The Tax Goddess Blog

Debt - What do I do?

Today I was asked how to get out of debt.

There are a lot of books out there, programs, people wanting you to pay them money to get out of debt.

My personal opinion?  STOP USING THE DEBT METHODS!

Put down the credit cards,...  I know that you really want that new _____, but you should be asking yourself, do I NEED __________?

Debt can be an addiction, and can also be a deep pit once you are in to it,....

If you need help getting out of debt, please ASK!  I would be happy to help anyone build a budget, based on the cash that you ACTUALLY have :)

You CAN get out of debt, people are out there that can help you!

Just wanted to give a Tax Goddess shout out to those who need help!

Shauna~
your Tax Goddess

Financial Planning Importance,...

Today I spoke with one of my financial planner referrals (Michael if you want to email him).  He is such a wealth of knowledge.  We were talking about how scary it is that no one seems to understand that if you don't start saving young, when you want to retire you will be working at Walmart.  No one seems to get it that social security won't be there anymore and that people are left out on their own!

It is so important to save, if even only a dollar a month if that's what you can afford.  If you don't put away for yourself, no one else will!

Remember, that is you own a business, you can even pay your own retirement and take it as a tax deduction!  What else can you say about that then the fact that the government agrees there will not be any social security.

PLEASE teach your children to save and put away into retirement, and please do it for yourself.  You are all you've got in this world! 

(Sorry for the soap box, I've seen too many lives ruined by being forced to work when you were supposed to be playing golf!)

But, to end on a happy note - if you do put away a dollar a day for 10 years when you are 20 years old, and stop at 30, you will be a millionaire by 50!

Tax Scams! What to Watch Out For!

Do you Know???

There are a lot of Tax Scams floating around the internet these days.  Some of them ask you to respond with your bank account information for a refund that the IRS "forgot" to send you, and some are as simple as asking for your telephone # so they can call you and discuss items on your return! 

Some scams deal with you and what you can and can not do on your tax return while others deal with the IRS trying to "find" you!

BE WARY!!!!!

Things to note that are and are not true relating to TAX SCAMS and the IRS!

1)  Email Refunds!

The IRS does NOT communicate via email with taxpayers.  If you EVER get an email from someone claiming to be an IRS agent or a representative for the IRS - DELETE THE EMAIL IMMEDIATELY!!!!  These people are out to get your bank account #'s or Social Security #'s!

2) Bogus Government Grants for Taxpayers

This telemarketing tax scam involves scammers posing as IRS agents calling potential victims and saying that their "good credit and timely filing of tax returns qualifies them for no-obligation government grants."  The pitch is that because the taxpayer is such a good citizen, they are going to receive a $10,000 grant from the government that they don't need to repay.

Naturally, the scammer only needs your bank account info to electronically deposit the money. And of course, the grants are for a limited time only, so the taxpayer must act quickly. Yeah right!  And the government moves that fast, when?  to GIVE us $$$? - HANG UP ON THESE PEOPLE!  Even when you call in to the IRS, they won't let you give private information until you've reached the right department; so they would be asking you for private information why???

There are also "fraud schemes" that the IRS has a top 12 list of here:

IRS "Dirty Dozen"

PLEASE BE CAREFUL when dealing with the IRS and anyone that claims to represent them!  It's a dangerous world out there, your identity and good standing with the IRS should not be taken lightly! 

If you have any questions about an email that you have received, or some advice, please contact your CPA and ask some questions!

§529 Plans

529 Plans - Education & a Deduction!
Did you know???

Arizona enacted a new law that will begin in 2008 that allows contributions to ANY §529 plans (educational savings plans) to be deductible up to $750 / single person or $1,500 for married couples.

The deduction becomes available in 2008 and is supposed to sunset in 2012, however, we all know that once a "good" and helpful law goes into effect, no politician is going to let it lapse under their watch, so SWC expects this deduction to continue!

If you would like to know more about §529 plans you can check out the IRS's information link at: §529 Plan Information