Sunday, April 13, 2008
Tax Time
Suddenly realized the other day that April 15th is just a few days away. I've been so busy helping clients get their taxes filed I have neglected to get my information to my tax accountant. So, there will be no further postings until I complete my taxes.
Assistive Devices
At some point in our lives we will encounter a need for assistive devices (crutches, walkers, canes, grabbers, etc. -- either for ourselves or for a loved one. When we no longer have a need for these devices, they just gather dust in a corner of our attics, basements and garages. May I suggest, instead, that you donate these items to your local Council on Aging or area agency on aging to be loaned, free of charge, to others in need of these items. Some organizations may also accept donations. In Malden, Massachusetts, the Masons provide this service. Another alternative would be to locate an organization that supports efforts in third world countries.
Massachusetts Senior Circuit Breaker Tax Credit
If you are age 65+, and have paid rent or real estate taxes in 2007, you may be eligible for the Massachusetts Circuit Breaker Tax Credit. This tax credit is for seniors whose real estate tax payments are greater than 10% of their income.
Eligibility Requirements
* you or your spouse must be age 65 or older by the end of the tax year
* if married, you must file jointly
* you cannot be the dependent of another taxpayer
* you must rent or own a home in Massachusetts that is your principal residence
* if you are a homeowner, your property's assessed value cannot be greater than $772,000 on January 1, 2007.
* if you are a renter, you cannot be getting a federal or state rent subsidiy (such as Section 8), and your landlord must pay property taxes
* you must meet the income limits
* the amount you paid for real estate taxes must be greater than 10% of your total income
Income Limits
Your total income, in 2007, cannot be greater than
* $48,000 single
* $60,000 head of household
* $72,000 married filing jointly
Total income includes social security, retirement, pensions and annuities, cash public assistance, and tax-exempt interest and dividends.
Calculating Real Estate Tax Payments
* Homeowners should include all real estate tax payments (minus any abatements or exemptions) actually paid during the tax year.
* Homeowners may also add 50% of the water and sewer charges paid during the year (unless they live in a community that includes water and sewer debt charges in the real estate taxes).
* Renters should count 25% of the rent payments they actually paid during the tax year as real estate tax payments.
The maximum tax credit you can get is $900 for tax year 2007. The actual credit you will get depends on your income and your real estate tax payments.
If you did not claim the circuit breaker tax credit in previous years, you can go back three years and claim the credit now.
You must file a Massachusets state income tax return to claim the Circuit Breaker Credit, whether or not you normally file a state tax return. You must include Schedule CB, Circuit Breaker Credit, with Form 1. This year you must also include proof of health insurance (Medicare) coverage (Schedule HC).
One of my clients, for whom I had not provides services in the past, received $3400 in refunds by filing for the Circuit Breaker Tax Credit for the current and past three years!
Eligibility Requirements
* you or your spouse must be age 65 or older by the end of the tax year
* if married, you must file jointly
* you cannot be the dependent of another taxpayer
* you must rent or own a home in Massachusetts that is your principal residence
* if you are a homeowner, your property's assessed value cannot be greater than $772,000 on January 1, 2007.
* if you are a renter, you cannot be getting a federal or state rent subsidiy (such as Section 8), and your landlord must pay property taxes
* you must meet the income limits
* the amount you paid for real estate taxes must be greater than 10% of your total income
Income Limits
Your total income, in 2007, cannot be greater than
* $48,000 single
* $60,000 head of household
* $72,000 married filing jointly
Total income includes social security, retirement, pensions and annuities, cash public assistance, and tax-exempt interest and dividends.
Calculating Real Estate Tax Payments
* Homeowners should include all real estate tax payments (minus any abatements or exemptions) actually paid during the tax year.
* Homeowners may also add 50% of the water and sewer charges paid during the year (unless they live in a community that includes water and sewer debt charges in the real estate taxes).
* Renters should count 25% of the rent payments they actually paid during the tax year as real estate tax payments.
The maximum tax credit you can get is $900 for tax year 2007. The actual credit you will get depends on your income and your real estate tax payments.
