Tax law changes tend to happen at least once a year. An obscure loophole may be closed, or the tax rate on a specific type of profit may be increased or decreased. In either case, it is important to make sure that you have the right income tax advice before dealing with your own taxes. Rather than trying to go it alone, the help of a professional can aid you in making sure that all your forms are filled out correctly and that all the correct deductions have been made. Even with this in mind, though, you may still wonder if tax changes will actually have any bearing on your own situation.
Now, the truth of the matter is that most tax law changes will not actually do much to change the tax returns of most individuals. The bulk of the changes in any given year will only actually cause an effect on the taxes of a select few, but you may never actually know that these changes have gone into effect unless you actually consult with a tax professional. Unfortunately, lack of knowledge about these changes is no excuse when you file, and if you are audited you may actually face rather stiff penalties for failing to adhere to laws that were only recently passed.
There are, of course, many tax law changes that will cause major changes for more tax payers. The IRS is generally quite vocal in announcing these changes, and most are incorporated into even simple tax return programs. However, if you need to feel reassured about what effect these changes will have on your taxes or you simply wish to play it safe, it may be wise to seek out professional income tax advice. It may cost a bit more, but the associated costs are nothing when compared to the fines that may be incurred by those that file incorrectly.
The author has spent a lot of time learning about tax law changes and other related topics. Read more about income tax advice at the author’s website.
Retirement planning is something that people usually do to prepare for old age. But did you know that it’s also something that you can do early on? Early retirement is an option for some but not many fully grasp its concept. Even though it seems impossible, do note that many have made this happen. Expatriates are among those that have retired early and are now enjoying life.
Before you opt for early retirement, think hard and ask yourself – do I really want to retire at an early age? For those of you who find it impossible to achieve given your circumstances in life, don’t push it. Maybe early retirement isn’t for you and you can always retire at an early age anyway, like most people do. But if you feel like it’s right for you and that it’s achievable at the same time, you can consider it as an option.
Once you have set your mind for early retirement, the next thing you have to do is plan for it. Early dream retirement planning starts with managing your finances properly. Try to live a minimalistic life and only buy what you need. Do not indulge too much on things that you want because that would be detrimental to your plans of retiring early. Living a minimalist life doesn’t mean taking your health for granted though. You must try to keep your body fit and healthy at all times to prevent most illnesses associated with poor diet and a sedentary lifestyle. The last thing you want to happen is waste away all the money you saved for retirement on medical care.
If you have kids, instill in them the value of saving money and being independent early on. Along with early retirement, save money for their education as well. If you want to retire early, your kids should also develop a sense of personal responsibility and independence at an early age. Besides, you will be more at peace with yourself if you are able to raise kids that aren’t too dependent on you finance-wise.
Also part of early retirement planning is deciding what you’ll do by the time you retire. Decide whether you’re staying in your home country. Most early retirees, however, leave their country and migrate to countries with lower costs of living and have higher value for the money they saved. There, they can set up their own businesses or simply enjoy the rest of their lives free of burden.
Many IRA account holders who want to increase their retirement funds in a risk free way look into certificate of deposits. Certificate of deposits are one of the best investments for conservative investors. CDs are considered as money in the bank and there is no way that you will lose your investments as long as you wait for the maturity date. Most CDs are insured by FDIC and CDIC so no matter what happens to the financial institution, you can still get your money back. But despite the fact that CDs are safe, you must still be careful in choosing your CD investments. Here are some of the things that you need to consider in choosing your CDs.
The first thing that you need to consider in choosing your CDs is the rate. The IRA CD rates usually depend on the amount that you deposit and the maturity date. The bigger your deposit the higher your CD rate is. If you want to get the best IRA rates, you should consider investing in jumbo CDs. Jumbo CDs usually have the highest interest rates but you should also have to make a large deposit. Usually large companies invest in jumbo CD to make their funds grow without the risk of losing their money. Jumbo CDs usually require a $1 million deposit or more. However, some financial institutions require lower deposits.
Aside from IRA CD rates, you should also ay particular attention to the term of your CDs. Take note that once you have deposited your money, you have to wait for the term to expire before you cash out your funds. If you take out your funds before the term expires, you will be charged with hefty penalties and other fees that may apply. To avoid early withdrawals, it is important to tuck away enough money in the bank for emergency purposes.
