Give Tax Records a Mid-Year Tune-up this Summer

Posted on April 24, 2024 by FCA Admin

Issue Number:    Summertime Tax Tip 2013-23

Inside This Issue

During the summer, you may not think about doing your taxes, but maybe you should. Some of the expenses you’ve paid over the past few months might qualify for money-saving tax credits or deductions come tax time. If you organize your tax records now, you’ll make tax filing easier and faster when you do them next year. It also helps reduce the chance that you’ll lose a receipt or statement that you need.

Here are some tips from the IRS on tax recordkeeping.

• You should keep copies of your filed tax returns as part of your tax records. They can help you prepare future tax returns. You’ll also need them if you need to file an amended return.
• You must keep records to support items reported on your tax return. You should keep basic records that relate to your federal tax return for at least three years. Basic records are documents that prove your income and expenses. This includes income information such as Forms W-2 and 1099. It also includes information that supports tax credits or deductions you claimed. This might include sales slips, credit card receipts and other proofs of payment, invoices, cancelled checks, bank statements and mileage logs.
• If you own a home or investment property, you should keep records of your purchases and other records related to those items. You should typically keep these records, including home improvements, at least three years after you have sold or disposed of the property.
• If you own a business, you should keep records that show total receipts, proof of purchases of business expenses and assets. These may include cash register tapes, bank deposit slips, receipt books, purchase and sales invoices. Also include credit card receipts, sales slips, canceled checks, account statements and petty cash slips. Electronic records can include databases, saved files, emails, instant messages, faxes and voice messages.
• If you own a business with employees, you should generally keep all employment-related tax records for at least four years after the tax is due, or after the tax is paid, whichever is later.
• The IRS doesn’t require any special method to keep records, but it’s a good idea to keep them organized and in one place. This will make it easier for you to prepare and file a complete and accurate return. You’ll also be better able to respond if there are questions about your tax return after you file.

You’ll find more information about recordkeeping for individuals in Publication 17, Your Federal Income Tax. Business owners should check Publication 583, Starting a Business and Keeping Records. Both are available at IRS.gov or by calling 800-TAX-FORM (800-829-3676). Video and audio files explaining recordkeeping requirements are also available on our IRS video portal at www.irsvideos.gov.

Additional IRS Resources:
• Publication 17, Your Federal Income Tax 
• Tax Topic 305 – Recordkeeping
• Publication 583, Starting a Business and Keeping Records IRS

 

Note. From Issue Number: IRS Tax Tip 2013-23. Copyright 2013 by Copyright Holder. Reprinted with permission.

Posted in consumer laws, education, personal finance, Savings, Taxes | Comments Off on Give Tax Records a Mid-Year Tune-up this Summer

Don’t Overlook the Benefits of Miscellaneous Deductions

Posted on March 5, 2024 by FCA Admin

Issue Number:    IRS Summertime Tax Tip 2012-17

Inside This Issue

If you are able to itemize your deductions on your tax return instead of claiming the standard deduction, you may be able to claim certain miscellaneous deductions. A tax deduction reduces the amount of your taxable income and generally reduces the amount of taxes you may have to pay.

Here are some things you should know about miscellaneous tax deductions:

Deductions Subject to the 2 Percent Limit. You can deduct the amount of certain miscellaneous expenses that exceed 2 percent of your adjusted gross income. Deductions subject to the 2 percent limit include:

  • Unreimbursed employee expenses such as searching for a new job in the same profession, certain work clothes and uniforms, work tools, union dues, and work-related travel and transportation.
  • Tax preparation fees.
  • Other expenses that you pay to: 

– Produce or collect taxable income,
– Manage, conserve, or maintain property held to produce taxable income, or
– Determine, contest, pay, or claim a refund of any tax.

Examples of other expenses include certain investment fees and expenses, some legal fees, hobby expenses that are not more than your hobby income and rental fees for a safe deposit box if it is not used to store jewelry and other personal effects. 

Deductions Not Subject to the 2 Percent Limit.  The list of deductions not subject to the 2 percent limit of adjusted gross income includes:

  • Casualty and theft losses from income-producing property such as damage or theft of stocks, bonds, gold, silver, vacant lots, and works of art.
  • Gambling losses up to the amount of gambling winnings.
  • Impairment-related work expenses of persons with disabilities.
  • Losses from Ponzi-type investment schemes.

