Despite everything that is going on, please take a few moments to prepare for this year’s hurricane season. Listed below are some useful links with valuable information. Please pass on to your friends and family.
www.nhc.noaa.gov/HAW2/english/prepare/supply_kit.shtml
www.redcross.org/www-files/Documents/pdf/Preparedness/checklists/Hurricane.pdf
www.fox10tv.com/dpp/weather/hurricane/HurricanePreparednessChecklist
I recently read an article about what makes people feel rich. Immediately, I started to think about myself and my current financial situation. I am not a millionaire. I do not have rich parents and I have a 9 to 5 like most of the population. Sometimes my 9 to 5 feels like a 9 to 9. But you get my point.
Given the current economic state of our country, most people do not feel rich. The prices of basic necessities like food and gas keep rising and our paychecks are not increasing. I recently spoke to a friend who told me how his job temporarily gave everyone a 25% pay cut. When I asked about the pay cut, he told me that it was a either a pay cut or layoff. In this case the choice or lack of is pretty clear.
So what makes people feel rich? Many people that I know feel rich when they possess material possessions. The possessions can be anything from the latest cell phone or the expensive car. For others it’s having the biggest house on the block. Being rich is a state of mind. Some people feel rich because they are surrounded by loving family and friends. Growing up I always said that I am not rich in money but I am rich in blessings. I always had a roof over my head and a comfortable bed to sleep in. Like I mentioned before, I did not grow up rich. But I was rich in blessings.
As an adult, I have to now revisit the topic of what makes me feel rich. I now have bills and a mortgage. Do I still feel rich? The answer is yes. Having more financial responsibilities has not taken away from my feeling of being rich in blessings. I feel rich not only because of having a roof over my head and a comfortable bed. I also feel rich because I have choices and options. Every day that I wake up, I have a choice regarding decisions I will make and the course of actions that I will take. I feel rich because I have resources to guide my decisions so that I can make educated decisions. I feel rich because I choose to be debt free. I feel rich because I always have the option to start over fresh each day. All of these things make me feel rich.
What makes you feel rich?
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Disaster Assistance: English | Spanish
WASHINGTON — With the early start of this year’s hurricane season, the Internal Revenue Service encourages individuals and businesses to safeguard themselves against natural disasters by taking a few simple steps.
Create a Backup Set of Records Electronically
Taxpayers should keep a set of backup records in a safe place. The backup should be stored away from the original set.
Keeping a backup set of records –– including, for example, bank statements, tax returns, insurance policies, etc. –– is easier now that many financial institutions provide statements and documents electronically, and much financial information is available on the Internet. Even if the original records are provided only on paper, they can be scanned into an electronic format. With documents in electronic form, taxpayers can download them to a backup storage device, like an external hard drive, or burn them to a CD or DVD.
Document Valuables
Another step a taxpayer can take to prepare for disaster is to photograph or videotape the contents of his or her home, especially items of higher value. The IRS has a disaster loss workbook, Publication 584, which can help taxpayers compile a room-by-room list of belongings.
A photographic record can help an individual prove the market value of items for insurance and casualty loss claims. Photos should be stored with a friend or family member who lives outside the area.
Update Emergency Plans
Emergency plans should be reviewed annually. Personal and business situations change over time as do preparedness needs. When employers hire new employees or when a company or organization changes functions, plans should be updated accordingly and employees should be informed of the changes.
Check on Fiduciary Bonds
Employers who use payroll service providers should ask the provider if it has a fiduciary bond in place. The bond could protect the employer in the event of default by the payroll service provider.
IRS Ready to Help
If disaster strikes, an affected taxpayer can call 1-866-562-5227 to speak with an IRS specialist trained to handle disaster-related issues.
Back copies of previously-filed tax returns and all attachments, including Forms W-2, can be requested by filing Form 4506, Request for Copy of Tax Return.
Alternatively, transcripts showing most line items on these returns can be ordered on-line, by calling 1-800-908-9946 or by using Form 4506T-EZ, Short Form Request for Individual Tax Return Transcript or Form 4506-T, Request for Transcript of Tax Return.
