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Ten Common Mistakes Tax Filers Make

Don’t you hate that thought of getting your taxes done only to realize later that you make a common mistake that could cost you time or money? The tax code seems to be getting more and more complicated every year (500 changes alone in 2008), and we all seem to be strapped for time these days. Here are 10 mistakes we see taxpayers make all the time which could put a few dollars in your pocket this tax season. 1) If you are single and are caring for an elderly parent, you should investigate seeing if you qualify for ‘head of household’ for your filing status. As a general rule of thumb, you should be paying for 50% or more of the elderly parent’s expenses. 2) You should make sure you have kept track of your charitable mileage that you drove during the year. Eligible miles will have a .14 cents on the mile write off on your tax return ...

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Should You Use A Debt Relief Program

Over the past several months, we have received request from many of our subscribers to get some information about the various debt relief programs that advertise on television and the internet. Since some of these programs can be scams and some are legitimate, it is important you take the appropriate steps to find the right program just for you. Here are some thoughts on choosing a program that may be right for you. 1) What solutions does the company provide? Different companies or non-profits are skilled a various debt relief/settlement programs. You need to consider the size of debt you are trying to negotiate down and what type of debt you are looking to reduce overall.  Recognize that many of the credit card companies won’t even talk with you while you are still on the preverbal stationary bicycle still making minimum monthly payments.  Some companies do debt consolidation, some debt negotiation/settlement, and some will deal with IRS debt as well. ...

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Capital Gains On Your Primary Residence?

If you sell your main home or primary residence, up to $250,000 may be excluded from your income.  The amount jumps up to$500,000 for married couples that sell their primary residence. In order to meet the primary residence exclusion requirement you must meet the following requirements: You owned the residence for any two of the last five years. You occupied your residence for any two of the last five years. You haven’t used the capital gains exclusion within the last two years. If you are married you need to meet the following requirements: You are married and file a joint return for the year. Either you or your spouse has owned the residence for at least two out of the last five years. Both you and your spouse have used the home as your principal residence for two out of the last five years. Neither you nor your spouse has used the tax exclusion within the last two years. The required 2 years ...

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Top 10 Questions to ask your Accountant

How long have you been in practice?  Are you a CPA? Will you or someone else in your firm be working on my situation? Do you have a specialty? Are you licensed to offer any financial products? Do you have any formal or informal relationships with other professionals or institutions that I should be aware of? Do you offer advice on tax strategy? How many of your clients have been audited by the IRS?  Results? How many clients do you serve?  Your firm? Do you work with any small business owners? Can you provide me some referrals of satisfied clients? Kile Lewis, CRPC® Co-CEO and Founder oXYGen Financial, Inc. Request a FREE consultation: www.oxygenfinancial.net Related Articles – Top 10 Ways To Tighten Up Expenses For Business Owners, Top 5 Insurance Policies To Avoid , TOP 10 Atlanta LATE NIGHT Restaurants, The Top 10 Most Overlooked Tax Deductions , Top 5 Ways to Help Someone Who Is Unemployed oXYGen Financial, Inc. ...

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2010 Mileage Rates!

As each year changes, so do the deductions we can take every year as it relates to mileage with business, charitable, and medical mileage. I often find that people I meet don’t keep the best track of these records, and every dollar you save can help you increase your bottom line. The Internal Revenue Service issued the 2010 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes. Beginning on January 1st of this year, the standard mileage rates for the use of a car (vans, pickups, or trucks) will be: 50 cents per mile for business miles driven 16.5 cents per mile for medical or moving purposes 14 cents per mile driven in service of charitable organizations The new rates for business, medical and moving purposes are slightly lower than last year’s. The mileage rates reflect generally lower transportation costs compared to a year ago. The standard mileage ...

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Save More For Retirement? – Think Again – 401(k) Limits

In October, the IRS will go about announcing how much you can put in your 401(k) for 2010. For 2009, the maximum contribution is $16,500 for people under 50 years old, and $22,000 for people who are over 50 years old. Generally, the calculation is based upon the 3rd quarter inflation rate vs. the inflation rate one year ago. ...

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