Qualified miscellaneous deductions are reported on Schedule A, Itemized Deductions. Keep records of your miscellaneous deductions to make it easier for you to prepare your tax return when the filing season arrives.

There are also many expenses that you cannot deduct such as personal living or family expenses. You can find more information and examples in IRS Publication 529, Miscellaneous Deductions, which is available on IRS.gov or by calling 800-TAX-FORM (800-829-3676).
Links:

  • Publication 529, Miscellaneous Deductions (PDF)
  • Tax Topic 508 – Miscellaneous Expenses
  • Schedule A Itemized Deductions (PDF)
  • Instructions for Schedule A (PDF)

YouTube Videos:

 

Note. From Issue Number: IRS Tax Tip 2012-17. Copyright 2013 by Copyright Holder. Reprinted with permission.

Posted in education, personal finance, Savings, Taxes | Comments Off on Don’t Overlook the Benefits of Miscellaneous Deductions

How much do you know about social security?

Posted on February 8, 2024 by FCA Admin

I was recently reading an article about young workers and social security.  The article mentions that many young adults don’t understand social security and the impact that social security and saving can have on their future plans. Some basic facts about social security are listed below:

 

  • An annual social security statement is mailed to you each year just before your birthday.
  • The statement lists how much you’ve been paying into the social security system since you’ve started working.  The report also lists what you have accumulated in benefits over the period of your employment history.
  • Be sure to update your name and social security number with your employer if you have recently gotten married.
  • Social security provides more benefits than just for retirement.  Social security provides added protection if you become disabled or in the event of death.  Page two of your yearly statement shows how much you have earned and can expect to receive in the event of disability or death.
  • Social security provides an income source when you retire.  The average is around 40% of earnings before retirement.
  • Don’t depend solely on social security.  Create an investment and retirement plan through your employer or by obtaining an IRA.
  • Visit www.choosetosave.org , www.mymoney.gov , or http://investor.gov and get started today with an investment and retirement plan.
  • The US Social Security Administration website is: www.ssa.gov.

 

 

Follow us on Twitter.: http://twitter.com/1stCapAdvise

Posted in consumer laws, education, investing, personal finance, Savings | Tagged , , | Comments Off on How much do you know about social security?

Cost Savings for your business in the New Year

Posted on January 11, 2024 by FCA Admin

As we embark on a new year, many small businesses are continually seeking new ways to decrease costs without having to take drastic measures.  I’ve spoken to several small business owners who are seeking guidance on different ways to cut costs.  Listed below are a few helpful strategies that will assist with cost cutting for your small business:

 

  • Purchase items in bulk: If your small business uses large quantities of a product, then it makes sense to join a warehouse club such as Costco or Sam’s Club.  These warehouse clubs are also great for large families.  I personally have a Sam’s Club Membership.  Not only do I make purchases at Sam’s Club, I also use the Sam’s Club gas where I also save money on gasoline. The warehouse clubs also offer great discounts on insurance and even emergency road side assistance.
  • Comparison shop:  Websites such as www.pricegrabber.com are a great tool for comparison shopping.  These sites are great because you can compare an item found in multiple stores even before you go out to the actual store. You’ll save money and time.
  • Look for multiple discounts: Several companies provide discounts to customers through bundle packages.  For example, a bundle package might include phone and internet service.   These packages save considerable amounts of money versus paying for each service separately.
  • Cut utility bills: Some of the ways to cut utility bills are using ceiling fans or compact fluorescent light bulbs.  There are even tax incentives for being energy efficient.  Taxpayers can quality for tax incentives for adding insulation or roofing materials.
  • Change phone services:  Many companies are switching to a new technology called Voice over Internet Protocol (VoIP).   This type of service allows you to make calls using your computer instead of a landline. One of the major providers is Net2Phone.  For more information visit the Net2Phone website at www.net2phone.com.

 

 

Posted in Business Savings | Tagged | Comments Off on Cost Savings for your business in the New Year

Women need to save more for retirement

Posted on December 31, 2023 by FCA Admin

 

I recently came across an article about why women should save more for retirement.  Interesting I thought. So I kept reading.

The primary reason that we should save more is because we tend to outlive men.  And the longer we live, the more we need in retirement savings.  This means that it is important to start now and get ready for retirement.

