More amazing tax tips I found and hope can be beneficial to you during this trying year...
Starting Jan. 1, the basic federal estate-tax exemption jumped to $3.5 million from $2 million in 2008. This large increase is expected to result in a major decline in the number of estates subject to the tax for 2009. It also will mean significant tax savings for many larger estates that are affected, says Sidney Kess, a New York lawyer and accountant.
Among other notable changes: The maximum amount that savers can contribute to a 401(k) plan increased. Many high-income taxpayers will benefit from changes affecting personal exemptions and certain deductions. And many Americans who live and work in other countries will be able to exclude more of their pay from U.S. tax collectors.
But not all the automatic 2009 changes will spell relief. For one thing, many people who suffer personal casualty and theft losses in 2009 won't be able to deduct as much. And about 11 million workers will pay higher Social Security taxes this year.
Standard Deductions
The basic standard deduction for joint filers for the 2009 tax year will be $11,400, up from $10,900 for 2008.
For singles, the amount for 2009 will be $5,700, up from $5,450.
The amounts are higher for those age 65 or older, for the blind, for those who paid real-estate taxes and for those with losses from federally declared disasters.
Much larger changes are expected soon from Washington in response to the economic crisis. President-elect Obama and congressional leaders are working on a wide-ranging plan that includes large cuts for both individuals and businesses.
While it's not yet known what will become law or when the changes will take effect, Congress will likely pass relief from the alternative minimum tax, or AMT. Unless lawmakers do something, tens of millions of Americans will have to pay higher taxes for 2009.
Here are some of the major changes that automatically became law on Jan. 1. While these won't affect tax returns for 2008, they may help taxpayers with 2009 planning.
Estate and gift taxes. The increase in the basic estate-tax exemption amount to $3.5 million stems from a 2001 law. (Transfers from one spouse to the other typically remain tax-free.) "Many estate plans and wills will have to be modified to take into account this increased exemption amount," Mr. Kess says.
The top federal estate-tax rate for 2009 remains unchanged at 45%. In 2010, the estate tax is supposed to disappear entirely for that one year only -- but that isn't likely to happen. During the campaign, then-Sen. Obama proposed retaining the $3.5 million exclusion amount and the 45% top rate in coming years.
The annual gift-tax exclusion rose to $13,000, up $1,000 from 2008. This means you can give as much as $13,000 this year to anyone you wish, or to as many people as you want, without having to worry about taxes or even having to file any forms with the Internal Revenue Service. It's a simple way to help others and reduce the size of your taxable estate. You can give even more than that by paying directly for someone else's tuition or medical expenses. Just be sure to pay the institution directly.
The lifetime gift-tax exclusion amount remains unchanged at $1 million.
Tuesday, January 27, 2009
The Great Rebate
Can you apply for a stimulus rebate check when filing your 2008 tax return if your 2008 income was lower than your 2007 income?
Yes it is true. People who didn't qualify for the full rebate check last year have a second chance to get the money when they file their 2008 tax return.
Those rebate checks that most people received last spring and summer were actually a tax credit for 2008, which would normally reduce your 2008 tax bill. But to get the money into people's hands quickly to stimulate the economy, Congress had the IRS make a prepayment of the credit. That meant the rebate was figured based on information from your 2007 return.
Most single filers received a $600 rebate, and married couples received $1,200, plus $300 for every dependent younger than 17. The rebate amount started to phase out if your 2007 adjusted gross income was more than $75,000 for single filers, or more than $150,000 for married couples filing jointly. For people who earned more than that, the rebate was reduced by $50 for every $1,000 you earned above the income limit. It phased out entirely at $87,000 for single filers without children and $174,000 for joint filers without children.
If you earned too much to qualify based on your 2007 income, but earned less than those limits in 2008, then you'll be able to claim the rebate when you file your 2008 taxes.
You may also qualify for some rebate money this year if you had a child in 2008, or if you were originally ineligible for a rebate because you could be claimed as a dependent on another person's tax return in 2007 but cannot be claimed as a dependent in 2008.
If you didn't originally qualify for the rebate but do this time around, then the amount will be a credit on your 2008 tax return and will be included in your refund (not sent as a separate check). You can figure out the credit when you file your form 1040 for 2008 -- the instructions for form 1040 include the calculation, or your tax-filing software will figure the credit for you.