Related Items:
Note. From Issue Number: IRS Tax Tip IRS-2012-60. Copyright 2012 by Copyright Holder. Reprinted with permission.
If you are like most people, saving money can be a bit challenging. Well how about splitting your direct deposit check amongst several bank accounts. The month of May is National Direct Deposit and Direct Payment Month. This is a great time to take advantage of the direct deposit option that many employers offer. Several research studies have been conducted that show that employees who have a consistent savings pattern tend to be better off. Direct deposit especially if split among two or more accounts, is a great way to get started. Other benefits of is that if you use direct deposit, you are less likely to waste your money. Every bit counts. Experts even recommend depositing just enough to cover the bills into your checking account. Then the rest can be deposited into a savings account.
I think direct deposit splitting is a great idea. It helps to develop a consistent savings pattern. Additionally, it also helps build discipline. Discipline is the foundation for financial health and security.
For more information, visit the NACHA website at http://www.nacha.org/.
I was reading an article about personal finance regarding which sex is better at managing the finances. The article mentioned that women are better at personal finance because we are more organized and pay more attention to detail. Although in many households, men are the bread winner, the husbands leave the budgeting and bill paying to the wife. Additionally, women are good at multitasking and are planners. We have the unique capability to take care of our households and take on additional responsibilities.
Although the survey found that women are better at financial management of the household, I do believe that budgeting and managing the household finances is a family affair. As I mentioned in last month’s blog. As equal members of the household, both spouses have a responsibility to understand and manage the family finances. This can be achieved through continuous communication. Additionally, both spouses should participate in the bill paying process and share in the responsibility of creating a budget.
With that in mind, who do you think is better at personal finances?
References: _____________________________________________________________________
fa.smithbarney.com/facilityfiles/sb004180_4489ff18-423d-e4e0-459e90b4f488f4b4.pdf
thefinancialbrand.com/2009/07/23/research-on-men-women-and-money/
I just had to share this article. Great advice for parents considering the current state of the economy.
http://www.smartmoney.com/spending/deals/8-ways-to-save-money-responsibly-on-baby-care/
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Many people look for help from professionals when it’s time to file their tax return. If you use a paid tax preparer to file your federal income tax return this year, the IRS urges you to choose that preparer carefully. Even if someone else prepares your return, you are legally responsible for what is on it.
Here are ten tips to keep in mind when choosing a tax return preparer:
1. Check the preparer’s qualifications. All paid tax return preparers are required to have a Preparer Tax Identification Number. In addition to making sure they have a PTIN, ask if the preparer belongs to a professional organization and attends continuing education classes.
2. Check on the preparer’s history. Check with the Better Business Bureau to see if the preparer has a questionable history. Also check for any disciplinary actions and for the status of their licenses. For certified public accountants, check with the state boards of accountancy. For attorneys, check with the state bar associations. For enrolled agents, check with the IRS Office of Enrollment.
3. Ask about service fees. Avoid preparers who base their fee on a percentage of your refund or those who claim they can obtain larger refunds than other preparers can. Also, always make sure any refund due is sent to you or deposited into an account in your name. Taxpayers should not deposit their refund into a preparer’s bank account.
4. Ask to e-file your return. Make sure your preparer offers IRS e-file. Any paid preparer who prepares and files more than 10 returns for clients must file the returns electronically, unless the client opts to file a paper return. IRS has safely and securely processed more than one billion individual tax returns since the debut of electronic filing in 1990.
5. Make sure the preparer is accessible. Make sure you will be able to contact the tax preparer after you file your return, even after the April 15 due date. This may be helpful in the event questions arise about your tax return.
6. Provide records and receipts. Reputable preparers will request to see your records and receipts. They will ask you questions to determine your total income and your qualifications for deductions, credits and other items. Do not use a preparer who is willing to e-file your return by using your last pay stub before you receive your Form W-2. This is against IRS e-file rules.
