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January 15, 2008-- Tax Tips: Get Organized!
Welcome to Tax Season: 2008!
It’s your ‘favorite’ time of the year when you get all stressed-out about completing this year's taxes on time!! My advice is to start now to gather all your key tax documents as soon as they arrive in the mail. Put them in a folder so you’ll have everything you need to prepare your taxes in one place. If you choose to have a professional prepare your taxes (which I think is your best bet…) being organized will make it easier on both of you.
Companies are required to issue your tax documents by January 31, so you should have them soon. Meanwhile, feel free to contact me if you have any tax questions or if you would like to schedule an appointment for me to prepare your taxes.
My goal is to make your tax season less stressful so you can spend your time and energy on what’s really important in your life!
December 21, 2007-- Tax Planning Tip: Use Tax
What's a "Use Tax" you ask??? Well, anytime you buy anything on the web or mail order, you technically owe the State of Michigan 6% sales tax, which they call "Use Tax" for these types of purchases. There's even a line on the State of Michigan 1040 Tax Return where you're supposed to estimate how much you spent during the year and calculate the tax that's due. The good news is that many major companies that have a presence in the State (i.e. Land's End, Eddie Bauer, Circuit City, etc) automatically charge you sales tax when you place your online or catalog order so you don't even need to worry about them. But, Amazon, Ebay and most smaller companies either don't ask, or they leave it up to you to voluntarily add the tax! Who's going to bother with that?!?!
I'm not sure if the State even has a way to know if you're 'naughty or nice' when it comes to paying your Use Tax, but that's probably something best left to our conscience. However, the estimate I saw was that $380 Million in Michigan Use Taxes will be owed but unpaid in 2009. I think the State will be putting more effort into getting their cash in the future.
So now that you know about 'Use Tax', I'll let you get back to your last minute Christmas shopping.
P.S> Watch for my next email in January which will contain exciting news about new financial products and services that I'll be able to offer to help you achieve your financial goals!!
I hope that this holiday season brings you peace, happiness and great opportunities in 2008.
December 11, 2007-- Tax Planning Tip: 'Tis the Season
'Tis the season to be jolly, but it's also time to think about helping others. The end of the year is the perfect time to put those thoughts into action and do well (for you) at the same time you are doing good helping someone else. There are so many worthy charities that need our help and the IRS is happy to let you take a itemized deduction as long as you follow the specific IRS rules. The main rule is: you must have a receipt from all charitable contributions. For example, it's better for your taxes if you send a check to Salvation Army instead of putting $20 cash into the bell-ringer's red bucket.
It's also a great time to clean out your closet and donate the clothes to Purple Heart, Vietnam Vets, etc. They will leave you a receipt, but it's up to you to estimate the value for the detailed list of items you donate. If you have any thoughts about donating a car, you need to read the latest rules so you'll know how the value is determined and how much of a tax deduction you'll likely get.
Even if you don't itemize, the State of Michigan will give you a 50% tax credit for contributions to public activities, like: libraries, art institutes, universities, public radio, public TV, homeless shelters, food banks and some community foundations.
When you're out at the crowded malls, take a minute and think about the people in Metro Detroit that are less fortunate than we are. Just pick a organization that provides a service you believe in and give them your support. If you want to feed the hungry, how about Gleaners Food Bank? If you see the need for affordable housing: support Habitat for Humanity. If you're passionate about animals: support Michigan Humane Society. I could go on and on, but I'll leave that up to you.
I hope you all enjoy the holiday season. Think about making a contribution and you'll get that special feeling that it really is better to give than to receive!