Tax deductions: What is your clothing donation valued at?

By MoneyBlueBook

When I was little I always wondered why my parents bothered to rummage through our closets, cabinets, shoe racks, and sock drawers for assorted clothing every few years. I would see my mom folding and stacking old and outdated clothes that I never wore anymore into black garbage bags and deliver them to the Salvation Army or Goodwill. It wasn't until I started working and earning income that I finally realized why it made sense to take the time to compile old apparel and send them to local charities. Other than the usual altruistic factors, the biggest reason is to take full advantage of the IRS itemized charitable tax deduction for qualified clothing donations.

Not that we all shouldn't be donating to charities out of the kindness of our hearts, but Uncle Sam has provided us an attractive incentive in the form of tax breaks for charitable contributions. Most people are keenly aware that they get a tax deductible write off when they tithe or donate money to a charitable organization like their local church. But some seem to forget that the deduction also applies to noncash donations like clothing, shoes, and furniture, so long as they are in reasonably good condition. Of course, like with all good perks there are ground rules in place to prevent abusive taxpayers from going crazy and taking unfair liberty with the charitable deduction. Without these regulations, you would probably have people assigning all sorts of outrageous valuations on the items they donate ($25 for a used T-shirt complete

By MoneyBlueBook

It's unbelievable how much it costs to buy a house these days. Looking at single family home prices in my area and even those located in less appealing crime ridden neighborhoods, I am just now realizing that I may never be able to afford one in my lifetime. Well, at least not the American dream home I always imagined. Not that I ever really wanted the traditional country home with the proverbial white picket fences, but somehow I always envisioned I would be closer to this dream by my late 20's. I always figured by this time I would already be the proud owner of a brand new single family home or at least a newly constructed townhouse. So far, due to the lack of sufficient finances to match the out of control housing prices, I have not been able to attain my goal. Is this dream becoming a fantasy I wonder?

Ever since the beginning, the great American dream of prosperity and happiness has always revolved around owning a piece of land (preferably with a house on top of it). Home ownership has always been associated with security and stability. The mere act of possessing a parcel to call your own has always symbolized the triumph of moving from the unexplainable stigma of renting to a greater plane, found only on higher rungs up the economic and social ladder. But in recent years, even those who thought they had found their American dream have seen it shatter into a nightmare of swirling foreclosures and defaulting

By MoneyBlueBook

Not too long ago I went on vacation in East Asia. While I was there I had the fortune to be accompanied by local friends who could spot me so I didn't need to convert my American dollars into local currency. However there were at least two occasions when I glanced upon several beautiful small wooden art pieces that I wanted to buy. While I had a few local currency bills on me, it wasn't enough to buy the slightly expensive art pieces. So I had to resort to what I ordinarily would do back home in the United States - pull out my trusty cash back credit card. Fortunately, I had the foresight prior to traveling to another country, to research and familiarize myself with credit card foreign currency exchange fees.

Watch Out For Hidden International Credit Card Foreign Currency Exchange Charges

While foreign currency exchange fees are now generally listed and disclosed by credit card companies, card issuers rarely publicize these hidden charges, preferring to leave them in the fine print. While some complain that the majority of these interchange fees are not used to process the actual currency exchange, but rather used to fund credit card reward programs and other direct advertising campaigns, the real concern is the lack of education when it comes to incurring these fees. Frequently, consumers who use their credit cards overseas come home to the unwelcome surprise of costly fees on their billing statement.

The foreign currency transaction fee for credit card purchases is comprised of two parts -

By MoneyBlueBook

Reward credit card and cash back rebates are great because you get to earn money and receive what is essentially a discount for making ordinary everyday purchases. Today I decided to review my credit card accounts and convert some of my accumulated reward points into usable cash back and retail gift cards. For my versatile Fidelity Investment Reward Card, which earns me 1.5% back on all purchases, I converted 5000 World Points into a $75 deposit towards my linked Fidelity trading account. I also redeemed 40,000 of my total balance of 46,155 Citi Thank You points into four wonderful $100 retail gift cards. I chose to receive high value rewards with the best ThankYou redemption value, and picked out gift cards from Marshalls, Macy's, and Gap. Looks like I'll be going bargain clothing shopping again in the near future in about 1-3 weeks when they arrive.

Am I Supposed To Report Credit Card Rewards and Cash Rebates On My Tax Return?

My reward redemption routine is a ritual that happens at least once every year. Over the years, I've earned quite a tidy sum of credit card rewards comprised of cash back, rebate points, airline miles, and gift cards. But I've never listed the earnings as taxable income on my federal income tax return or reported a single cent of my rebate earnings to the Internal Revenue Service (IRS). I simply haven't given it much thought until recently. For the last few years I've probably pulled in at least $3,000 worth of personal credit

By MoneyBlueBook

Updated - The IRS has released the official 2008 Economic Stimulus Payment Schedule.

Also, read about the prospects and chances of an Obama stimulus check for 2009.

Based on the substantial traffic and comments I've been receiving for the article I wrote explaining and breaking down the details of the 2008 Stimulus Rebate Package, it's clear that everyone in the United States is concerned about their rebate checks. Everybody wants to know how large their own tax rebate check will be and when they can expect to receive it.

There are many questions to be answered and I've been trying my best to respond to them all. While most questions have been straightforward, others have been slightly more complicated with issues relating to Chapter 7 and 13 bankruptcy filings, or issues relating to wage garnishment and student loan liens. But I will continue to do my best to answer your flurry of tax rebate comments and e-mails.

Visit The IRS Website For The Official Source Of Tax Rebate News and Updates

While I can't necessarily state that all answers that I provide are definitive, I do try my best to answer accurately based on research and reasonable information. One thing I have noticed is the vast amount of misinformation and speculation that is available on the internet. There seems to be much conjecture and rumors surrounding the tax rebate, particularly as it relates to timetable and the order that the checks will be sent out. I wish to remind readers that the only definitive source

By MoneyBlueBook

So you're thinking of opening a Roth IRA account? Congratulations! Although it's only one small step forward in sound financial planning, it's one giant leap towards building your financial future and saving for retirement. By now you've likely settled on which investment retirement account (IRA) vehicle is best for you. There are three major types - Roth IRA, deductible IRA, and the non deductible IRA. All offer tax deferral benefits but the retirement account that is most appropriate for the majority of ordinary individuals and married couples is the Roth IRA. Unlike traditional IRA's (both tax-deductible and non-deductible), Roth IRA's enjoy several great advantages and benefits which make them very attractive for those who want to invest and plan for their future retirement. Here is what every prospective Roth IRA investor and account holder should know: