What are your barriers to saving?

Posted on July 1, 2022 by FCA Admin

            

I came across this great article on Americasaves.org.  Many people have difficulty saving for one reason or another.  In this article, the writer shares some great tips to help and encourage people to save. The topics that she discusses are listed below:

  1. Does the Cost of Living Keep You from Saving?
  2. Do You Find Yourself Making Impulse Purchases?
  3. Do You Need to Manage Your Time Better?
  4. Are You Carrying Credit Card Balances?

 

The full article can be read at the americasaves.org website by clicking on the attached link to the website.

Posted in consumer laws, credit cards, education, investing, personal finance, Savings | Tagged , , , , | Comments Off on What are your barriers to saving?

Keeping Good Records Reduces Stress at Tax Time

Posted on April 10, 2022 by FCA Admin

Although most people won’t be filing their tax returns for several months, the dog days of summer are actually a great time to start planning for the tax filing season by ensuring your records are organized.  Whether you are an individual taxpayer or a business owner, you can avoid headaches at tax time with good records because they will help you remember transactions you made during the year.

Here are a few things the IRS wants you to know about recordkeeping.

Keeping well-organized records also ensures you can answer questions if your return is selected for examination or prepare a response if you are billed for additional tax. In most cases, the IRS does not require you to keep records in any special manner. Generally speaking, you should keep any and all documents that may have an impact on your federal tax return.

Individual taxpayers should usually keep the following records supporting items on their tax returns for at least three years:

  • Bills
  • Credit card and other receipts
  • Invoices
  • Mileage logs
  • Canceled, imaged or substitute checks or any other proof of payment
  • Any other records to support deductions or credits you claim on your return

You should normally keep records relating to property until at least three years after you sell or otherwise dispose of the property. Examples include:

  • A home purchase or improvement
  • Stocks and other investments
  • Individual Retirement Arrangement transactions
  • Rental property records

If you are a small business owner, you must keep all your employment tax records for at least four years after the tax becomes due or is paid, whichever is later. Examples of important documents business owners should keep Include:

  • Gross receipts: Cash register tapes, bank deposit slips, receipt books, invoices, credit card charge slips and Forms 1099-MISC
  • Proof of purchases: Canceled checks, cash register tape receipts, credit card sales slips and invoices
  • Expense documents: Canceled checks, cash register tapes, account statements, credit card sales slips, invoices and petty cash slips for small cash payments
  • Documents to verify your assets: Purchase and sales invoices, real estate closing statements and canceled checks

For more information about recordkeeping, check out IRS Publications 552, Recordkeeping for Individuals, 583, Starting a Business and Keeping Records, and Publication 463, Travel, Entertainment, Gift, and Car Expenses. These publications are available on the IRS Web site, IRS.gov or by calling 800-TAX-FORM (800-829-3676).

Links:

Source: IRS Issue Number:    Summertime Tax Tip 2009-23

Posted in personal finance, Taxes | Tagged , , | Comments Off on Keeping Good Records Reduces Stress at Tax Time

Eight Things to Know If You Receive an IRS Notice

Posted on December 5, 2021 by FCA Admin

Every year, the IRS sends millions of letters and notices to taxpayers. Many taxpayers will receive this correspondence during the late summer and fall. Here are eight things every taxpayer should know about IRS notices – just in case one shows up in your mailbox.

  1. Don’t panic. Many of these letters can be dealt with simply and painlessly.
  2. There are number of reasons the IRS sends notices to taxpayers. The notice may request payment of taxes, notify you of a change to your account or request additional information. The notice you receive normally covers a very specific issue about your account or tax return.
  3. Each letter and notice offers specific instructions on what you are asked to do to satisfy the inquiry.
  4. 4. If you receive a correction notice, you should review the correspondence and compare it with the information on your return.
  5. If you agree with the correction to your account, usually no reply is necessary unless a payment is due.
  6. If you do not agree with the correction the IRS made, it is important that you respond as requested. Write to explain why you disagree. Include any documents and information you wish the IRS to consider, along with the bottom tear-off portion of the notice. Mail the information to the IRS address shown in the upper left-hand corner of the notice. Allow at least 30 days for a response.
  7. Most correspondence can be handled without calling or visiting an IRS office. However, if you have questions, call the telephone number in the upper right-hand corner of the notice. Have a copy of your tax return and the correspondence available when you call to help us respond to your inquiry.
  8. It’s important that you keep copies of any correspondence with your records.

For more information about IRS notices and bills, see Publication 594, The IRS Collection Process. Information about penalties and interest charges is available in Publication 17, Your Federal Income Tax for Individuals. Both publications are available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).

Links:

Source: IRS Issue Number:  Summertime Tax Tip 2009-22

Posted in consumer laws, personal finance, Taxes | Tagged , | Comments Off on Eight Things to Know If You Receive an IRS Notice

Prepare for Hurricanes, Disasters by Safeguarding Tax Records

Posted on September 30, 2021 by FCA Admin

Issue Number:    IRS-2012-60

Inside This Issue

IRS YouTube Videos

Podcast
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.