How do you get started? Listed below are a few steps to get you on the right track:

                                               

  • Understand your Social Security benefits statement. – Visit the US Social Security Administration website: www.ssa.gov  for more information.
  • Review your retirement plan statement for your 401(k) or 403(b) plan – A financial advisor is a great resource for helping you to review your plan.
  • Open up an Individual Retirement Account – many banks offer IRAs to their customers.  Financial advisors can also assist with this process.
  • Visit www.choosetosave.org , www.mymoney.gov , or http://investor.gov and get started today with an investment and retirement plan.
Posted in education, investing, personal finance, Savings | Tagged , , | Comments Off on Women need to save more for retirement

How I saved money in college.

Posted on November 24, 2023 by FCA Admin

Ok. So it’s time to send your kids off to college.  With the economy being the way it is, we must always remember to save. But how do you save while attending college?  I’ll share some of my strategies with you and hopefully you will find them helpful.

  • Get a paid summer internship.  This was my lifeline when I was in college.  I was very fortunate to get into the INROADS internship program (www.inroads.org).  This program gave me the opportunity to obtain experience in my field of study, accounting, and also make some money during the summer.

 

  • Once you have made your money during the summer, don’t forget to save your money.  One of the savings accounts that I always loved is the Electric Orange from ING direct (www.ingdirect.com). This account has awesome interest rates.

 

  • Use your student discounts.  Several merchants offer great discounts to students simply by showing your school id.  Check with your school’s campus activities office for a listing of merchants that offer student discounts.

 

  • Participate in campus entertainment events. These are usually free or offered at a discounted student rate.

 

  • Buy used textbooks and sell your textbooks to the bookstore after your term is over. 

 

  • Educate yourself about personal finances.  I love bankrate.com. It’s never too early to learn about personal finances.

 

 

Although this list is not all inclusive, it is a great start for smart savings while in college. What are some of the strategies you used to save money while in college?

 

 

 

Follow us on Twitter: http:// twitter.com/1stCapAdvise

Posted in personal finance, Savings | Tagged , | Leave a comment

Debt Management Guide

Posted on September 7, 2023 by FCA Admin

Are you in over your head in debt and looking for an informative way to manage and understand your debt?  Then check out Bankrate.com’s debt management guide.  The guide is available at http://www.bankrate.com/finance/debt/debt-management-guide.aspx.

Within the guide, you’ll learn these valuable tips:

·         Where to get help for your debt.  Of course the first thing you will want to know is who can help you.

·         Finance calculators to help you manage your debt.

·         Understand how credit works. This is just as important as learning to manage your debt.

·         The importance of good credit.  Good credit opens several doors of opportunity including better rates on loans and credit card rates.

·         Learn signs of upcoming debt problems and how to avoid them.  This is geared towards those not already in debt. But gives insight on what to look for and how to avoid debt.

I hope this guide is as informative to you as it is to me.  Even if you are not in debt, it will help you to learn how to avoid debt and alert you of warning signs. This is truly worth reading and passing on to a friend.

 

Follow us on Twitter: http:// twitter.com/1stCapAdvise.

Posted in credit cards, personal finance | Tagged , | Comments Off on Debt Management Guide

Top 10 Reasons to Visit IRS.gov this Summer

Posted on June 7, 2023 by FCA Admin

Issue Number:    IRS Summertime Tax Tip 2014-05

Inside This Issue

If you need tax help or information, your best option is to visit the IRS.gov website. Our many online tools and services make it easy for you to do business with the IRS. Here are ten good reasons to visit IRS.gov this summer:

1. Use IRS Free File.  If you still need to file your 2013 tax return, you can e-file for free by using IRS Free File through Oct. 15. If you earned $58,000 or less you can prepare and e-file your taxes using tax software for free. If you made more, you can use Free File Fillable Forms to e-file for free. This option is the electronic version of IRS paper forms.

2. Check on your refund.  The Where’s My Refund? tool is a fast and easy way to check on your tax refund. Use the IRS2Go mobile app to access it or click on the ‘Refunds’ tab on IRS.gov.

3. Try IRS Direct Pay.  If you owe taxes, pay with IRS Direct Pay, our safe, easy and free way to pay from your checking or savings account. Just click on the ‘Pay Your Tax Bill’ link on the IRS home page.

