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Entry bubble Answering Income Tax "What Ifs"

By: Jake | February 09, 2009 | Category: Money

Tax prep photoAs Jess's post last week demonstrated, people are busy preparing for the 2009 tax filing season. Unfortunately with the economic downturn, a lot of people have fallen into "what if?" situations as they tackle their Internal Revenue Service forms. A "what if?" would include situations where you dipped into your IRA or lost your job.

Last week a colleague forwarded me an email from the IRS explaining people can answer many of these "what ifs" by searching the IRS homepage. I went ahead and did the searching for you and created the list of links below to help answer your "what ifs?" If by chance you have more "what ifs," contact the IRS or leave me a comment and I'll see if I can answer it for you.

Job Related

What if I lose my job?
What if my income declines?
What if I withdraw money from my IRA?
What if my 401(k) drops in value?

Debt Related

What if I lose my home through foreclosure?
What if I sell my home for a loss?
What if my debt is forgiven?

Tax Related

What if I can’t pay my taxes?
What if I can’t pay my installment agreement?
What if I can’t resolve my tax problem with the IRS?
What if I need legal representation to help with my tax problem but can’t afford it? 

| Post a Comment | View Comments [7] | envelope E-mail This Entry | Tags: economic_downturn   income_tax   jake   job_loss   taxes   unemployment  

 

Entry bubble Filing taxes in two states

By: Jess | February 05, 2009 | Category: Money

taxesMoving from Pennsylvania to Maryland a few months ago was a little bit stressful because of the distance and the date my previous lease ended and my new one started. I had thought that after I finished sleeping on a friend’s sofa and was in my own place, my moving stresses were over.

But I hadn’t thought about taxes and how the move would affect that.

Like many other people who moved this year, I have to file tax returns in two different states. I’ve never filed a single tax return before, so I’m a little bit nervous and had lots of questions.

Though my parents offered to help me with the Pennsylvania taxes, I was responsible for finding all the necessary forms.

It was a lot easier than I thought to find what I needed. The Federal Tax Administrators have a map linking to each state's tax information. The only form that was a little tricky was the municipality tax form for Manchester Township in York, Pa., but a lady at the tax office gave me the exact number of the form that I could print right from the Web site.

Maryland’s tax forms were even simpler because the county tax is included right on the state tax form, which meant I only needed to track down one.

Now it’s just a matter of filling the forms out, sending them in and figuring out what to do with my return check.

I’m thinking a mini-vacation may be in order.

| Post a Comment | View Comments [3] | envelope E-mail This Entry | Tags: jess   maryland   pennsylvania   pueblo   taxes   usa.gov  

 

Entry bubble Thanks to the Folks at the IRS

By: Ginger | January 30, 2009 | Category: General

Person filling out tax formMy husband worked for the IRS for 10 years. At social gatherings people would ask him what he did and he would say, “I work for the IRS.” Typically someone would respond with negative comments about taxes, the IRS, or the government, in general. My husband would politely listen to the comments. One time, this person began ranting at him as if he, as an IRS employee, was personally pocketing all the tax dollars collected to buy a Porsche and some bonbons. The look in my husband’s eyes said he’d had enough. Not known for holding back when he is annoyed, he proceeded to… well, let’s just say, nothing brings a friendly barbecue to a screeching halt like three simple words and a full moon in the middle of the day.

The thing is, most people think they pay too much in taxes—even IRS employees do—but our tax dollars are paying for services and programs that help all of us. Here are just a few examples:

The Department of Commerce, the Department of the Treasury, the Federal Trade Commission, the Commodities Futures Trading Commission, the Federal Reserve Board, the National Credit Union Administration, the Securities and Exchange Commission, and the Federal Deposit Insurance Corporation regulate financial and commercial matters. They assist consumers to protect their hard-earned dollars.

The Department of Transportation, the Federal Communications Commission, the United States Postal Service, the Department of the Interior, the Environmental Protection Agency, and the Department of Energy regulate infrastructure, utilities, and basic services.

The Department of Veterans Affairs, the Social Security Administration, the Department of Health and Human Services, Department of Housing and Urban Development, the Department of Labor, and the Department of Education are agencies concerned with the health, benefits, education, and welfare of our citizens.

