Taking Care of Your Family’s Future

Why do you need life insurance? It’s actually not something that you get for yourself – it’s for your loved ones. It’s for their future financial security and a way for you to be sure that whatever happens, your family will be stable far into the future.

Life insurance was created to ensure that your family’s lifestyle will not change if you pass away. It’s also used in meeting other financial needs that you family might have in the future. Examples of these needs are: replacing sources of income which might be lost, reducing your mortgage, paying off debt from credit cards and other sources of debt, funding your children’s education, and paying for any expenses that would result from your passing away.

Even if you are still young and healthy, it’s never too early to take out an insurance plan, as doing so would give you a lot of time to finish paying for your plan. Taking out insurance plans early also makes sure that you are always prepared for the worst – life is fragile, and there’s no knowing when it will shatter. Especially for married couples who have children on the way or currently have one, making sure of your child’s future this early is never a bad decision.

So, why do you need to get life insurance? Peace of mind, security, stability – all of these are huge factors in deciding to purchase a plan. However, the biggest reason is your love for your family. Having life insurance is a selfless way of showing that you care for your family, that even when you’re not around, you have a means of taking care of them. All these are good reasons of why you need your life insurance and why you need to start on it now.

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5 Overlooked Tax Deductions from Turbo Tax

5 Overlooked Tax Deductions from TurboTax

According to TurboTax, 51 million tax payers itemized their deductions in 2007 claiming over 1.33 trillion in tax deductions. While 91 million tax payers claimed the standard deduction and reduced their taxes by 654 trillion. Now the numbers do look very good for the standard deduction tax payers but if you don’t look at both deduction methods when preparing your taxes, you could be missing out on some very good deductions.

For five often overlooked federal tax deductions look at state sales taxes paid, reinvestment dividends, charitable contributions, student load interest, and … Read more at 2009 Tax.

5 Overlooked Tax Deductions from TurboTax

According to TurboTax, 51 million tax payers itemized their deductions in 2007 claiming over 1.33 trillion in tax deductions. While 91 million tax payers claimed the standard deduction and reduced their taxes by 654 trillion. Now the numbers do look very good for the standard deduction tax payers but if you don’t look at both deduction methods when preparing your taxes, you could be missing out on some very good deductions.

For five often overlooked federal tax deductions look at state sales taxes paid, reinvestment dividends, charitable contributions, student load interest, and moving expenses related to a job.

State Sales Taxes Paid

For those that live in states that do not have a state income tax, you can deduct state sales tax. And often those that do file for a state sales tax deduction overlook such things as automobile sales tax, sales tax on a boat or an airplane and sales tax on home building supplies. The deduction does phase out around $250,000 for a couple, but is well worth looking into for those lucky tax payers that pay no state income tax.

Reinvested Dividends

If you sold a mutual fund during the tax year and think you have decent capital gains to pay on the fund proceeds, make sure to calculate reinvested dividends properly. Your basis or the amount you paid for the investment increases every time dividends are reinvested. Therefore, you capital gain might not be as large as you first thought.

Charitable Contributions

Small items that you purchased in the process of doing volunteer work for a charity are deductible just like larger checks made directly to organizations. Keep track of mileage you drove and small purchases made for charity, they will add up when you file your taxes.

Student Loan Interest

Student Loan Interest paid by parents of a student are now deductible as if they loan payments were made by the student. The IRS considers the loan payment a gift to the child and the child as paying the loan payments. Quite a nice treat to reduce and often eliminate all tax liability for the student.

Moving Expenses

If you started your first job during the tax year and needed to travel more than 50 miles to get to the location of your new job, you can deduct the costs of moving and the cost of driving. You cannot deduct the expenses needed to secure your first job, but you can deduct the costs to get to the new city where you will begin your career.

IRA Rollover Tips

IRA rollover is defined as a process of transferring funds from an individual’s retirement account into a Traditional IRA or the Roth IRA. Employers make use of this to hold their possessions that have already been multiplied from their retirement plan. Want to know the good news about this? Well, read very carefully because you can already rollover your money on an unlimited basis. This only means that you will absolutely have a good time.

Now, what if you preferred your IRA rollover to be transferred by check? Before the certain custodian releases your check, a 20% maintenance penalty will be applied. Now, to evade from this 20% penalty, the rollover should directly take place from just a single custodian or guardian to another. But in terms of the IRS, the only potential penalty is the taxes incurred.

So how can you be able to avoid this penalty? Well, the answer is to transfer your fund. This is done between the contracts of two financial organizations.  They will certainly not require for a check to be written to you and it will not be made known to the IRS. With this, you will not have the chance to acquire taxes.

There are several IRAs and they just permit one rollover every year. The one-year calendar starts from the time only when the distribution has already been made. Most of these rollovers occur only when people change jobs and prefer to move their 403 (b) or 401 (k) properties into an IRA. Here’s good news: Did you know that most of these IRAs provide more investment alternatives along with a prolongation of income and gains that are tax-free?

These rollovers can take place from an employer’s retirement account into an IRA or even from IRA to IRA shift. The only requirement for an IRA’s occurrence into a so-called Roth IRA is the person’s accustomed gross income not above a defined limit in the tax year upon the rollover’s occurrence.

This is certainly a great way for you and your family. So, what are you waiting for? Transfer your funds and hold your assets now!

How To Save Taxes: Tips For Parents

How To Save Taxes: Tips For Parents

It’s only a new parent that knows how much cost is associated with any new baby – you need to buy bottles, diapers, a crib, high chair, and stroller – all these are needed even before the child learns how to walk and speak and be able to ask you for a pair of designer jeans worth $ 500. Even though it is expensive, parenting is an important and very rewarding job for any person to do in life. There is good news for the parents however. The federal government has offered 2 … Read more at 2009 Tax.

How To Save Taxes: Tips For Parents

It’s only a new parent that knows how much cost is associated with any new baby – you need to buy bottles, diapers, a crib, high chair, and stroller – all these are needed even before the child learns how to walk and speak and be able to ask you for a pair of designer jeans worth $ 500. Even though it is expensive, parenting is an important and very rewarding job for any person to do in life. There is good news for the parents however. The federal government has offered 2 tax breaks, one being the dependant exemption and the other is the child tax credit, so that they can prepare with proper financial planning for their family.

Around $ 3000 per year worth of deductions from your taxes can be obtained through the dependant exemption tax break till your child is 18 years old. This is an extra benefit the IRS provides over and above giving the standard exemption of tax covering basic expenses of livelihood. Single parents can take only one exemption and married couples can opt for both these exemptions every year.

Your savings through this exemption are determined in accordance with the tax bracket you are in; the higher this bracket, the more your savings will be as long as your income is not high enough that it does not qualify for any exemption. The dependant tax exemption is restricted for married couples who jointly file and have an adjustable total income higher than $300,000. Certain limits exist for single parents as well; so it’s important for you to take some time to consider these facts for both single parents and married couples in order to know that your income is within that limit. In case you qualify, you will then need to fill out the particular section of the form and supply the certification of adoption, or the children’s social security numbers.

The other tax break, child tax credit, can be availed by married couples having a total income not more than $ 13,000 and who file jointly; again, remember that the income limits frequently get revised. With this tax credit, up to $ 1000 can be received per child.

For claiming the credit amount, one needs to first complete the worksheet for child tax credit available in the IRS web site. A social security number or an identification number for adoption will be required for qualification. It is advisable to consult a professional for your tax plan and tax information as the taxation laws get revised from time to time.