Andy | Saving to Invest

IRS Audit Triggers and Red Flags That Could Delay Your Refund – Why Tax Returns Are Pulled and How to Avoid Getting Audited

Most tax payers, including myself, share the same dread of getting audited by the IRS. But in reality the chances of facing an IRS audit aren't all that high and continue to decline - funding cuts and better tax software are a big reason for this. The IRS today audits,…

Understanding Good Debt vs. Bad Debt – Taking Charge of Your Finances

You may have heard the terms good debt and bad debt before, but it is not as simple as labeling credit card debt as bad, and a home loan as good because a home loan can in fact be considered bad debt too. It is important to understand the differences…

$250 Medicare Drug Coverage Gap Rebate for Seniors To Be Paid in 2010 Under Obama Health Care Reform

[Update] The government is starting to mail out the tax free $250 medicare gap checks to seniors who fall into the program's gap in prescription drug coverage. This so called Medicare "doughnut hole," payment (detailed below) was part of the recently enacted Health care reform bill. If you have Medicare prescription…

2010 HIRE Act – Small Business Health Care Tax Credit, Payroll Tax Incentive and Business Credit For Employers Hiring and Retaining Unemployed Workers

[Updated with New IRS provisions] The IRS has released more details on tax-saving opportunities included in recently enacted HIRE act federal legislation (see details in previous update below). A variety of business tax deductions and credits were created, extended and expanded by the American Recovery and Reinvestment Act of 2009…

Second Mortgage Write Down Relief Under Expanded Modification Program To Help Struggling Home Owners Facing Foreclosure

[Updated April 2010] With a weakening housing market and impending expiration of the home buyer credit, the Obama administration and Treasury have stepped up efforts to help struggling home owners facing foreclosure, including subsidies for the unemployed and borrowers who owe more than their home is worth. The updated/revised plan…

Top 10 Movies About People Trying to Get Rich

Money doesn't buy happiness? Tell that to Hollywood where money is business and box office receipts are what matter! In all seriousness, the old saying might be true, but it doesn't stop most of us from trying. And, so here are the top ten movies about people trying to get rich, and in many…

10 Frivolous Tax Avoidance Arguments – Contention versus Facts Straight From the IRS

Each year the IRS releases its discussion and rebuttal of many of the more common frivolous arguments made by individuals and groups that oppose compliance with federal tax laws. It’s called the Truth about Frivolous Tax Arguments and it makes interesting reading thanks to the inclusion of real life cases…

Taxing The American Middle Class and Rich – Fair or Not?

President Obama has released his latest budget and one of it's the hallmarks has been an increase in taxes on the "rich". This would be done by reinstating 10-year-old income tax rates of 36% and 39.6% for single Americans earning more than $200,000 and joint filers making more than $250,000…

New 2010 Stimulus Package Tax Breaks – Focused on Economic Aid For Middle Class Families via Increased Child Care, Student and Aged Care Credits

[Updated following SOU speech] President Barack Obama has proposed a new round of stimulus spending in 2010, focused on middle class families struggling to pay bills and care for their families. The initiatives in the new stimulus package are a product of a middle class task force headed by Vice…

Options for Term Life Insurance Death Benefit Payouts

There are pages written about how to buy term life insurance, but very few devoted to death benefit claims and payouts. Sadly, this topic is so neglected, that awareness levels on this matter are very low. Term life insurance is the best kind of life insurance available today, and it…

2025 Earned Income Tax Credit (EITC): Eligibility Criteria and Income Limits Explained

Below are the latest Earned Income Tax Credit (EITC) tables and income qualification thresholds adjusted for recent tax years and new legislation. These limits are adjusted annually in line with inflation and other government mandates. The EITC has returned to normal levels following the temporary expansion of eligibility rules and…

Health Care Bill Hits Married Couples Harder

Did a double take when I read an article in the WSJ that said under the new health care reform bill in Congress, marriage (relative to unmarried couples) will cost you in terms of health care premiums. And quite significantly apparently. The built-in "marriage penalty" in both House and Senate…

Tax Tips and Choosing an IRS Regulated Tax Return Preparer Subject to New Oversight, Testing and Continuing Education Requirements

With tax season well and truly upon us now a decision many have to make is to do their taxes via ever improving accounting software (like Turbo Tax) or go with a professional tax prepare for more complex returns. More than 80% of taxpayers use a paid tax preparer or…

How US and Global Stock Markets Performed with an Outlook and Forecast for the Year Ahead

It was a year in which governments and central banks around the world took extraordinary measures to get their economies growing. While the bailouts and economic stimulus boosts that many countries employed may have had mixed results for it's citizens, the boost to stock markets was definitely real. The U.S. stock…