Will I Get in Trouble for not Filing my Taxes?

Have you avoided filing your taxes? Maybe you do not have enough information to complete your tax return or you do not have sufficient money to pay your liability. Whatever your situation may be, not filing your taxes has serious and severe consequences. When you know a myriad of stories about people avoiding tax, you do not have to do the same because failing to file a tax return is more expensive.

Not filing your tax can lead to criminal penalties such as fines, civil penalties, and even imprisonment. When you cannot afford to experience these worse situations, it is better to follow the rules and regulations in your country. You will see the difference between failing to file your tax return and paying your taxes.

What will happen when you fail to file?

When you fail to file a tax return, the Internal Revenue Service (IRS) may file a substitute return. Though your accountant would include standard deduction in your return, IRS will never include them. The institution will not be looking to help save your money.

However, substitute return has only one exemption. Whether you are single or married, you need to file a separate tax return. So, you can have less tax liability when you perform your obligation as a tax payer.

What to do when you can’t pay your tax responsibility in full?

As a person who pays taxes, you need to do your obligation in advance to avoid complicated penalties and high amount of interests. When you cannot pay your tax liability in full, it is necessary to visit the IRS near you to explain your case. Depending on the situation, IRS may provide the following:

  • Installment Agreement – In this resolution, you may be obliged to make monthly payments. Also, it allows you to pay in full in more manageable and smaller amounts. So, if you cannot file a tax return, you can take advantage of the installment agreement provided by the IRS.
  • Temporary Delay – Aside from installment agreement, IRS may temporarily delay the collection of your taxes. However, it is significant to prove that you do not have the ability to pay your tax debt. During the process, IRS looks over your capability to pay then take an action to protect the interest of the government.
  • Offer in Compromise – IRS will settle your unpaid taxes less than the full amount of your balance. But, you have to pass the requirements in order to get qualified. Offer in Compromise is applicable to all interests, penalties, and taxes. When filing for the resolution, you will be charged a certain amount.

When you receive an incorrect bill, call or visit the nearest IRS. Make sure that you keep a copy of records, canceled checks, and tax returns. As a result, you can help IRS understand and identify their mistakes.

The bottom line is, failing to pay taxes can result in expensive penalties and imprisonment. For sure, you cannot afford to experience those complex dilemmas. Whether you are unable to pay your taxes or have a hectic schedule to perform your obligation, you should not forget filing your tax return.

Will I Get More Money Back in My Tax Return?

You may be wondering if you will get more money back in your tax return now that you are making more money or will you make less. Well, high income requires a high amount of taxes. When you make more money, you have more tax debt than people with enough income.

IRS know that you have the ability to pay higher taxes. If you’re asking whether you can get more money back in your tax return when you make more money or not, you can get more tax refund. However, you should come up with good deductions so that you can get what you want.

When you have less income, you can experience low tax refund. But, the good thing about having enough income is that you do not have a high tax liability. You will never feel stressed when it is about time to file your tax return. You will never encounter various problems along the way. So, you may have a hassle free daily living.

If you want to get more money back in your tax return, below are some simple and useful tips you can follow.

  • Include Dependents – When you have been supporting a relative, you can get a dependent exemption for about $4,000. Also, this is applied when a friend counts on you. However, the amount of tax exemption depends on where you reside. Apart from that, you can get more tax refund you truly deserve.
  • Take Above-the-line Deductions into Account – These deductions allow you to eliminate your taxable income. If you have paid school supplies, alimony, student loan interest and self-employment tax, you can use them to get more money back in your tax return. Like having dependents, you can also reduce your taxes.
  • Claim the EITC – Do you have a low or moderate income? If so, you can qualify for the Earned Income Tax Credit (EITC). It can reduce your tax debt, which can give you the opportunity to qualify for a tax refund. In addition to the requirements, you should have a Social Security Number and are a U.S. citizen. You must have an income and are not dependent on anyone as well.
  • Choose Relevant Filing Status – There are five choices when filing status such as single, head of household, married filing separately, and married filing jointly. During the process, you have to be careful in choosing your filing status as it can leverage your chance to get more money back in your taxes. More particularly, it can ascertain your standard deduction, filing requirements, credits, tax liability as well as a tax refund.
  • Maximize your Tax Contributions – As early as possible, you should file for a traditional IRA so that you can receive a larger refund of taxes in the near future. In other words, you need to maximize your IRS contributions to achieving excellent taxable income and awesome tax refund.

