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Taxes

Weekend reading: Purging paperwork, unpayable taxes and saving for college

May 1, 2015 By Liz Weston

taxesOne of the great things about being a columnist is getting access to experts who can help you with problems in your own life–under the guise of helping your readers, of course. Recently I was lucky enough to interview three smart CPAs who had great advice about purging paperwork from our lives, and have already implemented their suggestions. Paperlessness, here I come!

Another column that got a good amount of attention was one on two-year degrees that pay well. Not everyone wants or needs to go to a four-year school, and some are better off. Here are those stories plus the other columns I did for Reuters last month.

Financial records: What to keep, what to toss

I don’t make New Year’s resolutions. Instead, I resolve every tax season to get a better handle on my paperwork — with mixed results. This year, I turned to three certified public accountants to find out what apps, software and strategies they use to keep track of everything.
Two-year degrees can really pay off
Steven Polasck of Corpus Christi, Texas, liked math and science in high school. He considered attending a four-year college but ultimately decided to use his strengths to get a two-year degree in instrumentation from Texas State Technical College. He has not looked back. “I went to work on the Monday after graduation,” said Polasck, 27, who monitors and fixes systems at a Valero Energy Corp refinery. “The first year I made almost $80,000.”

College savings take a dive – study
Average amounts saved for college have fallen 25 percent since last year and fewer middle-income families are saving for higher education, even as parents overwhelmingly endorse its value as an investment, according to “How America Saves for College 2015,” the latest survey by education lender Sallie Mae.
What to do when you can’t pay your tax bill
Affluent clients facing a big tax bill often have one of two reactions, according to CPA and financial planner Jerry Love: They either try to avoid filing or they want to negotiate a deal. Neither is a good strategy, he said.
College watch list a ‘caution light’
Regulators recently made public a once secret watch list of 556 colleges under scrutiny for financial irregularities. But inclusion on the list doesn’t automatically mean the schools are about to fail, according to Department of Education regulators, college officials and even the reporter who triggered the release of the list with his Freedom of Information Act requests.

Filed Under: Liz's Blog Tagged With: 529 plans, associates degrees, can't pay taxes, College Savings, IRS, paperwork, purging paperwork, tax bills, Taxes, two-year degrees

Q&A: Filing joint tax return while not married

April 20, 2015 By Liz Weston

Dear Liz: Is it possible to file a joint tax return if you are not married but have lived together for more than seven years? We’ve owned property together for nine years.

Answer: What matters to the IRS is how your state treats your arrangement. Most states don’t recognize common law marriages, in which two people live together but don’t have a marriage license. But a few do.

The states that currently recognize common law marriages under some circumstances include Colorado, Iowa, Kansas, Montana, New Hampshire, South Carolina, Texas and Utah, according to the National Conference of State Legislatures.

States that recognize common law marriages entered into prior to certain dates include Pennsylvania before Jan. 1, 2005; Ohio before Oct. 10, 1991; Indiana before Jan. 1, 1958; Georgia before Jan. 1, 1997; and Florida before Jan. 1, 1968, according to the NCSL.

Also, most states do recognize common law marriages from those states where they are recognized, said Mark Luscombe, principal analyst for Wolters Kluwer Tax & Accounting. In other words, if you move from a state where common law marriage is recognized to one where it isn’t, your union may still be considered a legal marriage.

Same-sex marriages are somewhat different, Luscombe said. The U.S. Treasury and the IRS have ruled that same-sex couples who were legally married in jurisdictions that recognize their marriage are considered married for tax purposes, even if the state where they currently live doesn’t recognize their union.

Confused yet? Talk to a local tax pro who can advise you about the status of your arrangement.

Filed Under: Q&A, Taxes Tagged With: joint returns, q&a, Taxes

Wednesday’s need-to-know money news

April 15, 2015 By Liz Weston

Zemanta Related Posts ThumbnailToday’s top story: It’s tax day! Also in the news: Apps to teach your kids about money, personal loans vs credit cards, and why a good FICO score matters when buying a home.

Time’s Up! It’s Tax Deadline Day
No more excuses!

5 apps to teach your kids about money
Just in time for Financial Literacy Month!

The Pros & Cons Of Personal Loans vs. Credit Cards
It’s all about the interest rate.

The One Graph That Explains Why a Good FICO Score Matters for Homebuyers
The better the score, the better the terms.

Filed Under: Liz's Blog Tagged With: apps, Credit Cards, Credit Score, graphics, kids and money, Personal Loans, tax day, Taxes

Tuesday’s need-to-know money news

April 14, 2015 By Liz Weston

bigstock-U-s-Income-Tax-Return-Form-28476797-e1390508229663Today’s top story: How to finish your taxes before the deadline. Also in the news: How to file for a tax extension, when your employer can check your credit, and why you need to pay close attention to your parents’ financial advisors.

The Procrastinator’s Guide to Finishing Your Taxes
The clock is ticking.

How to File for an Extension
Buying some time.

When Can Employers Check Your Credit?
Far less often than you might think.

Hidden Dangers With Aging Parents’ Financial Advisors
Paying close attention is vital.

The Ultimate Tax Day Guide: Post Office Hours, Freebies and Expert Tax Refund Tips
Free shredding!

Filed Under: Liz's Blog Tagged With: aging parents, Credit, credit checks, financial advisors, tax day, tax extension, Taxes

Friday’s need-to-know money news

April 10, 2015 By Liz Weston

teen-creditToday’s top story: Finding the best credit card for your teenager. Also in the news: Financial date nights, what to do if you can’t pay your taxes, and keeping old credit cards on your credit history.

5 Credit Cards for Teens
How to make sure their first card is the right one.

Avoid money fights with financial date nights
Dinner, a movie, and money talk.

Can’t Pay Your Taxes? How to Get IRS Relief
Don’t ignore the problem.

Use Recurring Charges to Keep Old Credit Cards on Your Credit History
Avoid the ding of a closed account.

Filed Under: Liz's Blog Tagged With: Credit Cards, credit report, Credit Score, IRS, recurring charges, Taxes, teens and money

Tuesday’s need-to-know money news

April 7, 2015 By Liz Weston

credit-cardsToday’s top story: The pros and cons of paying your taxes with a credit card. Also in the news: Discharging private student loans, financial rules for 40 year-olds, and what FICO’s new credit score means for you.

Should You Pay Your Taxes With a Credit Card?
The pros and cons.

Can You Discharge Private Student Loans in Bankruptcy?
It won’t be easy.

40 Financial Rules For 40 Year-Olds
It’s time to get serious.

FICO Will Use a New Credit Score That Includes Your Bill Payments
What this means for your score.

Smart Ways to Trim Your Water Bill This Spring
Gardening season is nearly upon us.

Filed Under: Liz's Blog Tagged With: Credit, Credit Cards, Credit Score, FICO, Taxes, tips, water bills

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