Jill Russo Foster

Tips for Successful Personal Finances

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Getting Rid of the Clutter

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It’s summer and wedding season for us.

Our dilemma, what to wear.  You may be thinking we have a closet full of clothes to choose from and you are mostly right.  Lately, we have been getting rid of stuff.  So here’s what we have done so far this year:

Gowns and cocktail dresses – donated to our local high school for the prom

Suits – Men’s and Women’s – lots of peoples in need for clothing in good condition

Clothing – Check out your local shelter or other organizations that are in need.

Cleaning out and giving back all in one tiny action.  All this has streamlined our closets and hopefully made a difference in the life of someone else.

For more suggestions, view my resources page.

Getting Rid of the Clutter

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As we continue to clean out, we have donated several electronics (old computers, printers, scanners, cameras and more) to great local organizations in need.

This is really easy to do with the help of the Cristina Foundation.  They have a website that you can search local non-profits in your area and see what they are in need of.  If you have the item(s), you connect with them for the drop off and/or pick up.  It ‘s a great way to donated and help out others in need.

For more suggestions, view my resources page.

Getting Rid of the Clutter

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As we clean out stuff from our home, I wanted to share with you some great resources.  I like to give items to people or charities that can make good use of the items, instead of just tossing.

We had too much luggage.  Yes, we travel and need both small and large suitcases as well as carry-ons, but we had too much!  eBags has this great program called Trade In Trade Up.  You can donate two suitcases in good condition and in return you get a $25 credit at eBags.  We donated two suitcases in June and recently received our credit.  This weekend, we received our new eBags items.  eBags isn’t only luggage, it much more including has back to school items.

For more suggestions, view my resources page.

 

 

Who said taxes are free?

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taxes and uncle sam
 

Yes, it’s that time of year again – tax time. We’ve had some delays on the government’s end. You won’t be able to file early in January (if that was your plan). That’s tough luck if you were hoping to get your refund right away. But, it could have been worse. We may have had to wait until late March.

The delay is caused by last minute tax changes.  Forms have to be adjusted before your tax preparer can submit your taxes.  The earliest you can file electronically this year is January 30th. And, you may have to wait until late February or early March if you’re claiming credits related to energy, property or business,

In the meantime, you can get your taxes prepared. 

Don’t delay things on your end just because you can’t file. You don’t want to wait until the last minute then realize you can’t find the all important paperwork to back up your tax return.

You may be able to get your taxes prepared for free AND from a reputable source.

There’s help if you’re a senior or have a low to moderate income.

Go to www.IRS.gov to find information on the VITA program (Volunteer Income Tax Assistance), the TCE Program and AARP Tax-Aide.

There you can learn

  • If you qualify for the program
  • What to do bring to the meeting
  • Locations near you

You don’t have to be afraid to use these services. The tax preparers at these programs are certified volunteers who work under a qualified supervisor.  The location near me is at the local community college and is supervised by a CPA and Chair of the Accounting Department.

Each location will have different hours, so check before you make the trip. Some will take appointments and some are walk-in only.

If you qualify, you may save yourself a few hundred dollars. You’ll get the work done at no cost to yourself and a trained preparer can catch details that might net you a bigger return.

Reliable Tax Preparation for Budget-Challenged Families

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Yes, it’s that time of year again – tax time! If money is tight, you may be hoping for a refund. But, like many people, you probably have to use part of your refund to pay for having your taxes done.

But, what if you didn’t have to pay a tax preparer? If you have a simple tax return, and you earned less than $50,000, you can qualify for FREE tax preparation with VITA (more on VITA below). Or, check out AARP Foundation Tax-Aide, which has different guidelines by state.

These are the two safest and most reliable options for no-cost income tax preparation (that I know of.)

I know there are some other companies that promise free preparation, but watch for these restrictions:

  • Do they offer to do your federal return for free, but charge you for the state return?
  • Do they restrict your appointment to the first two weeks of February? (I’m really organized, but even I have to wait for W-2’s and 1099’s, etc.)

With VITA and AARP, you don’t have to rush and they do both Federal and State (if local rules allow).

Find out if you qualify for VITA (Volunteer Income Tax Assistance)

Volunteer Income Tax Assistance (VITA) has volunteers trained by the IRS to do tax preparation for people who are low to moderate income (families earning less than $50,000.) There are locations in every state, typically at public buildings (like libraries, schools, or town government offices). All have different days and hours.  Find the location that meets your schedule by visiting the IRS website or calling (800) 906-9887.

Find out if you qualify for AARP Foundation Tax-Aide

AARP also offers tax preparation services under their program AARP Foundation Tax-Aide. The program gives special attention to those over 60 years of age. There are eligibility requirements that must be met to take advantage of this service. For more information go to AARP.org

These programs are both designed for those with relatively simple tax returns. People who have more complicated returns that include rental property, buying and selling of investments, or businesses are usually not eligible. Check with each organization for locations and eligibility requirements.

Remember: this year April 15 falls on a Sunday and Monday is a Federal holiday, so you have two extra days to file your taxes!

Smart Charitable Giving

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The end of the year is coming up. People are meeting with their tax preparers to find out how to increase their deductions.

Now is a great time to increase your charitable donations. The charities know it too, so they increase their advertising this time of the year. Most of them look like great causes, but, you need to determine if the charity is legitimate and how your donation will be used.

Choosing a charitable organization can be challenging. Here’s what you need to look for:

  • They must have a 501(c) tax status if you are planning to deduct this on your IRS tax return.
  • Find out how much of each dollar is used for the cause, versus how much is used for administration expenses. The higher the dollar amount used for the cause, the better.

How do you find that information? Go to www.Give.org before making your donation.

Once you have chosen your charities, make sure you have the proper documentation for tax purposes.

  • For monetary donations, a cancelled check can be your receipt.
  • For non-cash items such as food, clothing, household items, furniture etc., you will need to make an itemized list of the items with the value. Your tax preparer can help you to determine the value of each item. Make sure to get a receipt for your donation. Attach this to your itemized list and keep it with your tax records.

Connecticut income tax increases begin this month

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Changes for Connecticut Residents

When you open your paycheck in August you will notice that it’s smaller.  The new CT income tax deduction took effect August 1, but it went into effect retroactively from January 1st (7 months past).

With only five months left in the calendar year, the money has to be made up.  From now until the end of the year, you will be having more than double the CT income tax withdrawn from your paycheck to catch up.

Come January 1, 2012, you will go back to paying the regular new income tax amount.

Check with your tax preparer, but it is my understanding that the tax increase will not affect you if you are filing your taxes as single and earn less than $50,000, or married and earn less than 100,000. If that’s you, you won’t see a difference in your paycheck now or  in January.

Connecticut Sales Tax Increases

No matter your tax bracket, you will be paying more sales tax when you shop in CT.  In case you didn’t know, CT shoppers are now paying 6.35% as of July 1 (up from 6%).  And you will pay it on more items.  Some items that were tax exempt in the past are now taxable.  For example, you didn’t used to pay sale tax on clothing under $50, but now you will as you shop for back-to-school.  Remember that there is a tax-free week for clothing from August 21 to 27 for purchases under $300.00, so you may want to plan your shopping ahead.