Money Blue Book

Due to a momentary cash crunch of my own, my net worth finally dipped during the month of February after months of steady and fairly consistent increases. The decrease in my total assets in comparison to my total liabilities can be attributed to a convergence of simultaneous factors related to the current economic downturn, such as non payments by my cash strapped legal clients (my part time day job) and noticeably late pay checks from my online businesses’ affiliate advertisers. This month in particular, I also had to withdraw a fairly large sum of money from my emergency cash savings fund for family health reasons – primarily to make a good faith contribution to my Alzheimer’s-afflicted grandmother’s assisted care fund. Thus for reasons foreseen and unforeseen, this month necessitated that I dip into my savings and siphon funds from my monthly income stream more so than usual. However, I’m pretty confident the late income payments will be rectified and added onto the following month’s networth update, very possibly resulting in a higher than usual revenue report boost at that time.

Times Are Tough – Let’s Hope President Obama Knows What He’s Doing

In light of the ongoing financial crisis and economic recession, I wake up everyday thanking God for my continuous self employment and my ongoing ability to generate a fairly steady income. Times are certainly very difficult right now and thus far I’ve been able to dodge the painful recession bullets. Only a few years ago I was unemployed and found myself having to file for unemployment insurance benefits to make ends meet. Now, I’m on better financial footing – yet I still feel a great sense of lingering unease and perpetual pessimism as I look around the current economic landscape. A large number of my friends and acquaintances remain unemployed, victims of the never ending waves of corporate layoffs that have eliminated millions of jobs. Until times get better, I can only rise above the despair, sympathize, try not to feel the pangs of survivor guilt, and hope for better days ahead. Unfortunately, with Obama’s 2009 economic stimulus package having recently been passed, I grow more pessimistic than ever. Obama’s initiatives and economic vision for the country are indeed ambitious and commendable, but they are turning into a extremely costly and nightmarish budgetary morass.

As a small business owner of multiple small growing enterprises, I’m remain pretty frustrated and unhappy with President Barack Obama’s proposed plans to punish small business owners such as myself with substantially higher taxes. By raising devastating taxes on those best suited to create new jobs for Americans, his tax slaps will severely stifle economic growth for the future. In my opinion, Obama’s economic stimulus package, filled with porkish and utterly wasteful green jobs and useless expenditures, falls completely flat and misses the mark. I had hoped for a combination of across the board tax cuts for all taxpayers (rich and poor, consumers and businesses alike) along with a second round of much higher dollar value Obama stimulus checks for emergency support to struggling Americans. But it looks like President Obama has a different approach in mind. For those of us who voted Obama into office, let’s hope he is still listening to the voices of his constituency and hasn’t been blinded by his personal new world vision of potentially costly health care reform and the rise of a dubious American green energy industry. Those are perhaps worthy projects for a more prosperous era, but the American people need workable economic stimulus plans and infusions of real financial support now – not pipe dreams.

My Current Net Worth and Financial Status Update Compared To Last Month

High Interest Reward Checking, High Interest Savings, And High Yield CD Rate Deposits

Despite the ongoing failures and collapse of the financial industry, oddly enough, banks still remain the most solid of places to safely store money and earn a reasonable interest rate of return at the same time. Unlike investments in corporate bonds and stocks, bank deposits enjoy extraordinary security and safety guarantees via FDIC insurance, which backs all bank deposits with the full faith and credit of the United States government. Very few other types of financial deposits enjoy similar assurances and protections against unexpected financial loss. Despite the current dire shape of the U.S. economy, we are still very, very far from the type of utter financial devastation needed to render FDIC insured bank savings and certificate of deposit accounts vulnerable to loss.

Currently, the vast majority of my long term cash savings and investments remain deposited with the best online banks in the form of high yield savings accounts and high yield CD’s. My short term cash savings and immediate use funds currently reside in a few high yield checking accounts, some even interestingly saved in checking accounts that offer free reward points for usage (Citibank checking account Thank You Points).

While I still have a sizable sum of money invested in the stock market in the form of index and mutual funds, I have not added to or even touched any of my positions since January of 2008 (more than a year ago). Time after time I have been tempted by the siren of cheap stock prices, but fortunately, my savvier Jiminy Cricket guardian angel has continuously saved me from taking the plunge and buying shares. In my opinion (as well as those shared by fellow ultra bears), this economy is poised to get substantially worse before it will get any better. For the time being, it’s best for all of us to hold on to what we have and not make any hasty moves, lest we lose it all on a whim. Those who have been patiently hoarding their money on the sidelines are better off seeking maximum asset preservation by opening new FDIC insured bank accounts or investing in certificate of deposits offering the best cd rates.

Save Money With Credit Card Rewards That Offer Cash Back

Things days, amidst the ongoing recession and financial crunch, the age old practice of clipping coupons is making a comeback of sorts. Despite the pervasiveness of online shopping deals and discount coupon codes, there are still many basic consumer staples, like groceries, gas, and food where it’s still better to stop by a retail brick and mortar store than to attempt the online route.

