I did something today that I’ve never done before – I filed an amended tax return .  Back in March, I filed my taxes but didn’t claim the first-time homebuyer credit .  Armed with the proper paperwork, forms, and software, it took, literally, 10 minutes to amend the return. According to the IRS website, returns claiming the first-time homebuyer credit must be mailed, with correct documentation, and cannot be…  Read More →

David Ning over at Money Ning disagrees with the conclusion of this how-rich-is-rich article from CNN Money (via Yahoo! Finance).  The conclusion is that it might be necessary to have $12 million banked to retire. Now, to be fair, the $12 million figure comes from assumptions are out of reach for most people: In retirement for sixty-five years, starting at age 35 — plenty of time to perfect that shuffleboard technique, I…  Read More →

Say the words “estate planning” and what typically comes to mind are extravagant estates worth millions of dollars. Estate planning is for celebrities and the very wealthy, right? I  Read More →

SavingAdvice is starting a new column that’s going to look at strange, offbeat ways to save and make money. Anything that’s a little odd, uncommon, or contrarian is fair game — as long as it’s legal. You probably already know about Roth IRA’s. These are IRA’s that you fund with after tax dollars and then, when  Read More →

Each year after I do my taxes, I’ve often wondered what happens to my tax return after it reaches the IRS. Well, I procured some answers from a guest writer who offered me the following nuggets of information. What happens after you file your tax return depends first and foremost on whether the IRS is satisfied with some of the basic information that you provided. If the IRS is satisfied, then they will “accept your return”. If they... 

Share The tax code in the US is a constantly changing source of frustration for many Americans. Since the first income tax was imposed in 1861, Americans have been paying the government a portion of their income. Tax laws are now so complex, many people seek help from professional accountants in preparing their tax returns, as no one wants to pay too much or make an error that could trigger an audit. Businesses are also…  Read More →

How many people in your life lecture you about finances, but don’t have their own finances under control? Nothing is more infuriating than someone telling me I’m “ throwing away money on rent ” when they haven’t spend even 2 hours running the numbers. Or someone who proudly proclaims that they found a higher interest rate on a new bank, which is giving them 2%!!! When you politely say, Wow! How much is that worth?... 

In the spirit of humorist Mark Twain, who once remarked that the only surefire way to distinguish a taxidermist from a tax collector is that the former will let you keep your hide, BillShrink offers a bit of comic relief for those dreading the upcoming tax deadline. Of course if you qualify for a nice refund, you’ve probably already completed the tax return process, cashed and spent your gift from Uncle Sam. In that case, sit back and gloat.... 

ShareThis Around February, my commute home starts to give me a knot in my stomach. That’s because my bus passes a tax-preparation shop where, as tax season draws nearer, a woman stands outside wearing a Lady Liberty costume and holding a sign that promotes the shop’s services. Oh, great , I think, it’s time to dance with the IRS again . I don’t know why, but the idea of doing taxes terrifies me. All those forms requiring... 

Did you know that you can make money moves this year that can help you save on last year’s taxes?It’s true. Linsey’s post on procrastination and tax tips reminded me that procrastination can pay, specifically in the form of a lower tax bill. If you hurry or file an extension, you can reduce your income and your tax liability. Fund tax-advantaged accounts (HSA, SEP-IRA, IRA) Health Savings Account ( Form 1040, Line 25 ; plus... 

Tax time is annoying and pressure-filled enough when your return is 100% accurate. Make a few mistakes, however, and April can quickly devolve into a nightmarish ordeal. What seems to you like little more than a trivial error can rapidly trigger suspicion (or even fines and audits) from your friends at the IRS. Many a taxpayer has found himself hunched over a desk – head in hands – for days or weeks on end fixing careless tax…  Read More →

By Philip Brewer There are a lot of people who used to have a good-paying job but who have been unemployed or underemployed for more than a year. If you’re one of those people, here’s a clever tax move that can permanently cut your future tax burden. If you used to have a good-paying job, you probably have some tax-deferred…  Read More →

By Tisha Tolar Tax time is never a fun time. It requires a lot of organization and numbers, and if the numbers don’t jive you could find yourself owing a nice chunk of change to the state, local, and federal governments. In some cases, people fall behind in filing their annual returns. If you owe back taxes for previous years because you didn’t file an income tax return, …  Read More →

The following article is a guest post by Matt Robinson, a tax preparer and accountant at Tax Debt Help, LLC. Very few tax audits are a result of mathematical mistakes made on your tax return. The IRS runs every tax return through computers that automatically correct any mathematical errors, and check for incorrect deduction amounts.  Read More →

By Will Chen Outright , a free online bookkeeping service for the self-employed and small business owners, is giving away $2,000 to Wise Bread readers! In addition to the contest, Outright co-founder Kevin  Read More →