Save Taxes with Last Minute Charity Donations

It’s not too late to get a tax deduction on this year’s taxes. You have until Janurary 31 to make any charitable donations which can be claimed as deductions on your tax return. Donations must be made to qualified charities in order to receive a tax deduction.

Donations you made to a political candidate are not eligible for tax deductions.  Clothing, cars, and other items donated to charity may be deducted. You may deduct the fair market value of these items. If you make a donation of $250 or more (in dollars or goods), be sure you get written acknowledgment from the charity or you may have difficulty using it as a deduction.

Looking for a charity to give to this year? The IRS lets you search for charitable organizations.

Or, here are a few we recommend:

National Public Radio

Greenpeace

Go spread goodwill, help your fellow man, and save on your taxes too.

Tags: car, charity, deductions, donations, greenpeace, IRS, national public radio, non profit, npr, Tax Tips

When should I expect my W2 tax form?

Your W-2 tax form will be mailed to you by the end of January. If you have not received your W-2 form from your employer by February 1, you should contact your employer and see what’s up. Maybe they mailed it to the wrong address?

If you still haven’t received your W-2 by February 15, you better give the IRS a call: 800-829-1040. When you call, make sure you have all your personal information together — address, phone, social security number, etc. You’ll also want to have a rough estimate of your earnings, dates of employment, and how much income tax was taken out.

Lost your W-2? Dog ate your W-2? Just contact your employer — they can replaced your lost form with a “reissue statement.” (Of course, they might charge you for it)

Remember, you need a W-2 (or a 1099) from all jobs you’ve worked in the past year. So don’t forget about that little stint as a circus seal wrangler you did six months ago — circus income is taxable income. And as for that circus, they still owe you a W-2.

Tags: 1099, circus, IRS, w2

How Much Do I Have to Make Before I Must File?

So, you found yourself a little part time job to fill in the hours of the day. But how much do you have to make before the government is knocking at your door with their hand out for their cut? Here are some helpful numbers! (numbers are so considerately helpful…and from 2007!)

Starting with you under 65ers:
If you are single and make less than $8,750 (gross that is)–YOU DON’T HAVE TO FILE! YAY YOU!
If you can consider yourself head of house and make less than $11,250–YOU DON’T HAVE TO FILE EITHER!
Married and filing jointly? $17,500 is your number as long as BOTH of you are under 65. Only one? (Hugh Hefner anyone?) $18,550 is for you.
Married and filing separate? No matter your age…$3,400
Widows(ers) with a child have to make more than $14,100 before they have to file.

Over 65:
Single–$10,050
Head of House–$12,550
Married joint filing (both of you over the hill)–$19,600
Married separate filing (I don’t know why you want to do so much paper work at that age)–haha—doesn’t matter your age…still $3,400
Widow(er) but you must have a dependant child–$15,150
(numbers provided by the IRS Website)

Even if you don’t have to file because you didn’t make enough money…there are a few other reasons you may want to file anyway because you may be entitled to a refund.
1. You qualify for the earned income credit
2. You have had taxes withheld from your paycheck by an employer
3. You have a child who will get you additional child credit

So, some of you should be filing and aren’t, and some of you are filing and it is completely unnecessary. Which are you?

For more information on filing: check out Publication 501 (2007), Exemptions, Standard Deduction, and Filing Information on the IRS website.

Tags: additional child credit, do i file, earned income credit, exemptions, filing information, head of house, head of household, hugh hefner, IRS, married joint filing, married separate filing, publication 501, single, standard deduction, stimulus, taxes withheld

Hybrids Save You Money (on your taxes I mean!)

We all knew driving a hybrid is better for the environment and saves you money on gas, but did you know it can also save you money on your taxes? Totally true! The government offers what they call an “Alternative Motor Vehicle Credit” for you environment conscious who purchased your vehicle on or after January 1, 2006.

If you are in the market for a hybrid, there is an incentive to buy earlier rather than later. The amount of the credit involves the year of your vehicle as well as what number sold your vehicle was. (As in the 4,000th hybrid sold this year sorta thing.) The earliest vehicles will qualify for the full credits. But don’t fret. There is still money in it for you depending on the financial quarter in which your car was purchased. Who knew saving the environment could also save your wallet?

For more detailed information on these credits and/or to check on your vehicle’s credit value: visit the  Summary of the Credit for Qualified Hybrid Vehicles section of the IRS website.

Tags: alternative motor vehicle credit, environment, hybrid vehicle credit, IRS, vehicle credit value

Where to Get a Copy of Your Tax Return

You forgot to make a copy of your tax return for yourself! Whoopsie! In the rush to get to the mailbox in time for the last delivery of the day (something you could have saved yourself had you taken my advice and e-filed, but whatever!) you didn’t make that ever important copy for your files. DUH! What do you do now? Unfortunately, you’ll have to spend a little bit of money but it is a solvable problem.

For $39 made out to the ”United States Treasury” per tax year requested, Form 4506 “Request for Copy of Tax Return”, and 60 days you will be back to having your files busting with tax forms!  You can download this form off the IRS website or call (800)–829–1040 for a copy of the form to be mailed to you. Another case solved by TK!

Tags: form 4506, IRS, request for copy of tax return, united states treasury

Estate Taxes….Disappearing?

The estate tax. Now for those of you who don’t understand it, no one can blame you. It is a complicated series of equations taking into account what you own, subtracting your debts and such, and then adding back in your taxable gifts. (For a full explanation, visit the Estate Tax section of the IRS website.) Not so much fun for those of us set to inherit money. You get this lovely surprise at a difficult time and the government wants to come in and take away a chunk of your loved one’s hard earned wealth. Well…not for long.

How the government arrives at this number is not what I am here to talk about. What I am here to discuss is the upcoming change in the law. This is most important for families who may have a loved one close to the end of their life. The federal estate-tax exclusion is slated to increase as of January 1, 2009 from 2 million to 3.5 million dollars. Now what does this mean? Basically, if your ailing loved one remains with you until the first of the year, those families who are set to inherit less than $3.5 million will be exempt from the estate taxes.

And just wait until 2010! That is the year that the federal estate tax is said to disappear entirely…or at least until 2011. So wealthy benefactors, hang in there. You could save your family a lot.

Tags: estate tax, federal estate tax, IRS

Miss Out on the Stimulus? Here’s Your Chance!

There is some good news though for those who have been laid-off this year, have taken a pay cut, or missed the first stimulus. With the economy in a recession, many people are struggling to make ends meet. The government claims to be trying to help the public with their “economic stimulus package” that was meant to help middle and lower class Americans. Unfortunately, when the time came and the checks arrived, many people were sorely disappointed having received little or sometimes, no help at all.

You may get a second chance at your rebate thanks to a small loophole in the law! The government has issued a “recovery rebate credit” for those people who’s economic status has changed during 2008. Income, family size, and a few other factors (such as the birth of a child) go into consideration for the February enacted economic-stimulus law, therefore even if you weren’t eligible for the rebate in 2007, you may be able to receive the recovery rebate in 2008/2009. Cha-Ching! So don’t fret…a little bit of help may be on the way.

To check on your check (lol!) or change/update your address: visit the “Where’s My Stimulus Payment?” on the IRS website.

Tags: check, economic stimulus package, government, IRS, law, payment, rebate, recession, recovery rebate credit, stimulus