Do you have a hard time to boost tax reimbursement? Worry no more as there are outstanding solutions that you can ever have such as including dependents and maximizing your tax contributions. Thus, making more money guarantees getting more money back in your tax return.

Daily Financial Advice Mallard 2-22-2014

Daily Finance Advice

Daily Financial Advice Mallard 2-22-2014

If you can’t afford a cab ride home you can’t afford to go out drinking.

It being Saturday and all be wise with your money and with your safety. If you ever drink please make sure not to drive. As well if you are worried about not being able to afford a cab after drinking then you shouldn’t go out drinking in the first place. Take a weekend off from partying. Your wallet will thank you and so will your head.

Sponsored Video: PA Consulting

PA Consulting Group provides a whole slew of consulting services but in their latest video they show case a new service they offer to clients. A type of social protection and monitoring service. In this comical video we are actually shown a valuable lesson about who to trust with financial information and how that information gets leaked. In the case of the video it is the CEO’s own personal secretary who is tweeting out the companies financial results to a rival firm. This all wraps up under corporate espionage and corporate leaks. And PA Consulting can help make sure neither of those are happening at their firm.


The video ends with a scary big number from Interpol which says “One trillion dollars of Intellectual property has been stolen via corporate espionage from businesses worldwide.” In this increasingly connected and social world we live in we are sure that this number will only increase.

IF you are worried that your company may be the victim of corporate espinaoge or at risk to hit feel free to check out PA Consulting!

This post is sponsored by PA Consulting

Five Smart Financial Moves if You’re Starting a New Job

Making the switch to the new job is often an exciting experience,one where the new challenge and and new opportunities help make one look forward to reporting to work. But before everything is done and dusted, there are a number of steps or precautions that you need to ensure are in place before you start off on a new job.

Financial Moves Before a New Job

Taxes

You need to make sure that your job takes into consideration the tax requirements of whichever area you are working in, so that you do not get a rude awakening when calculating your net income. This is important because apart from federal taxes, taxes may vary from state to state in the United States or if you are working abroad. The methods that the firm uses when filing returns is also important, so that your federal mandatory earnings may not be misplaced.

Benefits

You need to take into account what benefits accrue to you, and how these affect your net income and your standard of living. These of course should include health insurance, housing and transportation allowances, meals as well as allowances that ease the execution of your job, like travel allowances.

Pension Fund Schemes

You should always query what schemes are in place in terms of pension or saving schemes, as these vary from work place and are critical to securing your future livelihood as well as your future finances. Sometimes firms develop their own schemes which have slightly higher returns and encourage their employees to invest in these schemes and it is aspects like these that one should look out for. Firms also work closely with different schemes that offer them preferential rates. You may want to examine these options as well.

Direct Personal Savings

Despite all official saving schemes that one has in place, one would wisely have a way of putting aside a nest-egg of sorts. This may be in the forms of direct remissions from your salary to that particular savings account that you put aside for a rainy day. When you are starting on that new job, try and ensure that this practice, if it has been in place, is maintained, or if it hasn’t, then now would be a good time to start.

Credit Management

In a society or economy that thrives on deferred payments, managing your credit is an important aspect of daily financial management. When you start on a new job, ensure that pending credit payments can be servicing in a planned and systemic manner, one that helps keep interest payments from accumulating as well as ensuring your credit rating remains good.

Several other aspects of financial management come into play when starting a new job but these five should at least get you on the way to making the transition to financial security significantly easier.

Five Benefits of a Roth IRA

Various benefits exist for persons saving for retirement using traditional IRA to convert their traditional Individual Retirement Arrangement to Roth IRA. From the year 2010, restrictions for converting a traditional IRA to a Roth IRA were eliminated. There are many compelling benefits of a Roth IRA the biggest being the tax considerations.

Benefits of a Roth IRA

Tax Free withdrawals

All contributions to a Roth IRA can be withdrawn tax free at any time based on meeting specific criteria. This is different from traditional IRA where withdrawals are treated as ordinary income and are taxed.

Another advantage of the Roth IRA is that the contributions to an IRA scheme can be done even when the owner also participates in another qualified retirement scheme such as the 401(k). The contributions are usually acceptable in traditional IRA but are not excused from taxation.

