Five Things You Should Know About Filing an Extension For Your Taxes
It is estimated that as many as 19 million people filed extensions for their tax returns last year, according to the IRS, and it is expected that at least as many will file for their 2022 returns. However, not everyone understands what it means to file an extension for their tax returns, or how it could impact them.
Five Things You Should Know About Calling the IRS
If you have tax troubles or questions, one potential source of help is to call the Internal Revenue Service’s help line. They can assist you if you have questions about your tax return, or you need to arrange a payment plan for taxes you owe, or a variety of other issues. However, if you decide to call the IRS, there are a few things you should know beforehand.
Help Older Adults Stand Up Against Scams
While anyone can become a scam victim, fraudsters usually turn to one demographic above all others: older adults. Here's a look at some of the more common scams that target older adults, along with some ideas to help stand up against these would-be thieves.
Tax Day...April 18th?
For the second year in a row, the traditional April 15th Federal Tax filing due date is being moved for a local holiday observance. Here's what you need to know about Emancipation Day and how it affects the traditional tax filing deadline.
Raising Financially Savvy Kids
Whether your kids are toddlers or teenagers, it is critical that you teach them how to become financially independent.
Who Qualifies as a Dependent for Taxes?
Dependents can help reduce your tax bill by claiming valuable credits like the child tax credit, dependent care credit, or adoption credit. But who qualifies as a dependent?
Great Money Habits
Developing and maintaining great money habits can help you lay the foundation for achieving your financial goals. Here are some ideas.
How to Deal with Unpaid Invoices
Proactive processes can help protect your company and its cash flow.
APRIL 2023 Q & A
Q: What's the difference between fixed and variable costs?
A: It's important for small business owners to track and understand how expenses vary with changes in production and sales volume because it impacts many aspects of the business.
Most businesses have both fixed and variable costs. Fixed costs, or overhead expenses, are incurred regardless of a change in production and sales volume. Examples of fixed costs include rent, insurance, utilities, and some taxes (like property tax).
Examples of variable costs include raw materials, delivery expenses, sales commissions, and credit card processing fees.
Review Your Credit Report Often
Your credit report is your financial biography. It’s key to determining the interest rates you’ll pay on loans and can impact a job application if you work in certain fields. You’ll want to review all three of your credit reports at least once a year to ensure they are correct.
According to a Consumer Reports study in 2021, one in three people reported finding errors on one of their credit reports. There are three credit reporting companies: TransUnion, Experian, and Equifax. You’ll want to review your report from all three. Just because your Experian report is correct doesn’t guarantee your Equifax report contains the same information.
Start by reviewing the personal information (name, address(es), and dates of birth) to ensure that the data is correct. If you see an address you don’t recognize, it could signify that someone has misused your Social Security Number. This could be an early warning sign of identity theft.
Next, review all the accounts reported to the credit bureau. Ensure you know what each one is for and that you opened the account. Also, look at the payment status of each account for accuracy. Even one incorrect notation of a late payment can significantly impact your credit score.
You can receive each of your credit reports free once per year at Annualcreditreport.com.
Who Can Contribute to a 529 Plan?
You can help any child save for college expenses by contributing to a 529 college savings plan. All 529 plans accept third-party contributions, regardless of who owns the account. That means anyone, including grandparents, aunts, uncles, or even friends, can help a child save for college.
The money you invest in a child’s 529 plan grows on a tax-deferred basis, and distributions are completely tax-free when used to pay for the child’s qualified education expenses. Because of this tax-free compounding, even a small gift can potentially grow substantially over time. Every dollar a student has in college savings is one dollar less that they will have to borrow in student loans.
Beginning in 2024, beneficiaries can rollover unused 529 funds to a Roth IRA. Several rules apply, so consult your tax professional.