If you did not claim the circuit breaker tax credit in previous years, you can go back three years and claim the credit now.
You must file a Massachusets state income tax return to claim the Circuit Breaker Credit, whether or not you normally file a state tax return. You must include Schedule CB, Circuit Breaker Credit, with Form 1. This year you must also include proof of health insurance (Medicare) coverage (Schedule HC).
One of my clients, for whom I had not provides services in the past, received $3400 in refunds by filing for the Circuit Breaker Tax Credit for the current and past three years!
Wednesday, April 9, 2008
Life Lessons
For an amazing, uplifting experience, please watch Randy Pausch on ABC's Primetime tonight. Randy was a professor at Carnegie Mellon University. At many colleges, professors are asked to give a "last lecture" on what matters most to them. Basically, wisdom you would impart to the world if you knew it was your last chance. Shortly after agreeing to give his "last lecture" at Carnegie Mellon, Randy learned he was dying of pancreatic cancer. His "last lecture" was so inspirational! This man is a joy to listen to; he really "gets" what's important in life..
Protecting Your Identity at Tax Time
This time of year is stressful for many peoople trying to prepare their taxes before the April 15th deadline. Adding to the stress is the threat of identity theft.
A recent ABC news item (Prevent Tax Time Identity Theft, March 17, 2008) states that the Federal Trade Commission has received more than 20,000 complaints about thieves filing phony tax returns, with names and social security numbers of unsuspecting victims, and receiving their tax refunds.
Following are some suggestions for keeping your information safe -
* Don't use passwords with common information like your birthdate, mother's maiden name, social security or telephone numbers.
* Don't save passwords on your Web browser.
* Update firewalls and other protective systems on your computer.
* Password-protect tax returns that you print to PDF from your tax software to keep sensitive information secure.
* Encrypt tax documents being e-mailed to your accountant.
* Shred any paperwork with personal information before discarding.
* Store tax records and other important documents in a secure area of your home.
* Mail tax returns (certified mail) from the post office or a USPS mailbox. The ABC news item also suggests that, to prevent theft, returns should not sit in a mailbox overnight.
* Beware of e-mails or phone calls, seeking personal or financial information, that appear to be from your bank, the IRS, your credit card companies, etc. These entities already have this information and don't request it via e-mail or phone. Never provide such information unless you have initiated the call or e-mail. And, never -- ever -- click on a link in one of these e-mails.
If you believe you are a victim of fraud, contact the IRS and its taxpayer advocate service, which has been set up to help people who have been defrauded. Also file a report to the FTC, through its website, and to your local police. Request a free copy of your credit report (from each of the the major credit reporting agencies), as a victime of identity theft, and place a fraud alert on your credit reports. When they arrive, check your credit reports carefully. Look for inquiries from companies you haven't contacted, accounts you didn't open, and unexplained debts. Close any accounts that have been tampered with or opened without your knowledge.
A recent ABC news item (Prevent Tax Time Identity Theft, March 17, 2008) states that the Federal Trade Commission has received more than 20,000 complaints about thieves filing phony tax returns, with names and social security numbers of unsuspecting victims, and receiving their tax refunds.
Following are some suggestions for keeping your information safe -
* Don't use passwords with common information like your birthdate, mother's maiden name, social security or telephone numbers.
* Don't save passwords on your Web browser.
* Update firewalls and other protective systems on your computer.
* Password-protect tax returns that you print to PDF from your tax software to keep sensitive information secure.
* Encrypt tax documents being e-mailed to your accountant.
* Shred any paperwork with personal information before discarding.
* Store tax records and other important documents in a secure area of your home.
* Mail tax returns (certified mail) from the post office or a USPS mailbox. The ABC news item also suggests that, to prevent theft, returns should not sit in a mailbox overnight.
* Beware of e-mails or phone calls, seeking personal or financial information, that appear to be from your bank, the IRS, your credit card companies, etc. These entities already have this information and don't request it via e-mail or phone. Never provide such information unless you have initiated the call or e-mail. And, never -- ever -- click on a link in one of these e-mails.