Posted in education, Taxes | Comments Off on Prepare for Hurricanes, Disasters by Safeguarding Tax Records

Yet another great way to save.

Posted on August 6, 2021 by FCA Admin

 

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/.

 

Posted in Banking, Savings | Tagged , | Comments Off on Yet another great way to save.

Save Money on Childcare

Posted on February 10, 2021 by FCA Admin

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/

 

 

Don’t forget to follow us on Twitter: http:// twitter.com/1stCapAdvise

 

 

Posted in personal finance, Savings | Tagged , | Comments Off on Save Money on Childcare

Six Social Media Tools to Help You Get Free Tax Information

Posted on December 15, 2020 by FCA Admin

Issue Number:    IRS Summertime Tax Tip 2012-10

Inside This Issue

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.

Posted in consumer laws, education, personal finance, Savings, Taxes | Comments Off on Six Social Media Tools to Help You Get Free Tax Information

Taxes and the Military

Posted on June 18, 2020 by FCA Admin

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:

  • Unreimbursed expenses related to moving can be deducted. For more information refer to IRS Publication 3, Armed Forces’ Tax Guide.
  • Combat Pay is not taxable for any period served in a combat zone.
  • Tax filing deadlines are usually extended for members of the military.
  • Certain costs associated with the upkeep of uniforms are deductible.
  • Power of Attorney is allowed for spouses unable to file joint returns due to military duty.
  • Members of the US Armed Forces Reserves can deduct unreimbursed travel expenses for traveling over 100 miles away from home to perform duty. 
  • Certain allowances paid to ROTC Students in advance training are non taxable.
  • Job Hunting expenses are also deductible for military personnel who are making the transition to the workforce from the military.
  • Lastly, free tax assistance is available for military personnel at tax time. 

 

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.

 

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

 

 

Posted in consumer laws, education, personal finance, Taxes | Comments Off on Taxes and the Military

IRS Tip Sheet on Gambling Income and Losses

Posted on May 12, 2020 by FCA Admin

Issue Number:    IRS Summertime Tax Tip 2014-03

Inside This Issue

Whether you like to play the ponies, roll the dice or pull the slots, your gambling winnings are taxable. You must report all your gambling income on your tax return. If you’re a casual gambler, odds are good that these basic tax tips can help you at tax time next year:

1. Gambling income.  Gambling income includes winnings from lotteries, horse racing and casinos. It also includes cash prizes and the fair market value of prizes like cars and trips.

2. Payer tax form.  If you win, you may get a Form W-2G, Certain Gambling Winnings, from the payer. The IRS also gets a copy of the W-2G. The payer issues the form depending on the type of game you played, the amount of your winnings and other factors. You’ll also get the form if the payer withholds taxes from what you won.

3. How to report winnings.  You must report all your gambling winnings as income. This is true even if you don’t receive a Form W-2G. You normally report your winnings for the year on your tax return as ‘other income.’

4. How to deduct losses.  You can deduct your gambling losses on Schedule A, Itemized Deductions. The amount you can deduct is limited to the amount of the gambling income you report on your return.

5. Keep gambling receipts.  You should keep track of your wins and losses. This includes keeping items such as a gambling log or diary, receipts, statements or tickets.

For more on this topic see Publications 525, Taxable and Nontaxable Income, and 529, Miscellaneous Deductions. Both are available on IRS.gov or by calling 800-TAX-FORM (800-829-3676).

Additional IRS Resources:

IRS YouTube Videos:

IRS Podcasts:

Note. From Issue Number: IRS Tax Tip 2014-03.  Copyright 2014 by Copyright Holder. Reprinted with permission.

 

Posted in education, personal finance, Taxes | Comments Off on IRS Tip Sheet on Gambling Income and Losses

Tips for Running a Green Business

Posted on January 23, 2020 by FCA Admin

Going green is the new buzz word.  Many people think that only large businesses can go green.  Well, no matter how big or small your business, there are many things that can be done to promote a cleaner environment.  Here are my top tips below:

  1. Turn off office equipment. It doesn’t make sense to leave your equipment on if it is not being used.  Leaving your equipment on wastes energy and wastes money.
  2. Use email.  Email is a fast means of communication and also does not waste paper. 
  3. Print documents double-sided. This is also an effective way to not waste paper.
  4. Use paper suppliers with maximum recycled content. Using recycled material is great for the environment.
  5. Investigate to see if existing office furniture can be refurbished.  This is cost effective and is safe for the environment. 
  6. Use suppliers who take back packaging for reuse.  This is yet another great method to improve our environment.
  7. Check faucets for dripping water. Reducing water usage is great for the environment and great for cost savings for your business.

 

Posted in Business Savings | Tagged | Comments Off on Tips for Running a Green Business