For the frugal types out there such as myself who seek to save money whenever possible, one of the easiest and most consistent ways to save money every time you buy, is to purchase using a cash back credit card. While debt-laden or credit irresponsible consumers ought to stay away from credit cards altogether, lest they fall deeper into debt, those that can handle the responsibility of debt usage and are able to pay off their balances in full every month, should take advantage of all that cash back credit card rebates and purchase rewards have to offer. Even though I’m still single and don’t have a full family compliment to shop for, I still regularly earn more than a $1,000 worth of cash back credit card rewards and frequent flyer miles every year, just by using my reward credit cards whenever possible.

Preparing and Filing Taxes Online With TurboTax and H&R Block TaxCut

April 15, tax day – it’s just a month and a half away but interestingly, I still have not filed my federal or state income taxes yet. For some reason, I always seem to put it off into the last few weeks like many other people out there seem to do. As I no longer qualify for the free tax filing options offered by the IRS, I’ll probably take advantage of the myriad of paid, but affordable tax preparation offers available. I’ve been using TurboTax for many years now with a lot of satisfaction and will very likely return again to the same online tax preparation program for my annual ritual.

Frankly, the practice of filing taxes is really not all that convoluted or excruciating with user-friendly online tax preparation programs like TurboTax or TaxCut, but yet I always find an excuse to procrastinate. Maybe it’s my disdain of the IRS or my rebellious preference to make things as inconvenient and cumbersome for the federal government entity that takes so much of my money away, but I never like to file my taxes early. This year, I’m even considering printing my tax forms out manually in paper form to make the IRS’ job even more difficult. My tax preparation work will be completed using TurboTax’s intuitive online tax preparation program, but the filing will be made manually in paper form, requiring the hapless unknown IRS agent reviewing my tax forms to manually transcribe the numbers from my paper tax forms into their computerized system. Why E-file and make their job any easier? Too bad I can’t pay my taxes in pennies and random coinage. If that were such an option, I’d gleefully partake.

Special Offer: 30% Off Using MyFICO Coupon Discount  Code – MYFICOIS8, Or 20% Off With  – CPPSAVINGS

As someone who believes the FICO credit score is the single most important number in any person’s financial life, I track my own credit score and FICO changes closely and religiously. While admittedly a rather mundane and financially nerdy task, the routine monitoring of one’s credit score has far reaching financial benefits beyond just ensuring one’s continuous ability to apply for cheap credit or qualify for a discount loan at great rates. A high FICO credit score has broad ramifications that affect everything from your ability to get the best home mortgage rates and the cheapest car insurance premiums, to your capability of stopping identity theft in its tracks. For those that share my appreciation of maintaining a perpetually high FICO score, the practice is made easier with convenient and user-friendly online tracking tools that provide periodic email updates on credit score changes with updated and archived graphs that trace credit score changes over time.

For my own personal credit score monitoring purposes, I use the Fair Isaac company’s MyFICO Score Watch program to keep continuous track of my credit score changes and updates. While there are numerous competing credit scoring products out there that purport to track your credit score, only the MyFICO.com lineup of FICO credit score products actually offer you a real FICO score, the only credit rating system that’s current universally adopted and used by the vast majority of lenders, creditors, and banks when evaluating your credit worthiness.

The FICO Credit Score Is Important Because It Determines Your Access To The Best Mortgage Rates, Car Loans, Credit Cards, and Jobs

The FICO credit score is the credit scoring methodology brought to you by the Fair Isaac Corporation, the current undisputed leader in the credit scoring market. It is based on the data contained in your personal credit history report and is therefore continuously and routinely updated as credit transactions are added to or removed from your credit files. Thus, as your credit card balances change or when you apply for new loans, your current FICO score is bound to fluctuate as any one score represents only a mere snapshot of your current credit risk at any particular point in time. The FICO score number is based on a numerical sliding scale ranging from 300 to 850 with the higher range representing the least credit risk and the most desirable rating to potential lenders.

While the Fair Isaac Corporation provides the secret but uniform mathematical formula that makes up the coveted FICO credit score, the scoring system is computed based on your credit report information as recorded and retained by the three major credit reporting agencies – Equifax, Experian, and TransUnion. Because your credit history may vary from one credit reporting agency to the next, your FICO credit scores as computed by each credit reporting agency may be different from one another. This is another reason why it’s often advisable for those who are imminently seeking a major credit based acquisition such as a major home mortgage loan, to request their 3 FICO credit scores as individually computed by the big three credit rating agencies.

So why should you know your FICO score and why should you care? That’s because credit lenders do, and so do a vast variety of organizations and groups such as mortgage brokers, credit card companies, insurance companies, and even landlords and potential employers. While the three digit number FICO represents only your past history of fulfilling debt obligations, the use of the number has been increasingly expanded by a variety of stakeholders to evaluate trustworthiness and financial risk beyond its original intended purpose of predicting future ability to pay back loans. Thus, those who wish to successfully engage in any form of commerce or any consumer activity such as getting their home mortgage loan refinanced, obtaining a 0% balance transfer credit card offer, or even passing an apartment rental background check, it’s important to periodically purchase a FICO score report and know where you stand in the eyes of prospective creditors.

