Year End Tax Planning Stratigies

Some Year-End Tax Planning Strategies
The 2009 tax year is drawing to a close. The sooner you address year-end tax planning issues, the better. Whether you are approaching year-end planning from an individual or business perspective, you can take action to benefit from favorable tax law provisions.

Careful planning can reduce your tax liability. The lower your liablity the more money you have available to invest, or save for future goals. Set goals, stay on track and make sound financial decisions.

IRA Charitable Donation Rule for 2009
Contributing to charity is a way to benefit others and realize valuable tax benefits at the same time. If you are an older IRA owner, you may be eligible for a special charitable contribution rule that extends through the end of 2009. Under federal tax law, an IRA owner age 70½ or older can directly transfer tax free up to $100,000 from the IRA to an eligible charitable organization in 2009. This planning option is eligible to IRA owners regardless of whether they itemize their deductions. To qualify, the funds must be contributed directly by the IRA trustee to the eligible charity. The transferred amounts are not taxable to the IRA owner and no deduction is available for the amount given to charity. We can help you determine if this strategy would be beneficial to you in your planning.

IRA Contributions
The deadline for contributions to a traditional IRA for the year is the due date of your return, not including any extensions of time to file. Amounts you withdraw from your IRA are fully or partially taxable in the year you withdraw them. If you made only deductible contributions, withdrawals are fully taxable. Use Form 8606 to figure the taxable portion of withdrawals.

Withdrawals made prior to age 59 1/2 may be subject to a 10% additional tax. You also may owe an excise tax if you do not begin to withdraw minimum distributions by April 1st of the year after you reach age 70 1/2. These additional taxes are figured and reported on Form 5329 (PDF). Refer to Form 5329 Instructions for exceptions to the additional taxes. For information on Roth IRA contributions or distributions, refer to Topic 309. For information on conversions from a traditional IRA to a Roth IRA, refer to Publication 590.

5 Money Monitoring Tips

In today's world of finances we need to have a better handle on our money. Do you know how much you spend on that latte' per month? Simple guidelines for monitoring your money will help in the long run.

These Five Tips can help you stay on top. There is no need to continue to have questions about your finances when you can have answers. If you will only monitor a few items you could be well on your way to greater control over your finances.

1.Hang Up on High Phone Bills
Monthly savings up to: $145*Eight out of 10 U.S. families pay too much for phone service, reports billshrink.com. Use one or more of these strategies to ensure yours isn't among them. Take a message. Teens who live at home average 1,742 texts a month. Switch to a family cell plan with unlimited texting. Get smart. College students text less than high school kids. Spring for a smartphone (like an iPhone) with unlimited data if your child agrees to a limited text and calling plan. Drop the landline. Some 20% of homes have only cellphones. Maybe yours should be one. If you decide to keep the landline check the bill for hidden fees. Question your carrier about the fees.

2. Check your medical bills.
Don't assume the bill is correct. Does your insurance company pay for some medical bills? If so attached the hospital or doctor's off bill to the insurance company statement. Compare what your insurance company says is your portion to what the doctor or hospital charges. Sometimes the part the insurance company has already paid can be charged to you because of a simple mistake.

3. Check your auto insurance.
Does your auto insurance company offer you the cheapest rate. Many companies offer deals to match other companies if you find a cheaper rate. Check around for a better auto insurance rate. Did you know your insurance rate is based on where your vehicle is parked at night. i.e your residence address.

4. Check your Grocery bill.
Studies show that if you go to the grocery store when you are hungry you are likely to spend more. Make sure you do not go to the grocery store on an empty stomach. Don't be afraid to use coupons on items you buy on a regular basis. Most stores offer double coupon savings days. Check your local Sunday paper for coupon offers.

5. Check Your Internet Carrier
If you have internet service at your home or office check that you are getting the best deal. Is there a better service than the one you are using. Consider all of you choices. Bigger is not always better.

These tips are just a few to get you to see where you may be able to save. If you will take a look at your normal daily activities you may see other areas you can monitor and maybe save money. Happy Money Monitoring