Roth IRA distributions normally don’t increase the Adjusted Gross Income of retiree meaning that these distributions are free from income tax deductions while at the same time increasing the marginal income tax bracket of the individual. Distributions from traditional IRA are considered as income and so attract tax and can cause the gross income to be taxed in a higher marginal tax bracket.

When the traditional IRA is converted to Roth IRA, the available money is available for withdrawal up to the total amount converted without incurring a penalty. This is possible as long as the five years seasoning period has passed for the converted funds.

Not only can the Roth IRA be transferred on to the heirs, but additionally, if the Roth IRA owner passes on, the spouse becomes the sole beneficiary of both the Roth IRA, even though the spouse owns a separate Roth IRA. The spouse is also allowed to convert the two Roth IRAs with no penalty.

No Tax Rate Hikes

Many people are worried that the financial woes in the United States can result in forced raise taxes. The Roth IRA allows retirees to enjoy prevailing tax rates at the time of the application of the Roth IRA. If taxes are raised in the future, the Roth IRA would not be affected as only the initial investment will be taxed.

Finally, for estates that are large enough to be considered for estate taxes, a Roth IRA can reduce the estate taxes because the tax dollars have been subtracted. This is different for a traditional IRA that is valued at the pre-tax level for estate tax.

Investing In Penny Stocks

Penny stocks, also known as cent stocks in some countries are stocks of small public companies that trade at low prices per share. These are usually below $5 per share.

investing in penny stocks

Investing in penny stocks is easy, as long as the investor understands what they are doing and the fundamental market drivers to look out for.

Getting the Right Stock Broker

Before beginning, it is important to choose the right stock broker. Investors choose stock brokers who charge low commissions, provide platforms that are easy to use and provide other investment options such as stocks, bonds and mutual funds. Opening an account with a stock broker includes depositing money into an account that allows you to start trading. The platform an investor chooses should also provide financial news and information in real time.

Use a Virtual Money Account

Based on the broker an investor chooses, access to an online virtual account can provide the needed training ground before investing in real money. This allows investors to understand how the platform works and how to trade in the penny stocks market. Only after trading in a virtual environment should investors put in real money? Investors should take their time to get a feel of the market conditions and learn the needed disciplines of money management and risk mitigation.

Start Small

The trick behind trading penny stocks in to understand how to manage and grow a small portfolio. If a trade can successfully grow their account and to their principal. Additionally, newbies are usually advised to only trade money that they are comfortable losing in case anything goes wrong with their trading strategy. In case you lose money on your first trades, it is not advisable to keep increasing money into your account. It may be advisable to go back to the virtual account until you are confident to trade profitable again.

Avoid emotional trading

Investors new to trading penny stocks should use the tips that they get from their analysts to dictate the way they trade rather than the emotions of greed and fear. Successful investors get past these emotions to make successful trading decisions.

Reinvest in Penny Stocks

To grow your portfolio and make even bigger margins, investors should put off taking out their profits and rather invest into the program. Having additional funds allows investors to diversify into new stocks over time.

Where to Trade Stocks Online

Before jumping into stocks, it is important to figure out which platform offers the best solution for trading stocks online. There are some key things to consider.

trade stocks online

Traders new to stock trading online can be exciting, and can free the savvy trader to financial independence.

Commissions

Profitable trades get charged a certain margin by the broker as do the losses. This margin should be as slim as possible. Choose a platform that charges low commissions. As the trading volume increases, the cost of trading also increases and the best broker should lower their margins even further.

Financial Market News

The best online brokers in the business provide streaming news and real time price updates for stocks and options. As long as customers get the most up-to-date information on their platform, they can easily enter into profitable trades. Timely information can mean profitable trades consistently and platforms that offer information regularly should be preferred.

Stock Portfolio

It is important to have access to a large number of stocks and trading instruments so that you never miss the action in any part of the market. When choosing an online stock broking platform, check the number of financial instruments in terms of stocks and options that are available on the platform and other competing platforms. Investors can choose platforms based on the various online reviews available.

Various Accounts Available

Investors should check if the broker provides the type of accounts that you need in case you want specific accounts such as IRA. Some online stock brokers do not offer such options and it would be important to ask or check online before making a commitment.