The IRS also has some new resources to make it easy to figure out if you'll be getting the rebate. See the IRS's Recovery Rebate Credit Information Center and Questions and Answers About the Recovery Rebate Credit at the IRS's Web site.
People who had a good year don't need to worry: If you earned more in 2008 than you did in 2007, you don't have to pay back the rebate.
Yes it is true. People who didn't qualify for the full rebate check last year have a second chance to get the money when they file their 2008 tax return.
Those rebate checks that most people received last spring and summer were actually a tax credit for 2008, which would normally reduce your 2008 tax bill. But to get the money into people's hands quickly to stimulate the economy, Congress had the IRS make a prepayment of the credit. That meant the rebate was figured based on information from your 2007 return.
Most single filers received a $600 rebate, and married couples received $1,200, plus $300 for every dependent younger than 17. The rebate amount started to phase out if your 2007 adjusted gross income was more than $75,000 for single filers, or more than $150,000 for married couples filing jointly. For people who earned more than that, the rebate was reduced by $50 for every $1,000 you earned above the income limit. It phased out entirely at $87,000 for single filers without children and $174,000 for joint filers without children.
If you earned too much to qualify based on your 2007 income, but earned less than those limits in 2008, then you'll be able to claim the rebate when you file your 2008 taxes.
You may also qualify for some rebate money this year if you had a child in 2008, or if you were originally ineligible for a rebate because you could be claimed as a dependent on another person's tax return in 2007 but cannot be claimed as a dependent in 2008.
If you didn't originally qualify for the rebate but do this time around, then the amount will be a credit on your 2008 tax return and will be included in your refund (not sent as a separate check). You can figure out the credit when you file your form 1040 for 2008 -- the instructions for form 1040 include the calculation, or your tax-filing software will figure the credit for you.
The IRS also has some new resources to make it easy to figure out if you'll be getting the rebate. See the IRS's Recovery Rebate Credit Information Center and Questions and Answers About the Recovery Rebate Credit at the IRS's Web site.
People who had a good year don't need to worry: If you earned more in 2008 than you did in 2007, you don't have to pay back the rebate.
Tax Tips #1
I found some helpful tax tips for you - put them to good use if you can!
Here are answers to some queries about taxes in a time of financial turmoil, as well as some additional tax-savvy moves to consider, including what to do if you have near-worthless stocks or bonds, or are planning major charitable donations but are short on cash.
Writing off your losers. Investors are allowed to offset capital gains and losses, with no limit. If your losses exceed your gains, you can deduct as much as $3,000 of net losses ($1,500 if married and filing separately) each year. Additional losses get carried over into future years.
Or whether there are any plans in Congress to increase the current net capital-loss limit.
During the presidential campaign, Sen. John McCain proposed raising the net capital-loss limit to $15,000 a year. Then-Sen. Barack Obama didn't comment -- and still hasn't. So what are the odds Congress will change the law this year? "Pretty slim," says Clint Stretch, managing principal for tax policy at Deloitte Tax LLP. "Congress will have a hard time agreeing on any tax items before year end."
Separately, suppose you are considering selling stocks or bonds you bought years ago that are now trading for well below what you paid for them. Don't donate those losers to charity. Instead, consider selling them, using the losses to save taxes -- and then donate the proceeds to charity.
What do to with worthless stocks. What if you had the misfortune to invest in a company whose stock now is worthless or nearly worthless?
If a stock you bought for a taxable account became completely worthless during 2008, report it on Schedule D of Form 1040. Write "worthless" in columns (c) and (d), and enter the amount of your loss in parentheses in column (f). If you don't claim a loss for a worthless security on your original return for the actual year in which it became worthless, file what's known as an amended return for the year it became worthless. Use Form 1040X, available on the IRS Web site. You must file it within seven years from the date your original return for that year had to be filed, or two years from the date you paid the tax, whichever is later, the IRS says.
If the stock isn't completely worthless, consider asking your broker to buy those shares from you for a nominal amount, such as $1, so that you can clearly document your loss. Among those that will do so for clients is Vanguard Brokerage Services, says Rebecca Cohen, a Vanguard Group spokeswoman.
