Queercents

We’ve reached the final installment of our Money Mondays series! With a little more than 24 hours to go, today’s article brings us into the home stretch.

For those of us just starting our tax returns, be careful. The most common tax mistakes occur when we are rushed for time. Simple calculations and not double checking basic math are culprits! Consider joining the 9.9 million taxpayers who will file 6 month auto extensions this year. Form 4868 is simple, not even a full page.

The IRS urges people filing extensions to do so electronically. It allows the IRS to process your request faster, and allows you to track your request with a confirmation number. Use the Free File Alliance network of IRS recommended companies.

Did you finalize your taxes only to realize you owe money? Read the rest of this entry »

Most of us fall into one of three belief categories about retirement planning. The first, as if retirement were a magical time with no work, no worries, and no problems. The second, a time of life confined to budgets, limited income and medical bills. Or the third group, those of us in the middle, trying to learn as much as we can.

INDIVIDUAL RETIREMENT ACCOUNTS (IRAs)

When it comes to retirement accounts, we are lucky to have several options. The most common is an Individual Retirement Accounts, or IRA. There are two main benefits to contributing to an IRA. Read the rest of this entry »

Welcome to the eighth installment of Money Mondays. Today’s article introduces financial retirement issues.

The key to retiring comfortably is simple, no matter how you define “comfortably”. Getting there is not quite as simple. In order to accomplish retiring comfortably, you will want to project your needs and implement a plan. Track your performance and you’ll hit your financial goal.

The formula would look like this: Read the rest of this entry »

Don’t stress out–the week didn’t fly by that quickly. It is Wednesday, March 28th and I decided to add a bonus article to the series. Keeping this one from Queercents readers is a disservice!

In outlining the articles for this series, I contemplated writing about IRS audits. I chose not to include the topic because audits terrify most of us. The thought of being audited makes us freeze and stop in our tracks. The Money Mondays series is specifically designed to be informative and supportive. I didn’t want to introduce information that might make us tighten up and clench our jaws.

Well, last week I was called upon by fellow blogger, Kay Bell of Don’t Mess With Taxes. A self-proclaimed tax geek, journalist, and entrepreneur, Kay was integral in launching the tax channel of Bankrate.com. She had been reading and enjoying our site, was writing an article on tax audits, and wanted to interview me. I bit at the chance to share my point of view.

Today, Kay published a three page article titled Tempting the Tax Auditor. Of all the IRS audit articles I have read, this is hands down the most informative and well written! It is factual, helpful, and supportive. Kay’s article is NOT written with the critical, often judgemental, tone of many finance writings. Her style mirrors my goal for Money Mondays! Her article addresses:

• The different types of audits
• How many returns will be audited this year
• Items that may draw attention to your tax return
• Tax software benefits related to audit issues
• How to proceed if you receive notice of an audit

Please visit Bankrate.com for todays headlining article and share your audit stories below. Thanks for reading the series and check back for more…. Money Mondays!

The cost of starting a family is astronomical, no matter which route you take. Nina has published several posts about the lengths we take to bring children into our lives. I did a double take at some of the figures she mentions. Despite the high price tag, I believe children are worth every penny.

We consider hundreds of factors when we think of expanding our families (with children, not pets). We question our capacity as parents and analyze our fears and doubts. However, we don’t usually consider our taxes. Read the rest of this entry »

I was raised to believe adult life follows a specific course. You meet your love, get married, buy a house and raise kids… in that order. We’ll it hasn’t quite gone that way. I fell in love, we bought a house, then registered our domestic partnership (as close to marriage as we can get at this point) and we’ve yet to decide the kid factor.

I quickly learned the fairy tale doesn’t mention money or the financial aspect of living. It definitely doesn’t mention the benefits of homeownership. So to continue where the fairy tale leaves off…here are some points to keep in mind:

MORTGAGE INTEREST

Mortgage interest is any interest you pay on a loan secured by your home. It can be your main home or a second home. The loan may be a mortgage to buy your home, a second mortgage, a line of credit, or a home equity loan.

