Tax Talk 
with

Tax Professional
Wanda Jackson

To contact us:

E-mail: info@WhereWomenGrow.com
Text Box: It’s getting close to the end of the year. Here a list of items to put together to ease the stress of income tax preparation. Some of the items to get you started are: W2’s from all employers 1099-int—interest statement 1099-div—dividend earnings 1099B— stock sales 1099R—retirement distribution 1099G-state refunds and/or unemployment benefits 1098 -mortgage interest statements 1098T - tuition statements from colleges SSA statements for social security benefits received Student loan interest statements Financial statements from non profit organizations, i.e., CBN, United Way, and Red Cross for cash donations Request a statement of contributions from your church or synagogue Ad valorem taxes (tag tax) Real estate taxes Request a printout of all prescription costs for the year Total all medical expenses, co-pays, ambulance trips, any medical supplies, doctor visits, dental expenses, eyeglasses, contact lens, and x-ray cost If you pay for medical insurance list your yearly premiums Request a receipt from non profit organizations for any non cash charitable donations Total volunteer miles driven Total medical miles driven List all unreimbursed employee expenses, i.e., uniforms, union dues, license renewal, classes, work related magazine subscriptions or journals, steel toe boots, work tools, cost of laundering uniforms Request a statement from your child care provider with the providers tax ID number or social security number if an individual, address, and total cost for each child Most financial statements are required to be mailed by January 31st. Some brokerage statements may be as late as the end of February. Most IRS letters are generated due to unreported income, i.e., unreported w2 income, stock transactions, interest and dividend income, withdrawals from retirement accounts (401k or IRA), and unemployment benefits received, so make sure you have received all tax documents before filing your tax return. Wanda Jackson is a Tax Professional with H&R Block and has been preparing taxes for six years. Call for an appointment at 404-378-5924. Offices open Jan 5th 2009. It's All About Money Text Box: Advertise Here Text Box: The Greatest Gift is to Help Others Help Themselves Text Box: BLOG

 

        PAY YOURSELF FIRST

Whatever you do, you should set money aside for yourself first.  You are your best investment and whether it’s an IRA, 401K, or a savings account, put at least  10% away for savings.  An easy way to save is to have the funds directly deposited into your account of choice. 

Teach your children to save 10% from their allowance.  Another easy way for children to save is to collect change in piggy banks.  At the end of a year you may be surprised at the grand total of these saved coins.

If you decide to help family or friends in need, provide the need, not cash.  If you provide cash, it may not be used to fulfill the requested need, i.e., pampers, food, car seat, utility bill, or rent.

Purchase your favorite coffee blend and carry to work in a travel mug, instead of purchasing specialty coffee from expensive shops.  This could save up to $25.00 a week.

Preparing your lunch at home could save up to $50.00 a week.

Never co-sign for a loan that you are not prepared to take full responsibility for, as this often occurs with children, grandchildren, nieces, nephews and friends.  Creditors will come after both parties in the event of a default on the payments.  Garnishments or negative credit ratings will  be the end result.

Always avoid late charges.  If you can’t pay on time because you don’t have the funds, call and make arrangements with the company.  But if you don’t pay on time because you constantly forget, set up automatic payments.

Require adult children living with family to contribute to household expenses.  This teaches financial responsibility.  It teaches them how to manage their money.  It teaches them to value earned money.

 

The benefits of saving now can best be shown by this  testimony from 71 year old retiree Mary S.  “I took out two retirement plans besides the company plan.  I couldn’t live off my deceased husbands retirement.  It wouldn’t have lasted me two years.  When a spouse dies, Social Security only increases if the deceased spouses payment was higher than the surviving spouses payment.  For me, that meant an increase of only $10.oo a month in my payment.  You do not receive the decedents check.  What it means for most retiree’s is that your income is reduced by half, while your expenses stay the same.

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