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  1. #1
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    Default getting ready for tax season

    Hi all, since tax season is almost here, I thought I would ask the
    club members how prepared you are. For example, is it most cost
    effective for you to itemize or go with the e-z 1040? I find that I
    have to itemize to save more money. As a single woman renting an
    apartment, I don't have the same deductions married couples with kids
    have so I have be really creative. I have to donate to charitable

    organizations such as Salvation Army , church etc and beef up my
    retirement contributions. Me and the boyfriend plan on getting
    married but we are a ways off just yet. Any tips for someone like me?

  2. #2
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    Default Re: getting ready for tax season

    I taught tax preparation to high school students during the 1998-99 school
    year. What I would tell them is to try out every possibility to see which
    best benefits you. There are some single people who can do a Schedule A
    (Itemized 1040 return), and some who should do the 1040-EZ.

    I will tell you that you might want to keep checking Intuit's Turbotax on
    the web site. Every year for the past 4 years, I've seen their Turbotax on
    the web have a grant to do free electronic filing for people who make under
    $24K per year.

    Debi

  3. #3
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    Default Re: getting ready for tax season

    I find it easier to save the money if we get a big tax return. I put it
    directly into savings and try not to remember that it's there. I, personally,
    would not make myself put any extra $ from my paycheck into savings if I were to
    get more money during the year.
    My friend doesn't want Uncle Sam to keep her money so she gets more in her
    paycheck and less of a refund.

  4. #4
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    Default Re: getting ready for tax season

    I prefer this as well, but you have to take care that you don't end up
    getting so much back on your check that the government penalizes you.

    My mother was not working, only getting Social Security and a Civil Service
    survivor's pension, so she had herself taken off the tax rolls... well then
    she started working at Sam's part time, and just decided to pay in the taxes
    at the end of the year. I suggested that if she didn't want to get hit with
    a big bill, either pay them quarterly (as you would as a small business
    owner) or put the money aside into a savings account or cd that has a high
    yield, the idea being to make a little interest off the money as you wait to
    pay it. Unfortunately, that COULD give you problems as the interest is tax
    deductable.

    What really bothers me is that if you put money into an IRA and you don't
    have this come out before taxes in a TSA or such, you end up paying taxes
    when you first get it and when you take it out of the IRA. So you pay twice
    on the same money. If it's at all possible, sign your IRA up via a TSA (Tax
    Sheltered Annuity).

    Debi

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    Default Re: getting ready for tax season

    I find it easier to save the money too with a big tax
    return. What gets me is that if I put the tax return
    in the bank then you still have to declare the
    interest. They get you comming and going. I don't
    want to blow the money because I am such a saver. I
    am still saving on the money from last year. Maybe i
    need to talk to an accountant. ugh! How's a girl
    supposed to save in a tax based world?!===============
    --- "Anggie Thompson" wrote:

  6. #6
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    Default Re: getting ready for tax season

    I find it easier to save the money too with a big tax
    return. What gets me is that if I put the tax return
    in the bank then you still have to declare the
    interest. They get you comming and going. I don't
    want to blow the money because I am such a saver. I
    am still saving on the money from last year. Maybe i
    need to talk to an accountant. ugh! How's a girl
    supposed to save in a tax based world?!===============
    --- "Anggie Thompson" wrote:

  7. #7
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    Default Re: getting ready for tax season

    I can't wait to do my taxes!!! Yeah i'm weird. I get federal back
    every year but not state. I have just enough taken out where i won't
    owe for state. I'd rather have my money in my hand than the
    governments. But i'm good at getting interest and investing.

    Some tips that may be overlooked: If you itemize figure your medical
    and dental expenses including deductables and copays, insurance
    premiums if they are not taken out of pretax dollars, perscription
    medication, and there was a new thing about other medications that i
    have to research more... i think pain killers, cold medicine, may be
    able to be deducted as well now. I'm not positive until i read up on
    it.

    Under personal property taxes a portion of the amount that you pay
    for your car tabs is deductable, the part based on the cars value -
    not the cars weight.

    If you have a new mortgage or refinanced like alot of people be sure
    to deduct your points if you paid any. If you paid for your points up
    front you can deduct it all in one year. But if you rolled your
    closing costs into your mortgage including your points you have to
    deduct them over time instead of all at once.

    Unreimbursed employee expenses. Deduct all mileage involved with
    doing things for work. Like picking up supplies. You can not deduct
    mileage to and from work. If you have uniforms or a uniform cleaning
    service you can deduct that, special shoes or boots, saftey glasses,
    any tools you had to buy yourself. You also can deduct mileage and
    expenses while looking for a job. Resumes, postage and paper also.

    If you are in the lower income bracket and have kids check out the
    child tax credit, additional child tax credit 8812, and earned income
    credit.

    Also if you are in a lower income bracket and contibute to an IRA
    look into form 8880 for additional credit. This was a new form that
    came out for the 2002 tax year.

    If you find out you didn't take a credit or deduction that you could
    of in a previous year you can redo that year and still get the money
    back.

    With state taxes i'm sure it depends on the state you live in. In MI
    you can deduct part of the rent you paid. Also there is a Home
    Heating Credit for low income.

    Hope this helps!!!
    Cindy in MI

 

 

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