Payment Method

Finally it is important to check whether you can deposit funds into your account using a visa check card or other card that you use.

Here are the top 5 trading platforms for 2013:

TD Ameritrade

Ranked the top stock trading platform online, the platform offers among other advantages, and easy to use platform loaded with great tools.

E*TRADE

E*TRADE is easy to use, offers various tools on its platform and is available in a mobile version. It also offers great investment advice.

TradeKing

Apart from the attractive low trading commissions, TradeKing is also a darling for the thousands of investors on it who provide trade ideas and research.

OptionsHouse

Options House also has low trade commissions from as low as $3.95 flat fees. Additionally traders get 150 free trades for every new account.

Seven Great Tips for Renting a Car

When renting a car there are a little of secret tips that can help you save money, cash, and time. Here are six of the best and in MEME form to help you remember them!

1. When renting a car online reserve a compact at the last minute. They likely won’t have a compact handy and will give you a free upgrade.

renting car

2. Buy the insurance! Even if the car is totaled in an accident that’s your fault you won’t see a single charge.

buy insurance on rentals

3. Rent from locations at car dealerships. They close early, meaning you can drop it off overnight and not get charged extra.

rental cars

4. Ignore the no smoking stickers. Every car gets hit with an industrial deodorizer after every ride.

buy car insurance on rentals

5. Do not let someone else drive. If they are pulled over and not on the contract. The car will be taken and you will be heavily fined.

buy insurance on rentals

6. If you have a dog put a blanket over the seats.Dog hair is the only thing we charge for.

buy insurance on rentals

7. If you don’t like the car they give you, complain about the brakes, they legally have to give you another.

buy insurance on rentals

Saving Money with Coupons

You can cut down the price of your grocery bills by means of clipping some coupons and saving them over time with persistence and control. Control how you spend and reward yourself with different things once in a while and search out coupons that will allow you to purchase some luxury items once and a while.

saving money with coupons

Here are steps on how you can start saving money with coupons:

Organize your coupons by means of making a comprehensible system, a binder can help out with filing coupons. Keep it near you and always remember it as you go shopping. Keeping it in your car will make sure it is close by.

Search for coupons in magazines, food packages, newspapers, coupon mailers, grocery store receipts and of course on the internet
By cutting out coupons for the products that you may purchase or try you can always be prepared. Do not be lured by the ‘irresistible’ savings that coupons show you. Buy only the things you need, not the things you want.

Know the prices of the products that you want to buy. Usually, products with brand names cost higher than generic products.
Hidden costs matter.

Find out if your favorite grocery store matches the coupon of the manufacturer so that your savings can be doubled.

COUPONS FOR ONLINE SHOPPERS

Almost everyone in the world uses the internet for shopping. Shopping online  is easier because of the power of comparison shopping. But how are these coupons helpful for online shoppers? Do they really help? What are the perks of using these coupons?

BIG, BIG DISCOUNTS

Consumers, presently, love to shop online. A person can now enjoy shopping more because a coupon offers more that 40% discount on a purchase of an item. That means, if you are a shopper and you have a discount coupon, you only need to pay less than 50% from the price of a product. Finding these coupons is also easy online and you can sign up for online alerts that can deliver these right to your inbox.

COUPONS WILL NOT PUT YOU IN DEBT

Even if you are shopping online and paying via credit card, you will not be buried with huge amounts of debts. Coupons actually help people lessen the debts they will incur when they use credit cards for shopping because the product that is going to be bought has a much lower price, therefore less interest is charged.

WHY ARE COUPONS THE BEST FOR ONLINE SHOPPING?

GAS SAVER

When you shop online, you do not need to get out of your house and drive yourself to an online store just to buy one thing. Meaning, your gas is saved and your energy is saved, too.

SHOP ANYTIME AND ANYWHERE

Another perk of shopping using coupons is you can shop regardless of where you are. You can shop while you are at the spa, you can shop while you are at home, from smartphones you can simply shop anywhere.

So there is no need for you to hurry from work to reach a store as it is closing, or planning your evening around shopping.

If in case you want to go shopping but you are too lazy to go out, you can always go online and shop using your coupon codes, just the same as you would use printed coupons in a store. This is ideal for people who are very busy that they do not have time to get out to do their shopping, or search through a few retailers to comparison shop.