Changes in minimum-distribution requirements. During the presidential campaign, Mr. Obama called for major changes in the rules requiring millions of people 70½ or older to withdraw certain amounts of money from their retirement accounts. Several readers, including James M. Gleason of Rancho Palos Verdes, Calif., want to know if there's still any chance of action this year.
The short answer is yes. Although time is running short, it's still possible that Congress, the Treasury Department or both will take action. Many proposals are under consideration, including reducing how much taxpayers have to withdraw this year. Don't count on anything happening. But investors who haven't already made their full distributions for 2008 should consider delaying a little longer, just in case Washington delivers a last-minute Christmas package.
Speculation about possible changes rose last month when a Treasury official confirmed the department was studying the subject. A spokesman confirms the department is aware of the issue and is still looking into it.
But relief may not arrive until next year. Several leading senators recently proposed legislation that would place a one-year moratorium on required minimum distributions from retirement accounts, such as IRAs and 401(k)s, for 2009, a Senate Finance Committee staffer says. Among the sponsors are Senate Finance Committee Chairman Max Baucus (D., Mont.), Sen. Chuck Grassley (R., Iowa, the committee's ranking Republican member) and Sen. Ted Kennedy (D., Mass.). The legislation would "allow savings to stay put and avoid a tax hit when the market is down," a committee statement said.
Making a gift from your IRA. Meanwhile, some older taxpayers may benefit by taking advantage of a recently enacted law that extended the life of a popular provision that had expired. The law allows individuals age 70½ and older to make direct transfers of as much as $100,000 a year from an IRA to qualified charities without having to count those distributions as taxable income. What's more, the transfer counts toward the taxpayer's required minimum distribution. This provision has been extended through 2009.
"Not all charities are eligible," the IRS said in a statement issued Tuesday. "For example, donor-advised funds and supporting organizations are not eligible recipients."
Charging your charitable contributions. If you want to make a big gift to your favorite charity to nail down a deduction for your 2008 return, but don't have the cash to do it now, consider charging your gift to a credit card. As long as you charge your gift this year, you can deduct it for this year. "Contributions are deductible in the year made," the IRS said. "Thus, donations charged to a credit card before the end of the year count for 2008. This is true even if the credit card bill isn't paid until next year. Also, checks count for 2008 as long as they are mailed this year."
Here are answers to some queries about taxes in a time of financial turmoil, as well as some additional tax-savvy moves to consider, including what to do if you have near-worthless stocks or bonds, or are planning major charitable donations but are short on cash.
Writing off your losers. Investors are allowed to offset capital gains and losses, with no limit. If your losses exceed your gains, you can deduct as much as $3,000 of net losses ($1,500 if married and filing separately) each year. Additional losses get carried over into future years.
Or whether there are any plans in Congress to increase the current net capital-loss limit.
During the presidential campaign, Sen. John McCain proposed raising the net capital-loss limit to $15,000 a year. Then-Sen. Barack Obama didn't comment -- and still hasn't. So what are the odds Congress will change the law this year? "Pretty slim," says Clint Stretch, managing principal for tax policy at Deloitte Tax LLP. "Congress will have a hard time agreeing on any tax items before year end."
Separately, suppose you are considering selling stocks or bonds you bought years ago that are now trading for well below what you paid for them. Don't donate those losers to charity. Instead, consider selling them, using the losses to save taxes -- and then donate the proceeds to charity.
What do to with worthless stocks. What if you had the misfortune to invest in a company whose stock now is worthless or nearly worthless?
If a stock you bought for a taxable account became completely worthless during 2008, report it on Schedule D of Form 1040. Write "worthless" in columns (c) and (d), and enter the amount of your loss in parentheses in column (f). If you don't claim a loss for a worthless security on your original return for the actual year in which it became worthless, file what's known as an amended return for the year it became worthless. Use Form 1040X, available on the IRS Web site. You must file it within seven years from the date your original return for that year had to be filed, or two years from the date you paid the tax, whichever is later, the IRS says.
If the stock isn't completely worthless, consider asking your broker to buy those shares from you for a nominal amount, such as $1, so that you can clearly document your loss. Among those that will do so for clients is Vanguard Brokerage Services, says Rebecca Cohen, a Vanguard Group spokeswoman.
