Five Smart Ways to Spend Your Tax Refund
The Internal Revenue Service (IRS) estimates that the average refund for this year will be close to $2,000. This has many Americans across the country struggling with the decision of whether to buy a vacation package to the Caribbean or to utilize the extra income towards something more useful. If you are one of the millions of people caught in the middle of such a debate, CreditGUARD of America has five smart ways on how to put that income tax return to good use.Pay Off High Interest Credit Card DebtIn 2004, an average household owed close to $10,000 in credit card debt, yielding interest charges of more than $1,000 per year. For instance, if you decided to pay $400 a month on such a balance with an interest rate of 16.5 percent, it would take you more than two and a half years to pay off the debt completely. This also means that you will have to pay more than $2,100 in interest charges alone.
When paying off your credit cards, keep in mind to pay off those cards with the highest interest rates first. This will help you keep your interest charges to a minimum.
Invest in Your House Before spending your tax return impulsively, consider spending a portion of that money towards the largest investment that you probably own, your house. A complete termite inspection, a new coat of paint, new carpeting or remodeling your old kitchen can not only improve the quality of your life, it can also increase the overall value of your home.Create an Emergency AccountAccording to credit experts, consumers should initiate an emergency fund and put away 3 to 6 months worth of living expenses. This type of fund can relieve a great amount of stress and anguish if you suddenly lose your income.
You can easily create an emergency account by utilizing your upcoming income tax return. When selecting an investment, make sure you select an investment that is fairly liquid, such as Certificate of Deposits (CD) or a money market account where your savings are easily accessible.Save for RetirementAccording to the 2004 Retirement Confidence Survey conducted by the American Savings Education Council (ASEC), only 6 out 10 workers are currently saving for retirement. If you have not started saving for your future yet, CreditGUARD of America recommends that you initiate a savings plan with your income tax return. Contributing a percentage of your monthly salary to a 401(k) plan or initiating an Individual Retirement Account (IRA) can provide the much needed monthly income when you retire. Open a College Savings PlanCollege Education is getting more expensive by the year.
Nowadays, a typical four-year college education can cost upwards of $100,000. According to savings experts, the average cost of tuition and fees rose to 9.6 percent at four-year public schools and 5.8 percent at private schools in the previous academic year.
State governed 529 college savings plans are the most effective tools when saving for college. Under 529 rules and guidelines, parents can contribute up to $250,000 per beneficiary. The 529 college savings plan works much like a Roth IRA, where withdrawals are completely tax-free when used for higher education purposes.
CreditGUARD of America is a non-profit credit counseling organization that assists consumers through credit counseling and financial education. Please visit our web site at www.creditguard.org or call 1-800-867-0406 for a free consultation with a certified credit counselor..
What is a Reverse Mortgage?
Simply stated, a reverse mortgage is a loan that enables homeowners (age 62 and older) to convert part of the equity in their home into a tax-free income without having to sell the home, give up the title, or take on a new monthly mortgage payment.
More and more homeowners are using this to supplement their retirement income, pay for health care, modify their home, or just get some cash for emergencies.
Since this is a new product, some people have misconceptions of what a reverse mortgage is.
The bank doesn't give you money and take your house.
Let's look at some of the most common questions.Are reverse mortgages for desperate people?
No.
It is an excellent financial planning tool used from people of all walks of life.
How do I qualify?
You must be 62 or if both parties are on the mortgage, then you both must be at least 62.
And, you must have equity in your home.What if I still owe on my home?
What is a Reverse Mortgage? 
Tax help > What is a Reverse Mortgage?
New Mutual Fund Guide Focuses on Novice Investors
San Diego, CA (ContentDesk) February 27, 2006 -- In eight chapters, his Beginner's Guide to Top Low Cost Common Stock Mutual Funds (ISBN: 1-4116 6908-8) explains to first time investors how funds work, their tax aspects, guidelines about when to sell, and why a buy-and-hold strategy beats market timing.
