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Tax time is a good time to review you 529 college savings plans to get the maximum benefit from the money that you contribute.  Even though we are now in 2014, some states will allow you to contribute money during the first quarter of 2014 and take a 2013 state tax deduction on those funds.  However, contributing to the plans is only part of the overall strategy of using 529 plans.  Stretching out tax-deferrals and sidestepping estate tax levies are other areas that you need to investigate to … [Read more...]

It may not be the most feared but according to a Credit.com article, it can take you from overjoyed refund to tearful amount owed if you received it this year.  IRS 1099-C is the form used by creditors when they forgive debts of $600 or more.  The creditor is required to file a 1099-C with the IRS and the taxpayer is required to report the amount as income on their tax returns (with very few exceptions).  Instead of panicking, you should first determine if you qualify for an exemption. For … [Read more...]

For those of us who will receive a huge tax refund, we are overjoyed to see tax time roll around.  For the rest of us, we hate it!  However, if you do owe taxes this year, ABC News published a slideshow about stupid tax mistakes people make that might help you avoid making tax time even more costly. For example, people who owe taxes and avoid them by not filing a tax return will get hit with double penalties - - one for owing and not paying the tax but also a penalty for not filing a tax return … [Read more...]

It is probably not surprising to many that the West Virginia company responsible for the chemical spill that caused widespread water contamination filed for protection under Chapter 11 of the Bankruptcy Code last week.  Bankruptcy Court documents revealed that the company is estimated to be worth between $1 million and $10 million but has liabilities within the same range.  More details will follow with the filing of more complete bankruptcy forms.  The chemical spill affected 300,000 people and … [Read more...]

None of us like to deal with insurance companies but especially when they give us grief over a valid insurance claim. Typically, we have already had to deal with whatever circumstance caused the need to file a claim (i.e. car accident, problems with our home, etc.) and dealing with a claims adjuster and the insurance paperwork is just too much to handle.  However, there are things you can do to help ease the process like knowing exactly what is covered rather than accepting what the insurance … [Read more...]

The Consumer Financial Protection Bureau aims to use new rules to take the mortgage loan process back in time prior to the housing crisis.  With new rules designed to simplify the mortgage process and make it more transparent, they hope to create a safer mortgage market to prevent mistakes that lead to the housing and mortgage crisis.  CFPB’s director said that these rules would use “basic building blocks” to return to responsible lending and customer service. To read more about the new … [Read more...]

Filing a bankruptcy case requires a lot of information; however, your bankruptcy attorney will help you by walking you through the process and advising you what information you need to provide to the court.  During your initial bankruptcy consultation, the attorney will need key information such as your current income, household expenses and other information relative to your personal finances to give you the best advice regarding a bankruptcy case.  While many law firms have a customized intake … [Read more...]

According to the Internal Revenue Service, almost one-fifth of taxpayers violate the tax code in some way each year.  Individual taxpayers rather than corporations commit the majority of these violations.  However, unless there are signs of fraud, the IRS will usually assume that a mistake has been made through either negligence or careless error.  When tax auditors find suspicious activity, the IRS Criminal Investigation section will launch an investigation to determine if the acts were tax … [Read more...]

Many people have turned to online sales as a way to earn extra income or as a way to support their family in this depressed economy.  Unfortunately, the Internal Revenue Service expects you to report your online sales as income on your federal tax return so that you can be taxed on this income.  Even items you make as a hobby then sell them may be taxed.  There are a few exceptions but not very many.  One exception would be if you sold a used, personal item through an online website (just as if … [Read more...]

As Detroit’s bankruptcy continues, many in the art community are worried that the bankruptcy trustee will sell pieces from the city’s art collection to help pay its staggering debt.  The Ford Foundation, Kresge Foundation and the John S. and James L. Knight Foundation have pledged $330 million toward a deal that would help save priceless works of art at the Detroit Institute of Arts from being sold at a bankruptcy auction.  The museum is working diligently with groups such as this to raise … [Read more...]