Changes in minimum-distribution requirements. During the presidential campaign, Mr. Obama called for major changes in the rules requiring millions of people 70½ or older to withdraw certain amounts of money from their retirement accounts. Several readers, including James M. Gleason of Rancho Palos Verdes, Calif., want to know if there's still any chance of action this year.
The short answer is yes. Although time is running short, it's still possible that Congress, the Treasury Department or both will take action. Many proposals are under consideration, including reducing how much taxpayers have to withdraw this year. Don't count on anything happening. But investors who haven't already made their full distributions for 2008 should consider delaying a little longer, just in case Washington delivers a last-minute Christmas package.
Speculation about possible changes rose last month when a Treasury official confirmed the department was studying the subject. A spokesman confirms the department is aware of the issue and is still looking into it.
But relief may not arrive until next year. Several leading senators recently proposed legislation that would place a one-year moratorium on required minimum distributions from retirement accounts, such as IRAs and 401(k)s, for 2009, a Senate Finance Committee staffer says. Among the sponsors are Senate Finance Committee Chairman Max Baucus (D., Mont.), Sen. Chuck Grassley (R., Iowa, the committee's ranking Republican member) and Sen. Ted Kennedy (D., Mass.). The legislation would "allow savings to stay put and avoid a tax hit when the market is down," a committee statement said.
Making a gift from your IRA. Meanwhile, some older taxpayers may benefit by taking advantage of a recently enacted law that extended the life of a popular provision that had expired. The law allows individuals age 70½ and older to make direct transfers of as much as $100,000 a year from an IRA to qualified charities without having to count those distributions as taxable income. What's more, the transfer counts toward the taxpayer's required minimum distribution. This provision has been extended through 2009.
"Not all charities are eligible," the IRS said in a statement issued Tuesday. "For example, donor-advised funds and supporting organizations are not eligible recipients."
Charging your charitable contributions. If you want to make a big gift to your favorite charity to nail down a deduction for your 2008 return, but don't have the cash to do it now, consider charging your gift to a credit card. As long as you charge your gift this year, you can deduct it for this year. "Contributions are deductible in the year made," the IRS said. "Thus, donations charged to a credit card before the end of the year count for 2008. This is true even if the credit card bill isn't paid until next year. Also, checks count for 2008 as long as they are mailed this year."
Monday, January 5, 2009
Choosing Colors
Not sure what colors to plant? Remember that pink and blue colored flowers give the viewer a soothing effect, while red and orange colored flowers are hot and exciting. When using a lot of brightly colored flowers, use silvery foliage plants such as artemisia between areas of color. Artemisia is also an excellent edging for colorful container plants.
Sunday, November 30, 2008
Envelope Creations
Make envelopes out of your old maps. Not only will this create a colorful envelope, but you will be amazed at how long people will study it to try to figure out what the map displays! Here's how to make the envelope:
Open an envelope at the seams to use as a pattern.
Copy on the WRONG side lightly and draw the envelope.
Your card can dictate the size as you get more proficient.
Glue at the folds with school glue.
Open an envelope at the seams to use as a pattern.
Copy on the WRONG side lightly and draw the envelope.
Your card can dictate the size as you get more proficient.
Glue at the folds with school glue.
Beware Of The Repairs
When choosing a shop for a vehicle that is not under warranty, first talk to friends and family to see if they recommend a place to take your car.
Also see if the facility as been certified by the National Institute for Automotive Service Excellence (ASE). The certification means that some or all of the mechanics at the shop have met basic standard of knowledge in specific technical areas. For example, some areas may be brake work, collision repair, engine repair, painting and alignment.
Even better, find out if the shop is in the ASE Blue Seal of Excellence program. The initiative recognizes shops that have 75% of their mechanics ASE certified and have a mechanic certified in each area of service that they offer.
Often shops display the Blue Seal plaque in the customer waiting area. If you don't see it, don't be afraid to ask if the facility is Blue Seal certified. You can also visit the ASE Web site.
Also see if the facility as been certified by the National Institute for Automotive Service Excellence (ASE). The certification means that some or all of the mechanics at the shop have met basic standard of knowledge in specific technical areas. For example, some areas may be brake work, collision repair, engine repair, painting and alignment.
Even better, find out if the shop is in the ASE Blue Seal of Excellence program. The initiative recognizes shops that have 75% of their mechanics ASE certified and have a mechanic certified in each area of service that they offer.