7. Never sign a blank return. Avoid tax preparers that ask you to sign a blank tax form.
8. Review the entire return before signing. Before you sign your tax return, review it and ask questions. Make sure you understand everything and are comfortable with the accuracy of the return before you sign it.
9. Make sure the preparer signs and includes their PTIN. A paid preparer must sign the return and include their PTIN as required by law. The preparer must also give you a copy of the return.
10. Report abusive tax preparers to the IRS. You can report abusive tax preparers and suspected tax fraud to the IRS on Form 14157, Complaint: Tax Return Preparer. If you suspect a return preparer filed or altered a return without your consent, you should also file Form 14157-A, Return Preparer Fraud or Misconduct Affidavit. Download the forms on the IRS.gov website or order them by mail at 800-TAX-FORM (800-829-3676).
Additional IRS Resources:
Note. From Issue Number: IRS Tax Tip 2013-07. Copyright 2013 by Copyright Holder. Reprinted with permission.
The IRS uses a variety of technologies to help you get the tax information you need. Here are six ways the IRS uses social media to share information on tax changes, initiatives, products and services:
1. IRS2Go 2.0 IRS’s smartphone application allows you to check your refund status, get tax updates and follow the IRS via Twitter. IRS2Go 2.0 is available in the Apple App store for iPhone or iPod touch devices and in the GooglePlay store for Android devices.
2. YouTube IRSvideos YouTube Channel offers short, informative clips on various tax-related topics. The videos are available in English, American Sign Language and Spanish.
3. Twitter IRS tweets include tax-related announcements, news for tax professionals and updates for job seekers. Follow us @IRSnews.
4. Facebook IRS has Facebook pages that post tax information for individuals, tax professionals, and for those needing help resolving long-standing tax issues with the IRS.
5. Audio files for Podcasts These short audio recordings provide information on tax-related topics — one per podcast. The audio files (along with transcripts) are available on iTunes or through the Multimedia Center on IRS.gov.
6. Widgets These tools, which can be placed on websites, blogs or social media networks, direct people to visit IRS.gov for information. The widgets feature the latest tax initiatives and programs and can be found on Marketing Express, the marketing site that allows IRS partners and tax preparers to customize their IRS communications products.
As a reminder, the IRS uses these tools to share information with you. Do not post any personal information on social media sites, especially your Social Security number or other confidential information. The IRS will not be able to answer personal tax or account questions on any of these platforms.
For more about IRS’s social media tools, visit IRS.gov and click on “Social Media.”
Note. From Issue Number: IRS Tax Tip IRS-2012-10. Copyright 2012 by Copyright Holder. Reprinted with permission.
I recently read an article about the rising debt of senior citizens. Senior citizens, I thought? Surprising, not really. Think about it. Senior citizens are on a fixed income unlike the younger generation. Their income does not keep up with the rising prices for food or anything else. Seniors are using their credit cards to pay for everyday items such as groceries and medical care. The article mentions visiting a consumer credit counseling service. Here are a few additional steps you can take to help a loved one:
· Set up a budget and evaluate where the money is being spent. The budget will help with organizing expenses and looking for excess cash reserves.
· Look for alternative sources of income. Perhaps your loved one can obtain a part time job to help with the excess bills.
· Shop around for better prescription prices or choose generic drugs. Wal-Mart has a prescription program where prescriptions can be purchased for as little as $4.
http://www.walmart.com/catalog/catalog.gsp?cat=546834
· Contact the credit card company and negotiate repayment terms. Right now is a good time to negotiate with your credit card company. Most of them are flexible and willing to negotiate with you in order to keep you as a customer.
What are your thoughts and what are you doing to help your loved one overcome their debt problem?
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As with anything else, it’s vital for military personnel to understand their tax rights and benefits. Too often many tax benefits are overlooked because military personnel are not aware of their rights. Among these are:
Your tax accountant is a great resource for understanding your tax rights and benefits. Additionally, IRS Publication 3, Armed Forces’ Tax Guide is also a great resource.
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