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Missing or bogus tax forms? Here’s what to do

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A couple of my Facebook fans haven’t gotten their taxes done because they’re missing key forms–one has a W-2 that’s incorrect, while the other is missing a 1099-R.

These aren’t unusual problems, so I’m hooking you up with the resources you’ll need if you’re facing a similar situation. Here’s what to do:

Gather relevant information. In the case of a missing or incorrect W-2, you’ll want to have handy the employer’s exact name, address and Employer Identification Number (EIN) if possible. (You can find the EIN on a previous year’s W2, if you have that.) It’s also handy to know what the missing or incorrect form SHOULD say, if you have that information from your year-end pay stub or bank records.

Call the IRS at 800-829-1040. Expect to spend a fair bit of time on hold, as they’re a bit busy this time of year. In the future, you can call the agency if you haven’t received a form by Feb. 15 (in other words, don’t wait until the last minute).

Explain the problem. With missing or incorrect W-2s, ask the agent to open a Form W-2 complaint. You’ll need to fill out a Form 4852, which is a substitute W-2 you fill out using the information you have, such as a year-end pay stub. You can find the form and other information here. Missing 1099s often aren’t a big deal, since you don’t need to attach them to your form, with the exception of the 1099-R, which reports tax withheld on retirement plan distributions.

Expect this to delay your refund. If you can’t get a corrected form in time (which is doubtful, at this point), your refund may be held up while the IRS verifies your information.

You may need to file an amended return. If you get a corrected form after the tax-filing deadline and the amounts are different than the ones you entered on your form, you may have to file a 1040X amended return.

You could also consider filing for an automatic six-month extension. You’ll still need to pay any tax owed by April 17, and could face some penalties if you underpay, so use this as a last resort.

20 best cars for teens

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My good buddy Des Toups has a nice piece at CarInsurance.com about the best cars for teens. He started with the 65 cars that made the Insurance Institute for Highway Safety’s 2008 Top Safety Picks list, then whittled them down to those with likely price tags of $15,000 or less, average or better reliability, and gas mileage of 20 mpg or higher. He also has some good suggestions for how to keep somewhat of a lid on insurance costs–although make no mistake: you are going to feel it deep in the wallet when you insure a teen driver.

The #1 car? An Audi. For the rest of the list, click here.

More mega millions madness: Money pros weigh in

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Here’s a recent post from Credit.com where a bunch of us money types hold forth about the lottery:

Mega Millions Madness: Money Pros Weigh In (via Credit.com)

Let’s face it. When it comes to things like lottery jackpots, personal finance experts and writers tend to be wet rags. We usually put lottery ticket purchases in the same category of money sins as bottled water or spending $5 for a cup of coffee that can be brewed at home for 25 cents. But whom…

[Read more…] about More mega millions madness: Money pros weigh in

You’re not going to win the lottery. But if you do, read this.

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With so much talk about the record Mega Millions jackpot, I thought I’d throw in my two cents:

First cent: You’re not going to win. The odds are ridiculous.

Second cent: If you should win this or any other windfall, even a much smaller one, you’ve got some work ahead of you.

If you’ve never had money, you may not realize how much effort it takes to manage it wisely–and not lose it. You don’t want to wind up like the folks featured in SmartMoney’s “Why lottery winners go bankrupt“–lottery winners who went bust, or even to jail.

So here’s my MSN column “You won the lottery. Now what?” When you don’t win, you can still read it for advice about what to do should any major windfall enter your life.

The weekly round-up

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Spring break starts tomorrow for my kiddo, so I won’t be hanging out at the computer–we’ve got some serious goofing off to do. Therefore, I’m posting links to some stuff I hope you’ll find interesting, by myself and others, a day early.

Bob Sullivan of MSNBC posted a very scary column about how “Hackers turn credit report websites against consumers.” This one’s a must read.

GoBankingRates.com posted my column “Biggest Myths About Credit Scores.” We know so much more about  how these formulas work than we did a decade ago, but some of the same myths persist. Falling for any of these could cost you.

Fox Business picked up Jodi Helmer’s piece for CreditCards.com “Seven Easy Ways to Go Green with Your Finances,” to which I contributed a thought or three.

Donna Freedman’s latest for MSN, “A cheap death: Donate your body,” may take frugality a touch too far for some, but it could be just the ticket for those who want to benefit science and education while avoiding big burial costs.

Are you pregnant, or hope to be so soon? You might want to check out the baby planner created by “Generation Earn” author Kimberly Palmer. You can find the link, and read about the soon-to-be mom that Palmer’s advising, at Daily Worth’s Money Fix 3.

My MSN column this week “Lose your house, get socked by the IRS?” is about the coming expiration of the Mortgage Debt Relief Act, which protects homeowners from facing a tax bill after they lose their homes to foreclosure or short sales.

Want to know more about Roths? Check out these links

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Nearly 150 bloggers so far have contributed posts to the Roth IRA Movement, which financial planner Jeff Rose organized after speaking to a group of college seniors and discovering none of them knew what a Roth was, or how important it was to their financial futures. (It’s “the best thing since sliced bread,” and really, really important, as you can read in my post “Young and broke? Open a Roth.”)

You can read Jeff’s post here, which is also where you’ll find links to the other 146 (so far) posts. That’s probably more about Roths than anyone can absorb, so here are a few good ones to start with:

Studenomics: “Read This if You Want to Retire Before 70.” An excellent, clear guide to why it’s so important to contribute to a Roth while you’re young.

House of Rose: “I Opened My First IRA Account. Age 22.” The blogger’s personal story of early enlightenment.

Parenting Family Money: “Opening a Roth IRA for a Child.” An early start is good; an even earlier start is better.

Bible Money Matters: “10 Reasons Why I Love The Roth IRA (And Why You Should Too).” If this doesn’t convert you to the wisdom of a Roth, what will?

Amateur Asset Allocator: “Roth IRA: How Do I Love Thee? Let Me Count the Ways.” This blogger wrote a sonnet. Seriously. You must read this.

Lauren Lyons Cole: “How To Pay Taxes Like the Rich.” Why has no one given financial planner Lauren Lyons Cole her own TV show yet? She’s delightful, and hits the highlights of the Roth in a two-minute video.

Please share these links with your friends and anyone you know who isn’t already contributing to a Roth. Help us get the word out about this wonderful vehicle for future financial independence.