Prepaid Debit Cards for Income Tax Refunds

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Don’t look now but prepaid debit cards are making their way into our income tax system. Several State Governments and now the Federal Government are experimenting with ways to refund taxpayers directly to reloadable debit cards instead of the usual tax checks. I guess we shouldn’t be surprised.

For a few years now several government agencies on all levels – all the way down to the county and municipal levels – have been trying feverishly to cut costs. Well, it turns out that one of the more expensive things they do is cut checks in order to pay out benefits and tax refunds. And they can save a load of cash by switching over to debit cards.

A prepaid debit card is a natural for these kinds of transactions. The agencies don’t have to pay for the cost of producing or distributing the cards because many prepaid card companies are more than happy to do that. The companies foot that bill because they’re able to put their product in the hands of lots and lots of new customers. The prepaid companies figure that many of these new customers will end up being repeat customers so they stand to gain some long-term business. It’s a big win for them.

And of course it’s a big win for the government agencies too. They save a lot of money because their processes get more streamlined. Plus, they’re able to do it all more quickly too. That’s why you’re seeing such things as unemployment benefits, railroad pension benefits, and more being distributed via prepaid cards.

It’s even a win for the citizens who receive the refunds. That’s because each government agency is usually able to cut a nice deal with the card companies so the refund recipients pay no fees on the cards – so they get the cards for free. And the cards are immediately usable so there’s no check cashing necessary. It’s a pretty sweet deal all around.

Advantages of Incorporating in Nevada

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Nevada has spent the last several years revising its corporate code to become more suitable to small, privately held companies to incorporate in.

Nevada boasts no corporate taxes, maximum privacy and protection of private assets.  Other benefits include; many tax advantages, total privacy of shareholders, nominal annual fees, and no minimum initial capital requirements to incorporate.

Some of the tax benefits include no state corporate taxes, no franchise tax, no tax on corporate shares, and no personal income tax.

Probably the most appealing advantage is the protecting to your personal assets when you incorporate your business in Nevada.  The way a corporation is set up completely separates your assets from that of the business.  The business becomes its own entity even if you are the only owner.  In the case of a sole proprietorship, if a lawsuit is filed against your business your personal assets may be seized also.  Incorporating in Nevada provides you with a corporate veil that is almost iron-clad.  In the last 30 years the corporate veil has only been pierced twice.

The law that Nevada has established to protect personal assets from individual business owners also protects corporate officers and directors from any person liability.  As long as the company acts in a lawful manor Nevada offers unbeatable corporate protection.

State residency or the need to hold meetings in the state of Nevada is not necessary.  Stockholders, directors and officers do not need to be residents of Nevada.  They don’t even need to be U.S. citizens.

Nevada is the one of the best states to do business in. If you set up your business and incorporate it in the state of Nevada you will be able to take advantage of all the tax benefits and be protected in every way possible, there is no better way to run your business.

By: Shannon John

Marketing Manger, Laughlin Associates, Inc.

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Should You Hire An Outside Bookkeeping Business?

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Your business is starting to grow. You’re hiring new employees. You’re considering adding a health plan. You might even move from your cramped storefront to a more luxurious space across town. This growth is good news. But it also comes with a price. Your business is gobbling up your free time like never before. You need relief. It might be time to hire an outside bookkeeping business to provide it.

Your talents lie in finding the right employees for your business, crafting marketing plans that attract attention and securing new clients and customers. Spending too many hours balancing your books, tracking unpaid invoices and crafting expense reports is not a good use of your time. You should always be concentrating on income-producing activities. Bookkeeping work, while critical to the financial health of your business, is definitely not an income-generating activity.

That’s why hiring an outside bookkeeping business is a financially wise move for you and your business. A bookkeeping service will handle your financial matters, tracking invoices, revenues, expenses and wages. It will compile the information you’ll need to file your taxes every way. And it will help you decide on whether it makes financial sense to move to a new location or stay put for another year.

Hiring a bookkeeping service will cost you money. But you’ll have to decide if this expense is covered by the amount of free time outsourcing your bookkeeping needs will leave you. Your time is valuable, remember. If you have more time to work on new advertising campaigns or develop new products or services, your business will grow all that much faster. If you have more time to interview potential new employees, the odds are better that you’ll land workers who are as passionate about your business as you are.

Not all bookkeeping businesses are built equally. Some may be operated by Certified Public Accountants (CPAs) while others may be staffed with high-school dropouts. Before outsourcing your bookkeeping, you’ll definitely want to investigate the quality of the employees. Having CPAs around is one indicator that this company knows what it’s doing.

Business owners never enjoy adding a new expense to their bottom lines. But businesses thrive when their owners make the right investments in them. Hiring an outside bookkeeping service is one of those expenses that more than pays for itself in the future.

IRA Rollover Rules

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When does an IRA rollover occur? This occurs upon cash withdrawal from a certain qualified retirement plan and upon contributing all or a part of it in a span of 60 days to a new qualified plan. In accordance with the Internal Revenue Service’s (IRS) policy, the rules of IRA rollover permits individuals to waive their 60-day rollover prerequisite, but they must meet some qualifications in order for them to be qualified for the waiver.

The IRS is very considerate when it comes to the extension of the 60-day requirement for the rollovers. To cite an instance, when Hurricane Katrina devastated the United States, tax-payers were trapped in a hard situation thus, making them eligible for the waiver. So, the IRS permitted them to return their recovery effort to another qualified account without fine or penalty.

But, the rules of IRS when it comes to rollover are not that compassionate because only single rollover is permitted in a span of 12 months.  If you want to break those rules, beware! You want to know why?  You will unfortunately pay the taxes on the total price of the fund.

But, there are still substitute transactions that are less dangerous. Your custodial company must update the IRS with the roll-over checks but, the so-called direct roll-over is not reported to them. When it comes to transfer, there is absolutely no regularity limitation but, the process of transferring your fund numerous times is costly because custodial companies usually charge fees for conversions and withdrawals. In addition, you will not know the transferable assets which must be liquidated. A stock holding to be liquidated is absolutely not a good idea because you will just lock yourself in a loss that already has an existence on your paper.

The moment you make approximately less than a sum of $100,000, you can already use rollovers to convert from a customary to a Roth account. But, the consequence is that you need to pay the income taxes on whichever funds that were created with the use of pre-tax money.

Now that you already know the IRA rules, you can have more chance in managing your accounts the right way.