Without a doubt (and this is not a mere sales pitch, but a fact), the most reliable way to obtain a genuine FICO score is always via the MyFICO.com website. I advise against obtaining the score through any other less reputable means (as I naively did early on), lest you wind up with one of those useless FAKO credit scores, like the Vantage Score or Plus Score being hawked by a variety of vendors including the credit rating agencies themselves. Remember, the FICO credit score is owned by MyFICO.com and is currently the only widely accepted credit scoring standard among the major U.S. banks and mortgage lenders. When you hear financial experts or random people discussing their credit scores, more likely than not, they are talking about their FICO score, rather than some of the other generic credit score variations.

In the past, it was possible to obtain all 3 of your FICO credit scores from each of the 3 major credit reporting agencies via the MyFICO Complete package, as all three – Experian, Equifax, and TransUnion had agreements with Fair Isaac to sell their respective credit report data and individually computed FICO credit scores via the MyFICO.com homepage. However, due to a recent contractual rift between Experian and MyFICO, the Experian FICO credit score is currently no longer available to ordinary consumers. Obviously this will make it substantially more difficult for ordinary consumers to track and manage their credit scores from one location as it eliminates direct consumer access to one of the three all important FICO scores. Although Experian has indicated that only its own Plus and Vantage Scores will now be directly available to consumers (essentially useless fake credit scores due to their spotty usage among lenders), genuine Experian FICO credit scores will still be available to banks and major lenders that request them. But consumers themselves will no longer be able to find out for themselves where they stand in terms of their Experian FICO scores. Despite the financial depravity and injustice of it all, for the time being at least, ordinary credit score customers will have to rely and make do with the FICO credit scores obtained from the remaining two participating rating agencies – Equifax and TransUnion. Experian should get a punch in the face for this one.

Credit Score Monitoring Can Help Prevent Identity Theft and Help You Improve Your Credit Score Rating

Along with the ability to request your individually computed FICO credit scores from the major credit reporting agencies (currently only Equifax and TransUnion), MyFICO also offers consumers a FICO credit score online monitoring product that helps you keep continuous track of your credit score changes as they occur. With the MyFICO ScoreWatch program, changes to your credit score are automatically plotted out for you by date, and over time, the up and down fluctuations can help you better understand and learn how your financial decisions and mistakes impact this very important number.

For example, as a user of the MyFICO ScoreWatch online product for many years, I witnessed my FICO credit score changes firsthand when I engaged in a festive round of 0% balance transfer arbitrage a few years ago. The sudden large spike in credit card balances caused my FICO score chart to plunge significantly due to my increased debt utilization ratio (a key component of the FICO score). However ScoreWatch showed a dramatically recovered FICO score a year later (by more than 50 points) after I paid back the 0% APR credit card loans in full and on time. Knowing where I stand at all times in the eyes of potential lenders via a continuously updated credit score chart helps to not only motivate me to continuously stay on top of my financial life, but it also encourages me to make regular and timely credit payments to stay as debt-free as possible.

The other primary benefit of using a credit score monitoring tool is to help prevent identity theft. Preventing identity theft is perhaps one of the biggest reasons why someone not otherwise on the verge of purchasing a new car or seeking a home mortgage loan would desire to keep a close watch of their credit score. Heaven forbid, but in the event that your social security number or identity is compromised, and a free-wheeling thief decides to open a  new credit card account in your name, your automated MyFICO ScoreWatch sentry is likely to be one of the first lines of defense against the unauthorized intrusion. The MyFICO ScoreWatch system tracks changes in credit balances and payment history, and thus sudden increases or appearances of new credit card accounts will quickly trigger an online alert and response. Such alerts can warn you to investigate and find out the cause, before any potential identity theft attempt can ever inflict major financial harm. Priced around the same as the monthly fees charged by identity theft prevention-only products like LifeLock, but with the added benefit of tracking your FICO credit score updates as well, the MyFICO ScoreWatch product offers a pretty attractive multi-service package to credit score addicts and casual personal finance junkies alike.

MyFICO Products Offer Free FICO Credit Scores With 30-Day Trial Periods

Unlike your official free credit reports, your official FICO credit scores cannot be obtained in the same way for free. However, that doesn’t mean there aren’t any discounted MyFICO deals out there that can provide you your genuine FICO credit score at 15-20% off, or even for free courtesy of a free trial period. Currently, MyFICO offers free product trial options to get your FICO score for free, albeit such methods usually require you to cancel within a pre-determined 30 day trial period to avoid any cost. While I have since moved on to paying for my single FICO’s and credit score monitoring services, when I was still a poor struggling student, I frequently relied on popularly available free FICO credit score trial periods via MyFICO to get my three digit numbers. For those who aren’t certain if a particular MyFICO product is suited for them, I recommend checking out the desired links below to watch the accompanying demonstration video clips to get a better overview of how each individual FICO product works.

Save 20% Off FICO Credit Score Products With MyFICO Discount Offers

Aside from the free FICO and free credit report trial periods mentioned above, MyFICO currently offers low cost and affordable ways to obtain your FICO credit score and credit report with the aid of FICO coupon codes. To save 20% off all MyFICO offers, simply submit the following discount code at checkout for 20% off the listed price -  CPPSAVINGS. Please write a comment if the code no longer works. If the 20% off FICO promo code worked for you or if you have any favorable or negative experiences worth sharing, please join the comment discussion below.