Lastly, you should make sure that the financial institution where you plan to purchase your CDs is insured. Some financial institutions are not insured and even though they provide higher IRA CD rates, it is not worth the risk. The best IRA rates do not only offer high returns but are also safe.
Although Akron, Ohio is home to the National Inventors’ Hall of Fame, You do not have to reinvent the wheel when it comes to finding a good tax preparer in Akron.
You can start your search with the local yellow pages. Akron is friendly to small business and entrepreneurs. So, you should find a few local businesses that offer affordable tax preparation services through certified public accountants and enrolled agents. Both CPAs and Agents should be certified by the IRS. Make sure they charge per page or by the hour not a percentage of your return. Unless you want to be like Sinbad and host a reality show about how the IRS took your house, you should ask for references as well. The tax preparer should be able to refer you to at least two people that can vouch for their services.
If you are a small business owner call Mayor Donald Plusquellic’s office of Economic Development. Ask for the financial services department. They should be able to refer you a CPA or tax lawyer who can handle the needs of a small business.
Using private tax preparers in Akron not only supports the local economy it can also put money in your pocket. You want to choose a CPA that pays attention the changing tax laws. They can educate you one on one and prepare you for the next tax season.
If you are a real Akronite, a pioneer at heart, and want e-file you can still enlist the help of an affordable tax preparer. They can guide you through the process and minimize mistakes. University of Akron may offer a listing of recent accounting alumni who are certified and cost efficient.
Whether you choose a CPA, Enrolled Agent or tax lawyer to handle your taxes you should have no problem finding them in Akron, Ohio. A Simple phone call can put you in touch with a tax prepare who is affordable, professional and certified by the IRS.
There are many ways to put back money for retirement and many ways to invest without a saving of money for retirement. Some of the plans that can be used for retirement include Individual Retirement Accounts and company retirement accounts. Discussed below are the advantages and disadvantages to holding an individual retirement account known as a Roth IRA.
A Roth IRA is a retirement account that allows for an individual within a certain income bracket to contribute a certain amount of money each year to a fund. The fund is not tax deferred meaning that the year the money is placed into the account it will be taxed as normal income. As stated above there are Roth income limits and contribution limits that regulate how much a holder can make in order to contribute and how much a person can contribute based upon their income.
For most people the income limits are not a problem depending on your filing status, but basically an individual can not make over $180,000 in one year in order to contribute to a Roth IRA. If you have in the past qualified for contributions and have placed your money into a Roth IRA but the next year you did not qualify for contributions then the money previously contributed will be safe and tax sheltered. One major difference in a Roth IRA in comparison to other retirement accounts is the fact that the money in the fund never has to be withdrawn.
If the owner of the account decides they do not need the money it can be passed to an heir, or if the holder decides to wait longer to withdrawal funds there is no specified age at which funds have to be withdrawn. All other retirement accounts state that by a specified age minimal funds have to be withdrawn or a penalty will be applied to the funds.
At a party last week there started a discussion about the best places to live in the US. It quickly turned to matters of living in a pleasant climate with low cost of living as the group was primarily of the age about to reach retirement.
These friends were vigorously debating the virtues of living in a warm climate mostly to avoid the drudgery are dealing with winter temperatures and precipitation. Places like the Southwest and southern states dominated the conversation throughout.
If you are in the same age category as my friends and myself, there is a good chance you have considered this yourself. Statistics show that as the population ages and baby boomers reach retirement age more and more of them are choosing to move to the southern and southwestern United States.
It’s just too attractive an option when one no longer has the obligation of the job to be drawn to living in a place where the climate is primarily pleasant. Who wants to deal with snow and ice when another sunny day is a possibility?
If the move to a warmer climate is in your future, there are some tips that may help you decide which one is best. First set down in a quiet place with a pad and pen and begin by listing all your priorities. After you have listed them, place them in order of importance. This seems like a rather rudimentary task but one that is vitally important in any decision, especially when you are about to uproot your life and move to another part of the country.
The best places to live for you is not necessarily the best place for someone else but you can determine which place is preferred by using the exercise just described. Of course there are other considerations and you will no doubt want to visit each of the top choices that you come up with but finding your ideal location is not nearly as much of a challenge as it may first appear.