How to Fix a Mistake on Your Tax Return

If you found you made an error on your tax return with the IRS, don’t panic. You can correct your return by filing an amended tax return. Watch the video to learn more.

You can find forms and more information at IRS.gov or click on the link to their article, “Tips on How to Fix Errors Made on Your Tax Return”. 

Don’t forget to consider amending your state income tax return(s) when you make changes to your federal return. Often the changes will affect both.

If you get lost or feel over your head, you know where to find me…

Medicare Premiums Are Insurance Deduction for Self-Employed

Recent News…the IRS Chief Counsel office released their decision to treat Medicare Premiums the same as health insurance premiums under section 162(1). This decision allows you to deduct the Medicare Premium in the same manner as deducting health insurance premiums. Any self-employed individuals who failed to deduct Medicare premiums in 2010 or 2011 may file an amended return to claim a refund, if within the statute of limitations.

Deduction of Medicare Premiums Office Of Chief Counsel Memo 071312

Georgia Sales Tax Holiday

My fellow Georgians will get a sales tax holiday for educational purchases on August 10 at 12:01 AM through August 11 until midnight. The sales tax holiday applies to:

– Clothing purchases with a sales price of $100 or less per item

– A single purchase of $1,000 or less for computers and accessories

– General school supplies $20 or less per item

The exemption does NOT apply to:

Clothing accessories, jewelry, handbags, umbrellas, eyewear, watches, watchbands, cellular devices, furniture, computer related accessories designed for recreational use, or items used in a trade or business, or for resale or rentals.

New Bride? Let’s Talk Taxes

Whether you are a new bride or a bride-to-be, congratulations! If you thought your “To Do” lists would end with “I Do”…think again. You just have a different set of lists for all the things that need to be considered, decided and acted upon. And these lists won’t be nearly as much fun, but if left undone can be costly or very problematic. Here’s a list to get you started:

Address and/or Name Change – Notify

Post Office Employer Insurance
IRS Banks State Department of Revenue
Creditors Investments Professional Advisors
Memberships School Social Security
Driver’s License Subscriptions Professional Credentials
Social Media Family/Friends Software & Online Accounts

Personal Finances and Legal – Update

Bank Account Ownership Credit Cards Beneficiary – Insurance
Real Estate Ownership Motor Vehicles Beneficiary – Retirement Accts
Wills & Estate Planning Credit Bureau Contracts, Deeds, Loans

 Taxes – Planning 

Tax Projection for year of marriage AND for full year following marriage

Update federal & state withholding for year of marriage AND January 1 following your marriage

Depending upon when your marriage occurs, you need to do tax planning for the year of your wedding and the full year following your marriage. Because your marital status changes for tax purposes during the calendar year, you tax situation will be different than if you were married on January 1. Tax planning for both years are important and you shouldn’t assume they will the same. Planning will allow you to make updates to your payroll withholding for both tax periods and not have any surprises when it is time to file your tax returns.

It is great to have tax planning done prior to beginning your wedding plans so you can include tax considerations, as part of your financial plans. I know very few brides-to-be who include this on their wedding plan agenda, so be sure it is done as soon as you return from your honeymoon.

 Enjoy your new life!

 

Happy Independence Day America!

One nation under God,

Indivisible,

With liberty and justice for all

Declare your Financial Independence!

What are you doing to celebrate our Nation’s Independence Day tomorrow? It is the perfect time to begin celebrating your life and become financially independent. Learning is the best first step. Get out there and learn from the pros and educate yourself. If you are assuming you know all about money already, how are you doing with that? Unless you have put yourself into a financially strong position that has your money working for you, you need to re-think your plan.

The key steps to being financially independent are:

  • Learn and Live: It isn’t enough to learn about personal finances and money. You have to live what you learned. Put what you know into action.
  • Earn More: Increase your earnings. This may mean you get a second job, start a business,  or finish getting your degree to land that promotion. Explore your options and make it happen.
  • Reduce & Save: Cut expenses and save, save, save! Replace the spending on the “wants” with savings for the “needs”.
  • Get Rid of Debt: Quit giving your money away to banks and finance companies through interest payments. Keep it, save it and make it work for you!
  • Invest: Make your money work for you. Turn those savings dollars into more dollars with investments.

Read these articles to get you started on learning about your personal finances and declare your independence today!

7 Ways to Declare Financial Independence

How to Become Financially Independent

How to Be Financially Independent: 4 Free Tips

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