1) MyFICO Score Watch – Free FICO With 30 Day Trial Period (Equifax) - The popular MyFICO ScoreWatch online tool allows you to keep close watch of your genuine FICO credit score as it fluctuates up and down based on changes made to your personal credit reports by the credit reporting agencies. Best of all, your past FICO score changes are archived and saved in a very intuitive graphical chart for your review. Your credit report at Equifax is monitored on a daily basis while the associated FICO credit score is tracked and updated on a weekly basis. Anytime there is a credit report change that causes your FICO to suddenly rise or drop, such as a credit card balance change, late payment, or a new account, you are immediately notified online or via phone text message.

For those looking for extra identity theft protection, ScoreWatch alerts you whenever a new credit account has been opened in your name, offering you the warning necessary to investigate before the unauthorized access can destroy your credit irretrievably. A MyFICO ScoreWatch subscription also provides you Score Power reports that break down the details of your Equifax credit report to fully explain the reasons hurting or helping your credit score. These reports are invaluable to those trying to increase and boost their FICO credit scores in anticipation of a future loan or mortgage. There is also a 30-day free trial available. So long as you cancel in time, you can walk away with a free FICO credit score and credit report by Equifax.

2) MyFICO Standard Score and Report - One FICO and One Credit Report (Choice Of Equifax or TransUnion) – If you simply wish to know your FICO credit score and have run out of free FICO credit score trial offers, this MyFICO package is the one for you. With the MyFICO Standard Score and Report, you get to pick a genuine FICO formulated credit score and credit report from either one of Equifax or Trans Union. Each FICO credit report comes with a full explanation of how lenders view you, including a detailed listing of all of your credit card accounts, auto loans, student loans, pending debt collections activity, court judgments, bankruptcies, tax liens, and home mortgage loans in your name. The standard credit report with FICO package also comes with a customized recommendation as to the best course of action to boost your FICO score based on the specifics and particulars of your current situation.

3) MyFICO Quarterly Monitoring - $4.95 FICO Score With 30 Day Trial (TransUnion) – This offer allows you to get 4 genuine FICO credit scores and credit reports from the TransUnion credit reporting agency during a 12 month period. During the course of a year, MyFICO will automatically pull your credit report and FICO score quarterly (every 3 months) so you’ll be kept up to date as to what’s happening with your credit in regular periodic intervals. MyFICO Quarterly Monitoring also offers a weekly monitoring service for new information tied to your identity including changes in public information and new credit based activity. This package is geared towards those interested in arming themselves against identity theft. Interestingly, the Quarterly Monitoring subscription even comes with complimentary identity theft insurance up to $25,000 with extra assistance towards identity theft resolution in the event you ever become a victim.

Those who are just looking to get a cheap FICO credit score or one that is heavily discounted may wish to cancel after trying the service out for a month. You can cancel anytime after the first month and simply pay the single $4.95 monthly fee and walk away with an affordable FICO score provided by TransUnion. Otherwise, the upfront annual cost is $49.95.

4) Suze Orman’s MyFICO Platinum Kit - $49.95 (All 3 Credit Reports, and FICO Scores From Equifax and TransUnion) – This offer is for those who want to know their complete MyFICO credit score and credit report in a single snapshot form (nearly the same as the former MyFICO Credit Complete package). With the Suze Orman MyFICO Platinum Kit, you get all 3 of your credit reports from Equifax, Experian, and TransUnion, along with your Equifax and TransUnion generated FICO credit scores.

For those who don’t read her books, watch CNBC, and don’t know who she is – Suze Orman’s a pretty well known and popular financial expert, known for her in-your-face big sister-like financial quips. Some find her berating style a bit annoying, but I actually find her to be pretty enduring, albeit frequently a bit too blunt. However, her FICO Platinum package does a pretty decent job of walking you through the FICO score experience step by step and offers lots of useful tidbits to help you take control of your credit and harness the power of a high credit score. Because it’s a Suze Orman product, the package is especially suited for financial beginners and those focused on paying off mounds of debt.

Recession? What Recession? Presenting – The New Visa Black Credit Card

Currently, the economy is undergoing a major recession, with consumer spending tanking, and dire ramifications emerging for the future of our financial and banking systems. But if you examined the newly released promotional material and advertisement literature for the new Visa Black Card, you might have thought otherwise. With an eye popping annual fee and lavish credit card perks oozing to great  excess, this new credit card offer from the renown Barclays Bank definitely does not reflect the current mainstream economic sentiment.

The Original Black Card Craze

Years ago, the first card to emerge and promote itself through rumors and word of mouth marketing as the ultimate status symbol for high net worth spenders – was the American Express Centurion Black Card. With its extravagant spending perks and incredibly high credit limits, enough to buy a few palatial mansions and small estates with just a few card swipes, the Amex Black Centurion Card was considered to be the ultimate materialistic status symbol of its day, at least to those superficial few that actually cared about those types of things. Known as the first true “Black Card”, the Amex Centurion program’s strong reputation of exclusivity enabled it to attract the interest of a certain wealthy and high pedigree clientele – invite-only applicants, who were willing to spend more than $250,000 a year on their existing American Express credit cards and pay an annual fee of $2,500 to gain entrance into the exclusive program.