The Department of Defense, Homeland Security, Central Intelligence Agency, Federal Bureau of Investigation, the Department of State, the Consumer Product Safety Commission, and the Department of Justice are concerned with the defense, protection, and safety of our country and our citizens either home or abroad.

To see all of government’s services and programs go to USA.gov.

If there are some out there who would like to tell me how poorly they think these agencies are performing, go right ahead. Your tax dollars support a democratic government that ensures you have the right to state your opinions and complaints. Are your tax dollars being well spent? What needs to be improved? What government services do you receive or know of that you think are well worth your taxes?

| Post a Comment | View Comments [17] | envelope E-mail This Entry | Tags: ginger   government_programs   government_services   taxes  

 

Entry bubble Resources for Seniors and Caregivers

By: Nancy | May 29, 2008 | Category: Home and Family

May is Older Americans Month. And while there are just a couple more days left in the month, as far as I'm concerned, people age 65 or better are worth honoring every day.

If you or someone you care about is in this age group, the information in USA.gov's Senior Citizens' Resources section can help make your life--and your loved one's--a little easier.

seniors picnickingAs time goes by, everybody thinks more about health. The Health for Seniors section is full of great resources to help in understanding Medicare's prescription drug coverage plan; dealing with changes in sleeping habits as you get older; and recognizing and managing depression. You can also use the drug interaction lookup page to find out how your medications, food and alcohol affect one another.

Money's important--especially when you’re on a fixed income. The Money and Taxes for Seniors section can help you with everything from creating or updating your will and estate plan to checking to see if, as a Social Security recipient, you're entitled to an economic stimulus payment this year.

Most people want to stay in their homes as long as possible as they age. See the Housing for Seniors section to find out how to make safety and other lifestyle modifications and to learn how to prevent falls around the house.

Seniors are common targets for scams. The Consumer Protection for Seniors section links to important resources like the Consumer Action Website to help you avoid getting swindled and learn how to fight for your rights as a consumer, and the Administration on Aging's Elder Rights and Resources page to help with legal assistance and advice.

Use the Education, Jobs and Volunteering for Seniors section to find out how using your years of experience and wisdom can help change your community or the world as you volunteer locally with Senior Corps, internationally with the Peace Corps or as you work for a company that values mature workers.

And if you're helping a senior family member or friend, use the Caregivers' Resources section to find out about respite and home health care agency options. Learn about providing long distance caregiving and getting support for yourself as you care for your loved one.

As a senior or a caregiver, what are some of the best resources you’ve found online to make your life easier?

| Post a Comment | View Comments [2] | envelope E-mail This Entry | Tags: health   money   nancy   safety   senior   taxes  

 

Entry bubble Tips for Income Tax Owers

By: Jake | April 07, 2008 | Category: Money

It's no fun owing income taxes. The same day I came home a proud college graduate I received a bill from the IRS for $500 because I forgot to claim some freelance writing payments on my previous year's return. Suffice it to say, my graduation money didn't go towards a nice vacation or new guitar.

It's no surprise to me that last year the IRS received 61 percent of balance-due returns (people who owe) after April 15. Many people will be at the post office on April 15 this year, submitting their balance-due returns and filing extensions (even though their estimated tax amount will still be due April 15).Tax Keyboard Key

If you owe taxes it is important to pay the whole sum right away to avoid penalties and late fees. The IRS accepts checks, money orders, cashier's checks, credit cards, cash and electronic funds transfer. If you e-file you can file your return and set your payment to be made by electronic funds transfer from your bank on April 15.

If you owe and you do not have the money to pay, the IRS has payment plans. The IRS actually recommends you use a credit card or bank loan to make the payment in one lump sum, rather than pay their rates. Generally, credit cards and bank loans have a lower interest rate, so you should check with your bank.

Those of you who are due a refund for 2007 have probably already filed since 73 percent of people who were due a refund last year filed before April 15. I got a refund this year and put it towards a new toy (hint: it's not the cat).

Be sure to check with your state government for income tax filing deadlines. The deadline to file federal income taxes for 2007 is Tuesday of next week.

| View Comments [5] | envelope E-mail This Entry | Tags: fees   penalties   taxes  

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