Often shops display the Blue Seal plaque in the customer waiting area. If you don't see it, don't be afraid to ask if the facility is Blue Seal certified. You can also visit the ASE Web site.
Friday, November 28, 2008
Salad Greens For Dinner
Mixed salad greens and Mesclun mixes are attractive and fun to grow, and they make a great container garden, indoors in a sunny window or outdoors.
Here’s a fun idea: Have the kids plant their own salad garden. They will enjoy cutting their own salad for dinner (little ones will need supervision) and as they cut, the greens will regrow.
Here’s a fun idea: Have the kids plant their own salad garden. They will enjoy cutting their own salad for dinner (little ones will need supervision) and as they cut, the greens will regrow.
Storm Warnings
Since the air always seems fresher after a thunderstorm, ever wonder why some people with asthma find their condition gets worse, not better?
Grass pollen is a common allergen that can trigger hay fever and asthma attacks. But grass pollen granules themselves are usually too large to find their way deep into the lungs, which could cause an even more severe attack.
But when they are exposed to water, the pollen grains break up. And when this happens, each pollen granule releases as many as 700 starch particles. These particles contain the real allergen, and they're small enough to work their way deep into the lungs.
Grass pollen is a common allergen that can trigger hay fever and asthma attacks. But grass pollen granules themselves are usually too large to find their way deep into the lungs, which could cause an even more severe attack.
But when they are exposed to water, the pollen grains break up. And when this happens, each pollen granule releases as many as 700 starch particles. These particles contain the real allergen, and they're small enough to work their way deep into the lungs.
Night Vision Mirrors
Headlights -- particularly those coming from thoughtless folks who refuse to dim their brights -- can momentarily blind the on-coming driver, creating a safety hazard.
It's almost as bad when someone shows up behind you, those beams shining directly into your rearview mirror.
The day/night rearview mirror, which first appeared four decades ago on lists of standard or optional equipment for new cars, alleviated reflective glare to some extent. Yet in night mode any mirror objects save for the offending headlamps seem obscure and hard to see.
A more recent spin-off from the day/night mirror uses electrochromic technology to automatically dampen the effect of bright headlights.
Electrochromic technology is a process of darkening glass by applying an electrical current. Such a mirror contains a thin layer of electrochromic gel sandwiched between layers of glass. When sensors detect glaring light, they energize an electronic system that causes the gel to darken and absorb the light's brightness, thus paring the glare's intensity. Once the glare passes, the mirror reverts to normal mode of high reflectivity. Driver never has to lift a finger because the mirror changes automatically, much like photosensitive eyeglasses darken relative to light exposure.
A few pricey automobiles today provide an electrochromic mirror as standard equipment, but now you may add a deluxe electronic mirror to virtually any car -- thanks to a multi-functional design by Gentex. The Night Vision Safety Mirror, which dims automatically, also has a built-in digital electronic compass, a digital thermostat to display outside temperature, plus an ice indicator that pops on for one minute when the temperature dips below 37 degrees. The mirror's wiring package fits most vehicles.
It's almost as bad when someone shows up behind you, those beams shining directly into your rearview mirror.
The day/night rearview mirror, which first appeared four decades ago on lists of standard or optional equipment for new cars, alleviated reflective glare to some extent. Yet in night mode any mirror objects save for the offending headlamps seem obscure and hard to see.
A more recent spin-off from the day/night mirror uses electrochromic technology to automatically dampen the effect of bright headlights.
Electrochromic technology is a process of darkening glass by applying an electrical current. Such a mirror contains a thin layer of electrochromic gel sandwiched between layers of glass. When sensors detect glaring light, they energize an electronic system that causes the gel to darken and absorb the light's brightness, thus paring the glare's intensity. Once the glare passes, the mirror reverts to normal mode of high reflectivity. Driver never has to lift a finger because the mirror changes automatically, much like photosensitive eyeglasses darken relative to light exposure.
A few pricey automobiles today provide an electrochromic mirror as standard equipment, but now you may add a deluxe electronic mirror to virtually any car -- thanks to a multi-functional design by Gentex. The Night Vision Safety Mirror, which dims automatically, also has a built-in digital electronic compass, a digital thermostat to display outside temperature, plus an ice indicator that pops on for one minute when the temperature dips below 37 degrees. The mirror's wiring package fits most vehicles.