The New Visa Black Card – Another Card Designed For The Uber-Rich

Now, a new Black Card has emerged from the financial decadence of yesteryears, clad in black – this time from Barclays Bank Delaware – in the form of a more versatile and widely accepted Visa brand credit card. Now, for the low, low bottom basement price of just $495 a year (with absolutely no sarcasm intended of course), you can now get your grubby paws on and own your very own genuine Black Card courtesy of Visa. Fashioned from an admittedly attractive carbon graphite material (as opposed to the paltry plastic that adorns the credit cards of common peasant folk such as myself), and featuring a virtually unlimited credit limit with the ability to earn 1% cash back of all purchases, the new Black Visa Card appears to personify wealthy and power – or financial overkill – depending on how you look at it.

While seemingly totally out of place on a financial landscape littered with the dead and twitching bodies of former banking giants and credit lending organizations, the extravagant card features and exorbitant fees of the exclusive Visa Black Card from Barclays actually makes a lot of sense if you think about it. Rather than cater to the unpredictable credit card appetites and questionably untimely payment whims of ordinary consumers who may or may not be in the proper financial position at all times to pay back their credit card spending debts, why not peddle a product that targets the cream of the crop – the top percent of the American population with the vast financial means to afford their high spending lifestyle? Being not only able to rake in larger profit percentages from higher credit card merchant fees through the high rate spending habits of the financial elite, but also able to reduce the risk of dealing with ordinary Joe and Jane Plumbers struggling amidst a stagnant economy seems like the financial sure fire way to go in terms of profiting from credit card spending in an otherwise down economy.

Review Of The Visa Black Card’s Features and Offers

One of the Visa Black Card’s most aggressive promotional hitch is its unique exclusivity and selective membership. The card admittedly does state in its promotional tracts that the card is exclusive in nature and therefore not freely available to just anyone. While the Black Card’s exclusivity doesn’t stem from its availability to only just black people (as comedian Stephen Colbert comically lampoons in a Colbert Report TV skit), the card’s marketing material does state that the program will only be limited to the top 1% of U.S. residents – “to ensure the highest caliber of personal service is provided to every customer” as they put it. Whether this is indeed a fact or just an artificially generated gimmick to inspire awe and mythical reverence in the Black Card name remains to be seen.

For those with high credit scores who apply and are approved for the Visa Black Card, selected members get to enjoy the following supposedly exclusive privileges:

1. Limited Membership – Obviously a sought after feature for the high classy types who want to segregate themselves from the economic stimulus check-hungry masses.
2. 24-Hour Concierge Service – This privilege I do find very appealing – though I’m not sure what I’d use it for exactly.
3. Exclusive Rewards Program – Busy business travelers will definitely find the travel, airline, and hotel rewards very appealing, and the free upgrades worth the annual program cost of Black Card ownership.
4. Business Travel Insurance Protection – Road warriors may appreciate the worldwide travel insurance, baggage protection, and card purchase guarantees available to cardholders.
5. Luxury Gifts – Even rich people must appreciate expensive freebies.
6. Patent Pending Carbon Card – The card does look and feel pretty cool. It’s the ultimate buying tool – as the Black Card’s website wisely points out to those who may skeptically think otherwise.
7. Annual Fee Of $495 – *Gasp* Unless there’s a decimal point missing in that numerical figure, this is probably a deal breaker for non high net worth applicants. However, the pricey annual fee will probably not faze the Black Card loyalists out there.

Perhaps like all super credit card offers for the rich and famous, the greatest appeal of the Visa Black Card, aside from its apparent exclusivity, is its unique access to a free members-only concierge service that operates at your beck and call, 24 hours a day, 7 days a week via telephone and email. With the Visa Black Card’s concierge service, members get to enjoy personalized and complimentary assistance towards the fulfillment of their entertainment, travel, business, shopping, and lifestyle needs. For the ultra-rich clientele who is perfectly capable of affording anything they wish, oftentimes, it’s the ability to acquire a product or service on demand as soon as it’s desired that’s worth its weight in gold. The ability of the Visa Black Card to tap into a service whose sole purpose is to help you open doors and acquire access to difficult-to-find products, or acquire ticketing admittance to otherwise unobtainable sporting events or exclusive restaurants may appeal greatly to upper echelon card carrying customers.

So, Does It Make Sense To Apply For The New Visa Black Credit Card?

Obviously for those of you who couldn’t give a hoot, the Visa Black Card’s not meant for your financial tastes. But for the lot of you who do exhibit some interest, read on. While the Visa Black Card does indeed provide a measure of exclusivity and offer a myriad of attractive credit card benefits such as a 1% cash back reward rate on all card purchases and a frequently sought after introductory 0% APR balance transfer rate, many skeptics (myself included) may have a legitimate argument when we point out that the card doesn’t really offer anything that is genuinely exclusive or unavailable in other credit card programs. Many of the same high end perks of the Visa Black Card can be find in other high end card programs like the American Express Platinum, which offers virtually the same travel reward benefits and 24 hour concierge services, for the same comparable annual fee. One can even argue that the original “Black Card” – the American Express Black Centurion Card, stills promotes a greater sense of wealth and exclusive entitlement with its invitation-only application process. Unlike the Amex Centurion Card, the Visa Black Card can be directly applied for, while the Black Amex is by exclusive invitation only based on a pre-demonstration of the ability to record credit card charges at a very high rate for a certain period of time. It’s clear the Black Visa Card is going right after the Amex Black Centurion crowd, but I’m not certain the program sufficiently distinguishes itself other than by name only. Is simply slapping the Black Card label onto the credit card offer sufficient to give it mystique and appeal among the high end trendy crowd? I’m not sure.

For big time spenders and those who place value into such indicators of wealth and status, the Visa Black Card’s annual fee is easily paid for by the cash back offers, free gift rewards, and convenience of the 24 hour concierge services. But as an admittedly fairly frugal saver and spender, I’m not sure what type of status or self esteem boost I would gain from carrying around the carbon fiber credit card in my wallet. But then, I haven’t become a millionaire and reached wealthy status yet.

Review Of Free Tax Filing Software Options – TurboTax, TaxCut, and TaxAct

Tax day is a stressful and confusing time for many people as we scramble around with our W-2’s and 1040 forms, but it doesn’t have to be. Currently, there is a wealth of free tax filing resources available to help people like us with timely and accurate tax preparation, courtesy of organizations like the IRS and the U.S. government. Thus, even those those who do not have the extra financial means to afford premium tax software programs like TurboTax and Taxcut still have a wide selection of competent tax assistance programs at their disposal. Depending on their individual demographics such as age or income, and depending on the availability of other special status factors such as active duty in the armed services, certain taxpayers may even qualify for free federal government sponsored tax preparation assistance and free tax filing.

Free Tax Filing With IRS Free File Offers and Non Profit Volunteer Tax Preparation Services

The various free tax preparation and free tax filing services available can be broken down into two broad categories – offers that stem from the federal government’s partnership program to bring affordable partially subsidized tax filing services to lower income people, and offers that are provided by volunteer tax organizations funded by non-profit interest groups.

Taxpayers who wish to prepare and file their taxes electronically for free can take advantage of the “Free File” tax return preparation program provided by private tax vendors such as Turbo Tax, Tax Cut, and Tax Act, in partnership with the Internal Revenue Service (IRS). While the federally sponsored tax preparation and filing programs are indeed free for those qualified, the program costs are only waived for the federal income tax portion. Those who use the online tax services of an IRS “Free File” software provider must be mindful of the inevitable up-sell of the state income tax portion – in which the “Free File” tax software vendors offer the federal portion for free but try to sell you on paying for additional (and often necessary) state tax preparation. Marketing strategy has shone that loyal customers of a proven free software product have a tendency to return to the same familiar product again, even when they may not qualify for the original free trial version anymore. The hopes of these free tax software providers is to get you acquainted with their free federal tax filing programs today so that one day when your income finally exceeds the “Free File” qualification limits, you will be will more receptive to paying for the same service.

Be Mindful Of Inevitable Up-Selling For Paid State Income Tax Preparation and Filing

Oftentimes however, taxpayers using the services of the “Free File” software vendors are surprised by the last second add-ons, tax refund anticipation loan solicitations, and other marketing sales pitches. While there is no obligation for taxpayers to buy any of the products or services marketed by the “Free File” tax providers, because many times these convenient add-ons (for services like state tax form preparation) crop up so late in the free federal tax preparation process, they oftentimes leave the taxpayer with little choice but to pay the extra requested charges or face having to start the lengthy process all over again with another tax software vendor. However, despite the up-sell tactics used, there is nothing really outrageously deceptive or harmful with the practice of product up-selling in the case of “Free File” offers (especially for things like state tax return preparation) as they frequently do save the taxpayer time and hassle, particularly since the tax provider may be able to transfer all of the prepared tax data from the completed free federal tax forms to the paid state tax forms automatically for you. Furthermore, the state income tax form upsales usually only cost an additional $15-20 for electronic E-file. Of course, one probably ought to check his or her state’s taxation authorities to see if he or she can e-file or mail in state income tax return forms for free.

As always with utilizing online programs, particularly ones that will necessarily request confidential data and information from you such as your social security number, it’s important to be extra careful of the myriad of tax preparation scams floating around the Internet during tax season. Remember, when dealing with a tax preparation and tax filing firm, you are inevitably providing them all of the information they would need to fraudulently steal your identity. Always seek out a trusted and “Authorized IRS e-file Provider”, or stick to the popular “Free-File” tax vendors and verified free tax preparation services in the list I’ve provided below. Remember, it’s important to stay vigilant against tax scams and tax frauds to avoid succumbing to the dangers and headaches of identity theft.

Free Tax Filing Is Also Available to Qualified Low Income, Elderly, Or Active Military Personnel

Those  who are puzzled or confused by the “Free-File” online tax preparation options may consider seeking more personalized live tax help from free volunteer-based tax assistance programs. The most popular free in-person tax preparation programs for qualified taxpayers include the IRS’ Volunteer Income Tax Assistance Program and the Tax Counseling for the Elderly Program via the AARP organization. If you need guidance with your tax return or are not sure which tax credits or deductions to take, you may want to visit one of these volunteer tax assistance sites for some one-on-one tax prep help. Most of the walk-in tax centers provide full service tax preparation help for both federal and state returns with the help of fully trained community volunteers and sometimes professional tax preparers, however, they are best suited for straightforward and uncomplicated tax returns. Most of these community tax assistance organizations are also need-based and limited to certain types of people – such as lower income taxpayers, elderly folks, or active military personnel.

Below is a list of the verified and legitimate free 2009 tax preparation and tax filing resources I am aware of for tax year 2008. Please share your personal experiences with any of the the ones I’ve listed or have failed to mention:

1) TurboTax Free File Edition – Intuit’s TurboTax currently offers a free online edition of its popular tax preparation software to taxpayers who only need to file 1040EZ or simple straight forward 1040 tax return forms. The TurboTax free edition is designed for those who have simple tax returns and don’t need much tax guidance regardless of income level. If you have complicated child care expenses, mortgages, medical expenses, have made charitable donations, own stock investments, rental properties, or run your own business, you may need to upgrade to a paid premium edition of TurboTax. The TurboTax Free Edition doesn’t cover tax Schedules C, D, E, and F (required for taxpayers who own a business or have sold investments). Otherwise, those who have simple tax returns with just the standard deduction or a few basic itemized deductions, should take a test run of the TurboTax free version. At the very least you can try the program without cost and decide whether your needs are fulfilled by the free entry level version or whether you will require a more sophisticated software upgrade.

The TurboTax online free edition offers an intuitive, interview format tax preparation process featuring data compatibility with Quicken and various personal finance spreadsheet programs, along with integrated electronic state filing (at an additional cost). TurboTax provides a list of all the tax schedules and tax forms included in the federal Free File Edition, and as you will note, most of the major forms such as Schedule A (for basic itemized tax deductions) are included under the free filing program. While TurboTax is indeed free for federal return preparation and filing, those of you who need to file a state return as well will have to pay a little extra ($25.95).

• TurboTax Freedom Edition – As a special promotion, TurboTax also offers free federal and state tax return preparation and e-filing to qualified taxpayers who either have an adjusted gross income (AGI) of $30,000 or less, qualify for the Earned Income Tax Credit (EITC), or can qualify as active duty military members with an AGI of $56,000 or less. Qualified taxpayers can prepare and file their federal returns for free with the TurboTax Freedom Edition. Freedom Edition participants may also qualify for free state tax filing as well if filed in a state that sponsors its own “Free File” state program. Free File Program states include: AL, AR, AZ, GA, ID, IA, KY, MA, MI, MN, MO, MS, NY, ND, NC, OK, OR, RI, SC, VT, and WV. Otherwise, if your state’s not included, you can still prepare and file a state return with the Freedom Edition for just $9.95. Still not a bad deal at all for lower income taxpayers who qualify. Although the TurboTax Freedom Edition supports the Form 1040 long form with itemized deductions in addition to the basic Form 1040EZ, it does not support tax situations that are uncommon to lower income taxpayers, such as complex investments, rental property, and royalty income.
• TurboTax Business (Free Download) - Those who operate their own small business, run a corporation, a partnership, or a multi member limited liability company (LLC) may wish to try out the free TurboTax Business Edition with free federal E-filing. Intuit is hoping that once you try their promotional product download (which is the same as the paid TurboTax Business version), you’ll come back to TurboTax for your future paid tax preparation needs.

2) H&R Block TaxCut Free File – HR Block offers a basic free online tax preparation software and free federal E-filing package with its TaxCut Free Federal Edition for those with simple returns, such as those who are filing 1040EZ’s or have run of the mill 1040’s. The TaxCut Free Federal Edition offers a simple tax preparation process via an easy to use, step by step tax interview with automatic error and anti-audit double checking. However, if you’re looking to import your prior year’s tax data or if you’re looking to get extra tax preparation guidance for your Schedule C, home mortgage, rental property, home office, or business expenses, you will have to go with a more premium TaxCut version instead. While federal income tax preparation assistance is indeed free with the TaxCut Free File Edition, adding a state income tax return will cost extra – an upsell added price of $29.95.

3) TaxAct Free File – While not as popular as TurboTax or H&R Block’s TaxCut, TaxAct has quietly competed well against the two tax preparation giants. TaxAct offers its own free federal edition for those who would prefer to do away with paid complete tax support in favor of free tax preparation and free E-filing. As always with free tax preparation programs, TaxAct’s free filing edition is best suited for those with basic, non complex tax returns. Free TaxAct supports all of the major tax forms (view list) including 1040 and 1040EZ with itemized deductions. The only major TaxAct features not supported in the free version are data importation and complex deduction calculators for those who run their own small businesses. Otherwise, the TaxAct free version functions just like the paid version, allowing you to prepare your taxes at your own pace and return to your saved work as needed until you are finished.

Cost-wise, your free federal E-file is included, but tacking on an additional state income tax return will cost $13.95 (which is still a lot cheaper than both TurboTax and TaxCut’s state tax preparation prices). If you’re filing both the federal and state tax forms together, TaxAct’s Free File offer is one of the cheapest deals around.