In addition, he details for purchase 13 top low cost funds, including one that over three decades turned $10,000 into
$395,000.
"Making money in the stock market is a no brainer," he says, "if you just let our economy, a tremendous money-making machine, work for you.
And you can make it work for you by having patience and buying and holding for the long term proven quality funds." About the AuthorSteve Haberman practices what he preaches.
For over 30 years, through good and bad times, he's invested in no load funds.
Through his common sense approach, he's profited greatly and been able to travel extensively throughout Europe.
Tax help > New Mutual Fund Guide Focuses on Novice Investors
Self Employed Mortgage Loans - A Survival Guide
When you're self employed you have numerous advantages. As you are a free agent, you will write off every deduction you can on your tax return. You acquire the potential to earn extra income much more so than someone who is employed by someone else. The best part is that you are the gaffer, the boss! On rare occasions, being freelance has some drawbacks. One is when you go to get finance for a property or a large purchase.
However, here are some items to know that could help you prepare for the mortgage loan process. A self-employed mortgage loan survival guide, if you will.While confirming your income - the average lender will need to be made aware of at least 2 years of self employment history, occasionally they will request 3 years. They will ask to see this history verified in tax returns, generally. Occasionally the lenders may figure your income as being the average income you claimed on your income taxes as profits, not your gross business income. Another time the lender...
Self Employed Mortgage Loans - A Survival Guide
Tax help > Self Employed Mortgage Loans - A Survival Guide
YEAR END TAX PLANNING AND PREPARATION FOR INDIVIDUALS ? Tax Tips for 2004 including new tax relief due to the Working Families Tax Relief Act of 2004
Now is the best time to start thinking about your year end tax planning. These tax strategies can be put into effect by the end of the year and some as late as when the tax return is due. Planning now will save you money and reduce your tax liability not only with your IRS taxes but also with your state taxes. Here are tax tips that will help you accomplish your goal. MINIMIZE YOUR CAPITAL GAINSReview your capital gains and losses for the year including taxable investment accounts and taxable real estate sales.
If you have net capital gains, you may want to sell some of your investments that have a loss to offset the gain. You should also check your 2003 tax return for any loss carry forwards to 2004.NEW SALES TAX DEDUCTIONNew in 2004 taxpayers who itemize deductions can now choose between claiming the state income tax or sales tax as a deduction. The IRS will provide optional tables for use in determining this sales tax deduction if tax payers don't keep their receipts throughout...
YEAR END TAX PLANNING AND PREPARATION FOR INDIVIDUALS ? Tax Tips for 2004 including new tax relief due to the Working Families Tax Relief Act of 2004
Tax help > YEAR END TAX PLANNING AND PREPARATION FOR INDIVIDUALS ? Tax Tips for 2004 including new tax relief due to the Working Families Tax Relief Act of 2004
TaxACT?, America?s #1 Value Leader in Tax Preparation Software Products and Services, Soothes the Sting of Preparing Tax Returns
2nd Story Software?, Inc., developers of America's most trusted value-priced tax preparation software, announces the release of TaxACT? Standard and Deluxe Editions for the 2004 tax season.Simplify and Streamline!
TaxACT Deluxe Gets Recognized and Offers Improved Navigation, Expanded Advice and Additional Calculators Denoted recently by PC Magazine as having a "sleek and fast design", TaxACT 2004 Editions are designated as being the Editor's preferred choice for "finance-savvy" taxpayers.
TaxACT's 2004 Deluxe Edition continues to simplify tax preparation and provide its users with an exceptional experience by improving its link integration to expert tax advice and help features.
At the same time, TaxACT has expanded the number of its interactive calculators within the Life Events QnA process, which are provided in partnership with J.K Lasser's? Your Income Tax 2005 by John Wiley & Sons, Inc. ? America's all-time best-selling tax guide.
More than ever,...
Tax help > TaxACT?, America?s #1 Value Leader in Tax Preparation Software Products and Services, Soothes the Sting of Preparing Tax Returns