Saturday, November 22, 2008
Bleach Spray
Bleach is the best and truest disinfectant of all time, not to mention inexpensive. Here are a few simple ideas on strecthing your bleach, and how to use it other than on laundry.
Place a small amount of bleach in a squirt bottle and fill it to the top with water. Use for spraying in bathtubs to get rid of mildew, cleaning counter-tops, spot-spraying shower curtains, washing off cutting boards, and wiping down the bathroom counter and toilet seats. Trust me, you will find so many uses for this spray- when it is cold and flu season ( the really bad part), you can spray down toys,light switches,steering wheels,remotes,keyboards,keys, handles too.If you have 1 or 2 sick loved ones, soaking their dishes(separately) with a couple of drops of bleach and some water in the sink will keep others in your household healthy.
Place a small amount of bleach in a squirt bottle and fill it to the top with water. Use for spraying in bathtubs to get rid of mildew, cleaning counter-tops, spot-spraying shower curtains, washing off cutting boards, and wiping down the bathroom counter and toilet seats. Trust me, you will find so many uses for this spray- when it is cold and flu season ( the really bad part), you can spray down toys,light switches,steering wheels,remotes,keyboards,keys, handles too.If you have 1 or 2 sick loved ones, soaking their dishes(separately) with a couple of drops of bleach and some water in the sink will keep others in your household healthy.
Saturday, November 15, 2008
Service Centers
For the average person with little mechanical knowledge, leaving a car with someone for repairs is a big act of trust. You know your car has a problem, and you want it to be fixed without paying outrageous prices for repairs that weren’t needed, or unexpected charges for services you didn’t ask for. There are some ways you can assure yourself that you won’t be pushed over by zealous technicians that may try to talk you into doing things you don’t understand or need.
One place to start is to ask everyone you know where they take their cars, and what their experience has been. Word will travel fast if there is an unscrupulous repair center. If you’re lucky enough to have a friend who has mechanical knowledge, invite them to go with you to check out a place. If you know your car is having problems but you cannot define what that problem is, having a more knowledgeable friend come along for a test drive could be very enlightening. A noise or other problem that you might not be able to describe will be more obvious to someone with auto repair experience.
If you don’t have anyone you can ask for help, then walk into the repair center armed with all of the information you can come up with. Have your car's symptoms written down to the best of your ability. If you get nervous, you won’t have to try to remember exactly what you were going to say. Make sure you tell the shop to call you with an estimate of charges before any work is done. Ask them if they have any minimum charges. Let the technician know that you will only pay for work done that you actually authorized.
Another important thing to do is to ask for your old parts back. You will then be able to look at the condition of your old parts and perhaps gain a better understanding of your car’s systems. Not only that, but if you’re stuck somewhere, you’ll have your old parts to either put back on in a pinch or know what to order. If possible, you should pay your account with a credit card. This way, if there is a problem later, you can refuse to pay the bill and the incident will be looked into. Finally, a little courtesy goes a long way. Be firm, but not rude when talking with your technician.
One place to start is to ask everyone you know where they take their cars, and what their experience has been. Word will travel fast if there is an unscrupulous repair center. If you’re lucky enough to have a friend who has mechanical knowledge, invite them to go with you to check out a place. If you know your car is having problems but you cannot define what that problem is, having a more knowledgeable friend come along for a test drive could be very enlightening. A noise or other problem that you might not be able to describe will be more obvious to someone with auto repair experience.
If you don’t have anyone you can ask for help, then walk into the repair center armed with all of the information you can come up with. Have your car's symptoms written down to the best of your ability. If you get nervous, you won’t have to try to remember exactly what you were going to say. Make sure you tell the shop to call you with an estimate of charges before any work is done. Ask them if they have any minimum charges. Let the technician know that you will only pay for work done that you actually authorized.
Another important thing to do is to ask for your old parts back. You will then be able to look at the condition of your old parts and perhaps gain a better understanding of your car’s systems. Not only that, but if you’re stuck somewhere, you’ll have your old parts to either put back on in a pinch or know what to order. If possible, you should pay your account with a credit card. This way, if there is a problem later, you can refuse to pay the bill and the incident will be looked into. Finally, a little courtesy goes a long way. Be firm, but not rude when talking with your technician.
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