4. Apply for an IRS payment plan.  If you can’t pay all your taxes at once, apply for an IRS Online Payment Agreement. A direct debit payment plan is a great way to pay. It has a lower set-up fee, you won’t miss a payment and you won’t get an IRS reminder to send a check each month.

5. Correct your tax withholding.  If you got a big refund or owed a large amount of tax when you filed your tax return, then you may need to change your tax withholding. To make a change, complete and give your employer a new Form W-4, Employee’s Withholding Allowance Certificate. The IRS Withholding Calculator tool can help you fill out a new Form W-4.

6. Get health care tax information.  The IRS website also has information about the Affordable Care Act tax provisions at IRS.gov/aca. You can visit this site for educational material that describes how the health care law tax provisions affect individuals and businesses. The pages provide information about tax provisions that are in effect now and those that will go into effect in 2015 and beyond. You can find information about the law and its provisions, legal guidance, the latest news, frequently asked questions and links to additional resources.

7. Get a tax transcript.  If you apply for a loan or student financial aid, you may need a tax transcript. Visit IRS.gov and use the Get Transcript tool.

8. Check out a charity.  You must donate to a qualified charity if you want to deduct the gift on your tax return. Use the IRS Select Check tool to see if a charity is qualified.

9. Get answers to tax questions.  The Interactive Tax Assistant covers many common tax topics. Type in your question or search terms and it can lead you step-by-step to the answer. The IRS Tax Map gives you a single point of access to tax law information by subject. It integrates tax topics, forms, instructions and publications into one research tool.

10. Get forms and publications.  View, download and print federal tax forms and publications anytime you want.

 

Note. From Issue Number: IRS Tax Tip 2014-05.  Copyright 2014 by Copyright Holder. Reprinted with permission.

 

Posted in education, personal finance, Taxes | Comments Off on Top 10 Reasons to Visit IRS.gov this Summer

Keeping the New Year’s Resolution

Posted on May 28, 2023 by FCA Admin

The first quarter of the year is almost over.  And if you are like me, you haven’t been keeping your New Year’s Resolutions.  Of course we are all human and so far this year has been full of surprises and challenges for the entire country.  These challenges often force us to take our eyes off of our goals.  But in order to be successful in life, it is important to try and refocus even if it means revising our goals.

How do I refocus you might ask?  The first thing I like to do is ask myself why I created the goal in the first place.  Was it that important to me?  Is the goal for myself or is it someone else’s goal.  Let’s say that your goal was to stay within your budget.  This is a personal goal and staying within your budget will be better for you financially.  Therefore this is your own goal. 

Another option is to revise your goal.  Perhaps the goal was too broad.  It can be helpful to revise the goal and break it down into smaller more achievable goals.  If we use the budget example, you can try to break it down into smaller goals by first creating a list of all of your expenses.  Then use an Excel spreadsheet to calculate the expenses and obtain a total.  Another step would be to break out the expenses into categories such as variable and fixed expenses.

Lastly, once you have revised your goal, go ahead and set a new goal. Perhaps you can give yourself a shorter deadline.  Using the budget example again, we revised the goal to stay within my budget for the variable expenses and review my budget quarterly. This is our new goal.

In summary, no matter what your goals were for 2010, do not lose sight of them because the first quarter of the year has been challenging.  Revisit and refocus on your goals because the year is not yet over.  There is always plenty of time to start over and make a fresh start.

Posted in investing, personal finance, Savings | Tagged , | Comments Off on Keeping the New Year’s Resolution

Are you in the market for a new job? Be sure to know your tax benefits.

Posted on April 16, 2023 by FCA Admin

The IRS frequently issues tips to taxpayers on various topics.  One topic of interest is tax benefits for job seekers. With so many people in the job market, the IRS feels that is imperative for job seekers to understand the tax benefits related to their job searches. 

Job seekers are able to deduct most costs incurred during their job search if the costs are incurred for a job within the same occupation.  Eligible expenses include:

  • Employment or outplacement agency fees
  • Travel expenses incurred while looking for a job
  • Mailing copies of resumes

A key point to remember is that these expenses can only be incurred for a job in your current occupation and the costs cannot be for a first time job seeker.

More information is available by reading IRS Publication 529, miscellaneous expenses.

Posted in education, employment, personal finance, Taxes | Tagged , , | Comments Off on Are you in the market for a new job? Be sure to know your tax benefits.