Well you have filed taxes for this year and are getting a big refund. What to do with this windfall? How about kicking yourself. You do realize that a “tax refund” is made up of two parts – you give your federal or state government YOUR hard earned money throughout the year and when you file your taxes, said government gives you YOUR money back. Effectively you are letting the government have it interest free for the year (so it gets the ‘float’ on the money!) then returns it to you. You are hiding your money under the IRS mattress (except you don’t have access to it.) Here is another idea. Say you get approximately a $4000 refund every year when you file your taxes. What would happen if you reduced your withholding $250 a month and put that into a savings account paying .75% a year. That means you have $3000 in the bank with about $15 interest by the time you would get your $1000 tax refund on Feb 28. Doesn’t sound like much does it? Well what if you put the money into a mutual fund paying about 5% a year in dividends? Now you have $100 in dividends [...]
Tax Musings of a Burbank CPA: Tips for Filing an Amended Return
Did you or your preparer make a mistake on a tax return? Did more information come in affecting a return that has already been filed? This tip from the IRS gives details about amending a previously filed tax return: http://content.govdelivery.com/accounts/USIRS/bulletins/ff9385?reqfrom=share Most important to remember is that with the IRS you have a statute of limitations that runs three years from filing – so if you always filed by April 15, the oldest return you can now amend to get money back is limited to the 2012 return, which can be amended until April 15, 2016. If you filed an extension for 2011, you may still be able to amend that year. Talk to your preparer for more information. For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa
Burbank CPA Tax Musings: The Wrong Way to Select a Bank Account for a College Student
If you have kids going to college or about to, the time is coming to get them to get a low cost checking account with debit card provisions. Watch out for hidden fees and other costs in school sponsored plans, as they can cost you a lot for the convenience. See this article in The Wall Street Journal by Karen Damato about what to look for: http://blogs.wsj.com/totalreturn/2015/03/30/the-wrong-way-to-select-a-bank-account-for-a-college-student/?utm_campaign=Daily+Clips&utm_source=hs_email&utm_medium=email&utm_content=16827317&_hsenc=p2ANqtz–HudcAbFKaUZQYG51LAKzWGIBH6R-Q7-iPzaIceYvnED7t7T72GAXtrMDlcl3TBVAJdusyBzJ0woDot3QVLPCbPsBO0g&_hsmi=16827317 To avoid overdrafts on the account, it is important for college kids to record all their debit purchases and make sure deposits are enough for spending. In other words they need to have a budget and reconcile their bank accounts (ever heard that before?) For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa