you know that you can can a tax deduction for being a first time home buyer? If you bought a home in the past year, check out this post by Anthony Fontana at the Quicken Loans blog:

What can be deducted:

-Mortgage interest

-Mortgage points

-Property taxes

What can’t be deducted:

-HOA dues

-Closing costs

-Cost of repairs

Photo Credit: Chris Potter

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Friday Fun Video: How To Claim Your Home Office On Your Taxes

by Kathy T.

It is possible! Don’t shy away from possible tax deductions!

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Best Ways To Spend Your Tax Refund

by Kathy T.

Getting a tax refund is like being visited by Santa Claus as an adult. They only come once a year, so most people use them on frivolous purchases. And why not? It’s your money! But, there are smarter ways to use it than on useless junk. Whether you’re only getting back a little or a lot, tax refunds can be a huge help with normal expenses, debt payments, or even investments. This post by Kelli at The Freebie Finding Mom has some smart advice:

-Pay down debt: use it towards student loans, car payments, or credit cards.

-Build an emergency fund- start it out if you don’t have one already!

-Look at insurance needs- upgrade if you can!

-Plan for retirement- put it towards your IRA or 401k

-Plan for college- either for yourself or your children

-Invest- and help your money grow

So, playing a little with your tax refund is fine, but if you put most of it towards one of these other options, you’ll be much better off.

Photo Credit: Tax Credits

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Tax Breaks For New Homeowners

by Kathy T.

Besides being a huge investment, buying a home can save you in other ways. With home ownership comes a wealth of new tax side effects, and some of them can be extremely profitable! If you’re a new homeowner, you might not know all of the tax deductions that you can receive. Luckily, this post by David Bakke at the HR Block blog will help you out:

1. Home Mortgage Interest Tax Deduction: The most valuable tax deduction for a first-time home buyer is the mortgage interest tax deduction.

2. Points Are Tax Deductible

3. You Can Deduct Property Taxes

4. Private Mortgage Insurance is Usually Tax Deductible

Photo Credit: Images of Money

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Is Your Hobby Actually A Business?

by Kathy T.

…And how can you turn it into one?

Do you have a hobby that you like to do in your spare time? Most people do. Personally, I like to crochet, write stories, and tutor. I have friends that draw, paint, play music, make jewelry, bake, design clothes– the list goes on and on. If you have some sort of marketable skill like that, why not make yourself a profit? By selling your own products or skills, you can turn your hobby into a business. And business means profits – and tax breaks – for you! Check out this post by Kay Bell at the Bankrate blog for tips:

You can turn a hobby into a business if:

You carry on the activity in a businesslike manner. This includes, for example, keeping good books and records, promoting your business and holding down costs where possible. The IRS will look at:

How much time and effort you devote to the enterprise.

Whether you depend on income from the activity for your livelihood.
Whether the activity makes a profit in some years and, if so, how much.
If your hobby is sanctioned as a business from the IRS, you can get much, much more in tax breaks from it!

Photo Credit: Lorna Watt

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Getting Ready for Tax Season

by Kathy T.

Tax season is one of the most stressful times of the year. Putting together all your financial information from the last year and then probably owing a ton of money to the government? It’s a wonder why no one finds it very appealing. Sure, there are services and technology you can use to make it a little easier, but those tend to cost even more money. Instead, make your tax season easier by following these tips from Michael Lewis at Money Crashers:

Collect Pertinent Income and Expense Information. File it into Personal Information, Income, Personal Expenses (Deductions) and Business Information.

Review Tax Filings from Previous Years

Fund IRAs and SEPs to Allowable Limits

Automate or Outsource Tax Calculation and Filing

Photo Credit: Images of Money

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How to Claim Mortgage Interest on Your Taxes

by Kathy T.

I know, the holidays are barely over. Who wants to talk about tax time? No one. But, now is the time to start thinking of it, especially if you have a lot to pay off or claim. Did you know that one thing you can claim as tax deductible is the interest on your mortgage? You can! It’ll help you save more money and build equity. This article at WikiHow will walk you through everything you need to know, so you can start planning now:

At the end of the year, your mortgage company will send you an IRS Form 1098, or Mortgage Interest Statement, detailing the amount of interest you paid to the lender that year.
Either yourself or with the help of a tax professional, file IRS tax return Form 1040 and utilize the Schedule A to make “itemized deductions”. T
Make sure the amount entered on the Schedule A EXACTLY matches the figure on IRS Form 1098.

Photo Credit: Images of Money

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Tax Breaks for People Working from Home

by Kathy T.

While being able to work to your own schedule and in your pajamas are benefits in and of themselves, there are other advantages to working from home. Specifically, tax advantages. Working from home offers many tax breaks that you can claim that you wouldn’t have been able to by working outside the home. Susan Goodknight at WAHFreedom fills us in on what you can deduct:

When working from home you are able to deduct a portion of your mortgage interest, insurance and taxes. In addition to that you are also able to deduct a portion of your utility bills as well as repairs you might need to do.

You are able to deduct what you spend on your new business. So this means if you need to mail information out the postage is tax deductible. If you spend money on the purchase of leads or advertisements you will deduct this as well. If you take any trips related to your business or use your vehicle for business purposes they become tax deductible as well.

In case you needed any more incentive to begin a new work-at-home venture, here it is!

Photo Credit: David Martyn Hunt

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