Don’t Get your Refund Early

Tax Act

With tax season coming up, many people are already planning how they will spend their tax refund. In order to get more people coming through their doors, accounting companies are promising to give you the expected refund on a secured credit card as soon as your taxes are filed. In these hard times this is a tempting offer. After all, who couldn’t use a little extra money during these economic times? Although you may be tempted by these claims, there are a number of reasons why you shouldn’t be depending on this type of refund anticipation loan to pay off your bills.

By using this refund anticipation loan instead of simply waiting for your refund check to be mailed to you, you are looking at losing money over the long term. The amount of fees that come with using this “Emerald Card” are staggering. Unless you are in significant need of your tax refund right away, there is a lot of benefits to simply waiting a little bit longer to receive your money. Unless you are about to file for a Minneapolis bankruptcy and are advised to take this type of loan by a Minnesota bankruptcy lawyer, you should consider the number of fees that are included with this type of loan.

There are a number of fees associated with using an Emerald Card to collect a refund anticipation loan. Each time you want to use your Emerald Card at the ATM there is a $1.50 fee that will come out of your tax refund anticipation loan. You may think that you can get around this fee by simply walking into your bank and talking to the teller. However this does not work either as there is a 1.5% fee on any withdrawals that are taken out. These are only a smattering of the fees that come with accepting a refund anticipation loan. Although it may be necessary for some who are truly desperate for the money, in the majority of scenarios it is a much better idea to simply wait a few extra weeks and allow the government to mail you a check for your refund.

Tips for Tax Lien Investing

Tax Act

When it comes to tax lien investing, there are several tips you need to keep in mind. First of, it would be better to buy liens at smaller countries. The individuals who are bidding for large companies to invest their money in tax lien certificates are institutional bidders. Since there will be less liens to go around, it’s possible they won’t bother to attend tax lien sales at smaller countries. Besides, the liens may also be smaller.

If you buy smaller liens, then you may get higher interest rate because there will be less competition. It would also be advisable to stay during the off times of a sale. Prime examples of these are lunch breaks, end of the day, and last day of a sale. When you catch the people asleep, then you can get the good liens.

Also, try to go up to the clerk and ask if there are any more liens for sale. This is very important because there are investors who will purchase too many liens and at the end of the day, they’ll realize that they can’t afford to purchase all of them. These will not be re-auctioned by the county. For this reason, most will sell them to you over the counter at the maximum percentage interest.

Setting max bid amounts is another thing you should do. Don’t hesitate and wait until the bidding has settled and the bidders have dropped off. Afterwards, you can go for the decent sized increase but don’t forget your limits. It would also be a good idea to buy from company names that you recognize. Buying from commercial properties would mean that the liens will definitely redeem.

Remember that in tax lien investing, you put your money into tax liens that are created by county governments. Large sums can be provided but you may also face risks. A great tip would be to understand the risks before getting involved in this market.

Investing in tax liens is lucrative. That’s because you can get higher returns unlike in traditional forms of investment. If you foreclose on the property and sell the house, then the returns can be amplified. But as mentioned earlier, this isn’t a foolproof investment and it could be difficult to get your money back if the IRS has a lien on the property or if the homeowner files for bankruptcy.

Tax Deductions Can Help To Improve Your Bottom Line

Tax Act

Small Business Often Overlooks Tax Deductions

You can have a successful tax season in your small business if you plan all round the year so that the deductions are maximized. This requires that tax matters should be kept in mind at all times, and you must constantly look for methods of reducing your bottom line, while continuing the profitability of the company.

Expenses for Start-Up

The expense of starting a business is quite often overlooked by small businesses and this can give one quite an advantage when the tax season is being considered. It is possible to deduct the expenses incurred for overhead,marketing and other expenses that are related and this can be done for a period of five years after starting the business. However the deduction of such expenses is only allowed after you have actually started the business and cash flows have commenced.

Education and Training Has To Be Continuous

A continuity in training and education, makes you eligible to deduct the expenses incurred for this. Attending a conference on new trends for treatment of cancer in horses allows a veterinarian who specializes in treating horses to deduct the expenses of attending that conference. As the conference is related to the field in which the veterinarian is practicing this seminar can be a part of the deduction form the yearly tax. However if he is not practicing in that field and only treats smaller animals, he would not be eligible for any deduction. The rules for the classes that qualify the deduction are quite strict.

Fees for Professional Services

Any professional fees that you pay to your accountant can be deducted from taxes.If however the work is for future years, the benefit has to be spread out over the term envisaged. If you have hired an architect for designing a building that may take two years to construct,the architects fees have to be spread over the period during which the building construction takes place.

Volunteer Tax Assistance

Volunteer Tax Assistance is available from an IRS sponsored program this tax season. This community-based program is operated by volunteers who will assist with 2010 tax preparation. The top ten items the IRS wants taxpayers to understand about the IRS sponsored volunteer programs are:

  1. There is tax assistance available for taxpayers that are 60 years old or older.
  2. This program offers free preparation to individuals or families who earn $49,000 or less.
  3. Electronic filing is available at all volunteer sites
  4. The volunteers have been educated on topics such as the child tax credit, homestead tax credit, and the elderly tax credit.
  5. Several tax assistance sites have volunteers who can help people with English as a second language.
  6. Partnerships with community organizations make it possible for the IRS to offer more 12,000 tax preparation sites. All sites offer the services free.
  7. The AARP tax-aids do primarily assist people who are 60 and older, yet they are willing to assist any taxpayer with low-to-moderate incomes.
  8. The Armed Forces has a volunteer tax council that is trained to understand tax issues that are specific to military individuals and families. There are volunteers available for all branches of the military.
  9. City information hotlines, community organization, and the public libraries can provide information on the locations and dates for the volunteer tax assistance programs for 2010.
  10. Call the toll-free number for the IRS at 1-800-906-9887 if you are having trouble locating a volunteer tax assistance program near you. If you have internet access, you can gain information using the following web address: Visit to find an AARP Tax-Aide location or call 1-888-227-7669 (888-AARPNOW).

It is wonderful when  community volunteers work together to help people prepare their tax forms. No one should feel alone or overwhelmed while preparing their 2010 taxes. The IRS Volunteer Tax Assistance, 2010 is available as a community based program.