Let’s use a $200,000, 30 year fixed at 7% for example. Over the life of the loan you will pay back the principal plus $279,017.80 in interest. Borrowing $200,000 ends up costing $479,017.80!

Fortunately there is one way to ease the blow of the extra expense of borrowing money. Mortgage interest is deductible. It can be your fairy godmother at tax time. Read the rest of this entry »

Welcome to the halfway mark in our Money Mondays series. We have more than 4 weeks until the April 17th deadline. That is plenty of time to complete the task of filing your federal and state tax returns.

Today’s article takes a look at the benefits of electronic filing, commonly known as e-filing.

Technology has transformed our lives in ways generations past could hardly imagine. It has opened our current world to that of our dreams. From our invaluable cell phones and home computers to recreational devices like iPods and GPS locators, we are harnessing technology in all aspects of our lives.

So how does technology impact filing our taxes? Through electronic transmittal. Our computers and internet connections allow us to complete and submit our taxes electronically. E-filing has improved the lives of millions of people. The AOL tax center reports “More than 70 million taxpayers electronically filed returns last year. It was another e-filing record and the computer-relayed returns accounted for well more than half of the total 1040s the IRS received in 2006.” The IRS statistics show 73 million returns were e-filed–of which 20 million were from home computers.While many of these returns were filed via tax professionals, hiring a professional is not necessary. Step #3 of the last weeks Money Mondays: Self Preparing your Taxes, provides detail about the IRS FreeFile option.

In the past, IRS staff would manually enter each tax return into their computer system, thus creating an electronic file. E-filing removes a layer of work and there is less room for natural human error. This sole reason prompts many of us to e-file. Here are a few more reasons e-filing may be the best option for you. Read the rest of this entry »

Today’s installment of Money Mondays focuses on self-preparing your taxes.

Many of us prefer to complete and file our taxes ourselves. While it can be risky (errors can lead to penalties and late fees) the benefits of self-preparing can be great. You will definitely become more familiar with your finances and may even save money on tax preparation fees. But where do you begin? Getting started can be overwhelming and confusing so here is a step-by-step guide to self-preparing your taxes this year.

STEP-BY-STEP GUIDE

1. Gather your documents. A lot of people experience frustration because of unorganized paperwork. Last weeks Money Mondays provided detailed information to help you get avoid this frustration.

2. Decide if you will manually prepare your taxes or use a computer software program. This depends on your preference. If the thought of filling out paperwork makes you tense, consider using tax preparation software. They often provide interview questions to obtain your data and plug those figures into the proper places on your tax forms. Read the rest of this entry »

Welcome to the third installment of Money Mondays. For those of you joining our series, we’ve covered should you hire a tax pro & choosing a tax professional.

Today’s article focuses on getting organized and gathering your tax documents.

ORGANIZING
Organization is the key to easy and efficient tax preparation. It would be awful to have your first choice of tax preparers turn you down because you are disorganized. Your tax preparer may charge additional fees for having their assistant sort your receipt shoe box. Read the rest of this entry »

Welcome to the second installment of Money Mondays“your 2006 tax season guide. In last week’s Money Monday we looked at determining your needs. Should you hire a tax pro? Today we’ll assume you have decided “yes”.

We expect our stylists to be current with fashion trends, our medical providers respectful of our partners, and our legal council well versed in LGBT issues. We also expect the same level of respect and support from our tax preparers. But how do you choose the right tax professional?

If this seems like a daunting task, relax. Don’t resort to flipping a coin. Today you’ll learn the ins and outs of choosing a tax preparer. I will break it down logically, step by step.

YOUR REQUIREMENTS

1. Know a little about your tax situation. Look at the return you filed last year for guidance. Familiarize yourself with the various forms you used.

• What is your filing status?
• Do you have any dependents?
• Are you filing a personal tax return?
• Are you self-employed?
• Are you a member in a business partnership?
• Or are you the owner of a corporation?

2. Identify whom do you work best with. Think of the personality types and styles you are most comfortable with. Our finances are very personal and confidential. You want to be relaxed and uninhibited when talking with your tax professional. Consider the following: Read the rest of this entry »