If you believe you are a victim of fraud, contact the IRS and its taxpayer advocate service, which has been set up to help people who have been defrauded. Also file a report to the FTC, through its website, and to your local police. Request a free copy of your credit report (from each of the the major credit reporting agencies), as a victime of identity theft, and place a fraud alert on your credit reports. When they arrive, check your credit reports carefully. Look for inquiries from companies you haven't contacted, accounts you didn't open, and unexplained debts. Close any accounts that have been tampered with or opened without your knowledge.
On-Line Education
Ever wished you knew more about a subject, but didn't have the time or money to invest in a college-level course? The Pendaflex Learning Center (http://www.pendaflexlearningcenter.com/) provides over twenty on-line courses in a variety of subjects ranging from Astronomy or Thinking Like DaVinci to various software applications to Web Design or Small Business Start-up. Designed to provide an introductory overview of each topic, courses are definitely not basic, nor are they college-level. Great for brushing up on skills or for exploring unfamiliar topics. Lessons are provided 2-3 times per week for 4-8 weeks. Assignments and quizzes can take only a few minutes or up to an hour. There is a test at the end of the course and, when passed, you will be able to print out a certificate of completion. The best part -- it's FREE!
Monday, April 7, 2008
Working Solo?
Check out the Working Solo website (www.workingsolo.com) -- it's chock full of helpful information for solo entrepreneurs -- and, while you're there, sign up for their newsletter.
Sunday, April 6, 2008
100+ Tax Deductions for the Self-Employed
Working Solo Newsletter (http://www.workingsolo.com/) recently devoted an issue to June Walker, a tax and financial advisor to solo entrepreneurs since 1979, offers the following tips on home office deductions:
"1. If you use an in-town studio and home office, both are business deductions. Even if you work out of two or three places, if each is used exclusively for your work then they are all legitimate deductions. ... both the studio in town that you rent and the spare room at the beach rental where you do your three-hour weekend blogging routine are legitimate work locations and qualify for business expense deductions.
2. ... no office sharing allowed. Keep in mind the all-important IRS exclusive use rule: that your office must be yours and yours only. If you're the designer for Clyde Client and your wife handles the tech side of Clyde's site and both you and your wife use the same office -- sorry, no deduction. Here's one way aroudn that. Make one spouse the employee of the other. There are a lot of other benefits to hiring your spouse.
3. Work at home to increase your business transportation deduction. If you do most of your work outside your home you may still deduct costs for the area of your home used exclusively and regularly for your business, no matter how small the area. And by having two work places you'll increase your deduction for auto use or public transportation costs. ..."
You can learn more about home office deductions and receive a complimentary copy of June's List of 100+ Typical and Unusual Self-Employed Business Expenses by visiting June's web site (a treasure-trove of helpful information for the self-employed) at http://www.junewalkeronline.com/. June has also authored Self-employed Tax Solutions. This book answers many of the most common self-employed questions in easy-to-understand language.
"1. If you use an in-town studio and home office, both are business deductions. Even if you work out of two or three places, if each is used exclusively for your work then they are all legitimate deductions. ... both the studio in town that you rent and the spare room at the beach rental where you do your three-hour weekend blogging routine are legitimate work locations and qualify for business expense deductions.
2. ... no office sharing allowed. Keep in mind the all-important IRS exclusive use rule: that your office must be yours and yours only. If you're the designer for Clyde Client and your wife handles the tech side of Clyde's site and both you and your wife use the same office -- sorry, no deduction. Here's one way aroudn that. Make one spouse the employee of the other. There are a lot of other benefits to hiring your spouse.
3. Work at home to increase your business transportation deduction. If you do most of your work outside your home you may still deduct costs for the area of your home used exclusively and regularly for your business, no matter how small the area. And by having two work places you'll increase your deduction for auto use or public transportation costs. ..."
You can learn more about home office deductions and receive a complimentary copy of June's List of 100+ Typical and Unusual Self-Employed Business Expenses by visiting June's web site (a treasure-trove of helpful information for the self-employed) at http://www.junewalkeronline.com/. June has also authored Self-employed Tax Solutions. This book answers many of the most common self-employed questions in easy-to-understand language.