4) TaxSlayer Free Tax Filing For Active Military – TaxSlayer online tax preparation and tax filing is free for active duty military personnel. While the online TaxSlayer classic edition offers free federal and state tax preparation services for non-military civilians with downloading, e-Filing, and printing at $9.95 each, active military personnel get to enjoy both the tax preparation and filing for free. Active military servicemen and women also get to add multiple state returns with no additional charge. If you are not sure whether you qualify, please visit the TaxSlayer website and submit your military EIN number from your W-2 Form into the query box to see if you are eligible for free TaxSlayer services.

5) IRS Free File Program – Through a partnership between the IRS and a group of private sector tax software companies called the Free File Alliance, those whose adjusted gross income in 2008 was less than $56,000 may be eligible for free tax services. If your income was less than $56,000 in 2008, you may be qualified to select a free tax preparation and free tax filing vendor from the the IRS Free File website to process your tax paperwork for you. To participate, you’ll need to visit the IRS’ website, fill out a short tax related questionnaire, and get matched up with an appropriate free tax preparation company. Those who wish to know more can obtain a list of all the Free File Alliance companies here. Those who can meet the program’s income restrictive terms should definitely take advantage of this government sponsored offer.

6) IRS Free File Fillable Forms – The IRS Free File Fillable Form option is not a free tax preparation software, but the most basic way of electronically filing your federal tax return without charge. Simply put – the site’s just a series of blank tax forms. You simply select the tax forms desired, fill in your appropriate tax return numbers, and E-file for free. There are no income restrictions and the service is available to everyone. For those of you who know exactly what you are doing and prefer to do your taxes manually by hand (not sure why anyone would want to, in this day and age of computer assisted tasks), this is a free tax filing option to consider, especially for those whose high income limits would otherwise disqualify them from other free electronic tax filing alternatives. Do keep in mind that the IRS Free File Fillable Forms service is not the same as the IRS Free File Program. The IRS Free File Program offers free tax preparation with free electronic filing, while this one only offers free basic filing without the extra preparation assistance.

7) Volunteer Income Tax Preparation Program (VITA) – The VITA program consists of a network of IRS sponsored tax volunteer sites that provide free tax preparation and free filing services to those people with low to moderate incomes, or those with limited English language abilities. Generally, the VITA sites assist taxpayers who have net incomes below $42,000 – individuals who are usually eligible for low income tax benefits such as the earned income tax credit. The certified tax preparation volunteers provided by the free program usually receive tax training to help prepare basic tax returns in places around the country. These free walk-in VITA centers are usually located in local community facilities such as libraries, elementary schools, shopping malls, and other neighborhood centers. While there is no comprehensive list of VITA locations available on the Internet, you can find your nearest VITA site by calling: 1-800-829-1040.

When I was in law school, I worked as a tax preparation volunteer through the VITA program and witnessed a great deal of care on the part of VITA volunteers. The VITA tax preparation volunteers may not always be the best trained to handle complex tax law issues, but they are generally fairly knowledgeable and very eager to help with basic tax cases.

8) AARP Tax-Aide Clinics (For Senior Citizens) - The VITA volunteer tax program’s sister companion is the Tax Counseling For the Elderly Program (TCE). Currently, the free tax assistance initiative for low income taxpayers with special attention to those 60 and over is being spearheaded by the AARP’s Tax-Aide program. Those who are age 60 or older with low to moderately low incomes may be able to call in and schedule an appointment for some free tax preparation and free tax counseling assistance. At any one of the AARP Tax-Aide locations, you’ll find trained tax preparation volunteers who can help you file your federal and state tax returns. Oftentimes, many of the volunteers who provide the tax filing assistance are themselves senior citizens affiliated with various IRS grant funded non profits. If you wish to find an AARP Tax-Aide center, please run a search with this online Tax-Aide finder tool, or locate your nearest AARP Tax-Aide site by calling 1-888-227-7669.

9) Low Income Tax Payer Clinics (LITC) - Low income tax preparation clinics are partially funded by the IRS and their goal is to provide affordable representation to low income taxpayers before the IRS in cases involving tax audits, tax appeals, tax collections, and federal tax litigation (usually for free or for a small nominal charge). The low income taxpayer clinics are usually operated and managed by non profit groups, law schools, or business schools with each independently evaluating prospective clients for program eligibility in terms of income limits and suitability.

When I was in law school, I participated in my school’s low income taxpayer clinic program as a law student where I assisted clients of limited financial means with their tax related problems. During my time in the clinic, I helped my clients resolve a variety of tax related issues including helping a few negotiate Offer In Compromise settlement negotiations with the IRS for lower fixed payments. For those who qualify, I highly recommend the low income tax clinics as a way to resolve more complex consumer tax issues affordably with the help of trained tax professionals. While tax clinics run by places like law schools are usually staffed by law students in training, such clinical programs are usually supervised by a fairly hands-on tax law veteran. In my case, while working at my school’s low income taxpayer clinic, I was supervised by a law school professor who was also a major partner at a prominent tax law firm nearby.