Saturday, April 5, 2008
Suddenly Single in New England?
"... many things don't last forever. Just because a relationship doesn't last forever does not mean it's not good."
SUDDENLY SINGLE RETREAT
A Social Community & Retreat for Divorced Women 40+
BOSTON, MA
JUNE 27-29, 2008
This 3-day retreat promises to help women survive and prosper after a divorce. For details, please visit www.matchgonewrong.com.
Friday, April 4, 2008
Intro
Hi Folks! This is my first blog so, if I make any mistakes, please be kind. The purpose of this blog will be to offer solutions for the various aspects of your life -- work, home, health, aging, etc.
Why do I feel qualified to offer these solutions? I have over 40 years experience in all phases of business operation -- both as employee and employer -- so I can see things from both sides.
Likewise, I am a busy homeowner and mother/grandmother, so I'm always looking for ideas to make life simpler.
I currently own my own business, Business Solutions (www.yourbusiness-solutions.com), which provides virtual and on-site small business bookkeeping/admin services and daily money management (bookkeeping) services to individuals. Most of my clients are elderly, so I also look for programs that will enable them to continue to live independently in their own homes on a fixed income. As a service to my older clients, I distribute a newsletter "The News Carrier" with items of interest them. I also speak, write and consult on a variety of topics. The most popular topic has bee "Identity Theft" and I have prepared a small brochure with tips on preventing identity theft. I will soon have a link in my website to request these items. In the meantime, please make requests to businesssolutions@comcast.net.
I am a member of the "sandwich" generation; my 93 year old mother lives near my sister in a nursing home in South Carolina. While my sister, God bless her, provides day-to-day care, because of my work, I am often able to provide her with the resources and information she needs to continue to provide her wonderful care for my mother.
A lifelong interest has been natural cures and I feel fortunate to have recently become affiliated with an organization that offers natural supplements. Every training I have participated in emphasizes strong ethics and sales skills. I am very excited about the products! Please visit my website at www.itvventures.com/marthacarriere.
After a serious accident last year, I started cleaning out my home in anticipation of moving to a more compatible location and started selling on craigslist and ebay. When I open my ebay store I will post a link here.
As with my newsletter, I will try to verify any information before posting to this blog. If you have any questions or would like to hear about a particular subject, I'd love to hear from you.
Why do I feel qualified to offer these solutions? I have over 40 years experience in all phases of business operation -- both as employee and employer -- so I can see things from both sides.
Likewise, I am a busy homeowner and mother/grandmother, so I'm always looking for ideas to make life simpler.
I currently own my own business, Business Solutions (www.yourbusiness-solutions.com), which provides virtual and on-site small business bookkeeping/admin services and daily money management (bookkeeping) services to individuals. Most of my clients are elderly, so I also look for programs that will enable them to continue to live independently in their own homes on a fixed income. As a service to my older clients, I distribute a newsletter "The News Carrier" with items of interest them. I also speak, write and consult on a variety of topics. The most popular topic has bee "Identity Theft" and I have prepared a small brochure with tips on preventing identity theft. I will soon have a link in my website to request these items. In the meantime, please make requests to businesssolutions@comcast.net.
I am a member of the "sandwich" generation; my 93 year old mother lives near my sister in a nursing home in South Carolina. While my sister, God bless her, provides day-to-day care, because of my work, I am often able to provide her with the resources and information she needs to continue to provide her wonderful care for my mother.
A lifelong interest has been natural cures and I feel fortunate to have recently become affiliated with an organization that offers natural supplements. Every training I have participated in emphasizes strong ethics and sales skills. I am very excited about the products! Please visit my website at www.itvventures.com/marthacarriere.
After a serious accident last year, I started cleaning out my home in anticipation of moving to a more compatible location and started selling on craigslist and ebay. When I open my ebay store I will post a link here.
As with my newsletter, I will try to verify any information before posting to this blog. If you have any questions or would like to hear about a particular subject, I'd love to hear from you.
Subscribe to:
Posts (Atom)
