Filing An Income Tax Return Extension Will Delay Your Tax Rebate Check

By MoneyBlueBook

It's that time of the year again and it's looming large. April 15, tax day - the day we take our hard earned money and pay our annual emperor's tribute to Uncle Sam and the United States government. For most working people, April 15 day is the deadline for filing our tax returns to claim the tax refunds that were withheld by the Internal Revenue Service (IRS) in excess for most of the year. This year is extra special since there's an extra bonus and incentive twist waiting for us. This year we have the 2008 economic stimulus stimulus rebate qualification to contend with.

The IRS has already stated that taxpayers who wish to receive their tax rebate payment in timely accordance with the official tax rebate payment schedule must file by April 15, 2008. Currently, the economic stimulus rebate will be issued according to the last two digits of the primary tax filer's Social Security Number. People who chose to receive their tax refunds via direct deposit will enjoy speedy priority and will be among the first to receive the payments starting May 2 and lasting until May 16. For those of you who chose the slower paper check option, your stimulus payment check won't get to you until the direct deposit crowd have gotten theirs. Paper checks won't be sent out until May 16, and lasting all the way into July 11.

How Do I Request An Extension To File My Federal Income Tax Return?

If for whatever reason you cannot file

By MoneyBlueBook

In the world of taxes and financial planning, the terms adjusted gross income (AGI) and modified adjusted gross income (modified AGI or MAGI) are particularly significant. They are frequently used to calculate and determine the extent of certain benefits and deductions. AGI in particular is used to determine qualification to take certain itemized deductions and used to calculate taxable income. It is also the key determinative factor to rebate payment under the 2008 economic stimulus tax package. Qualification for the stimulus payment is not based on salary or after-tax take home income, but rather on the taxpayer's total adjusted gross income, which is a terminology encompassing a broader range of income sources.

The term modified adjusted gross income is particularly important as well. It is used to determine qualification to take certain tax adjustments like the child tax credit and eligibility for certain education expense credits. Overwhelmingly though, the MAGI's significance is most commonly associated with tax deferred investment retirement accounts (IRA's). It is a key income factor in determining Roth IRA contribution limits and phaseouts, as well as qualification for IRA to Roth conversions. The higher the MAGI, the more the Roth IRA contribution limit is reduced and ultimately phased out. The MAGI term is often overlooked because the amount calculated in MAGI is often similar or even the same as the adjusted gross income for most ordinary tax situations.

For clarification, here are the income and deductions that comprise both the AGI and the MAGI:

1) Adjusted Gross Income (AGI) - is comprised of

By MoneyBlueBook

Updated IRA and Roth Contribution Tables For Tax Year 2009

Because of the power of compound interest, it is never too early to start saving for your future and planning your retirement nest egg. The earlier you start taking advantage of tax deferred investments, the more money you'll have to live on when retirement rolls around. Don't count on dying young to relieve you of the need to save either. Statistics show that improvements in medical technology and lifestyle changes, coupled with increased health awareness are extending our lives longer than before.

For the younger, single people out there, I know it can be strange discussing retirement so early on, but you must remember that your actions now have a huge impact on your future welfare. The cash you invest today in a tax deferred retirement account has a disproportionately more significant impact on your wealth level than money invested later. Don't delay or keep putting it off - even catch up contributions won't be much help if you wait too long to save for retirement.

When it comes to saving for retirement, there are a variety of tax deferred options such as the common employer sponsored 401K plan. But there is also the Traditional Investment Retirement Account (IRA) and the Roth IRA. Both are excellent ways to save for the future but you must be mindful of IRS rules when funding them - by being aware of the annual contribution limits, the contribution deadlines, and the applicable income phaseout ranges. I've created a list of

By MoneyBlueBook

Business credit cards have grown to become a commonly accepted and practical way for small startup businesses to acquire access to needed venture credit. Not only do they offer benefits unique to business office and supply demands such as higher credit lines, better credit card rewards, and more versatile expense tracking, they offer also the opportunity for growing businesses to build up their business credit history. This is important because one day the business may need to draw upon that developed business credit history to acquire corporate loans.

Individuals Can Apply For Business Credit Cards With Their Social Security Numbers

What many consumers seemingly overlook is that business credit card benefits can be available to them as well and are not reserved for complex business entities alone. Card applicants don't have to be part of a corporation or a limited liability company (LLC) to qualify. Ordinary individuals can go into business for themselves and establish their business operation as a sole proprietorship. If you are self employed, a freelance worker, or an independent contractor like myself, you may very well be operating as a sole proprietor already. In the eyes of the Internal Revenue Service (IRS), the government, and credit card companies, the individual and his or her sole proprietorship business are one and the same for legal and income tax purposes. The only significant difference is when it comes to record keeping and business tax deductions. As sole proprietorships are entitled to write off their business expenses against their income, most are encouraged to

By MoneyBlueBook

I used to sell products on eBay as a money making hobby and even once attempted to make a side business out of it. It wasn't easy trying to make profit while at the same time avoiding all the internet fraud and scams out there. While I eventually decided to pursue other ventures, I had a friend who continued to dabble in eBay auctions. Soon enough, he had successfully turned what started out as a one room operation to an impressive one man eBay business machine that engulfed his entire basement. Everytime I stopped by his house I was always startled at the sheer number of brand new Dell laptop and ThinkPad boxes stacked in piles throughout his basement that overflowed into his unoccupied garage.

Through his closely guarded network of online connections (he never disclosed them to me), he was able to secure excellent wholesale deals on hot electronics like laptops, desktop computers, and handheld PDA's for sale on eBay. His racket continued for several years to my continued amazement as I wondered how he managed to stay so consistently profitable despite rising eBay fees and heavy online competition. One day I finally turned to him and asked him if he was reporting his eBay earnings as taxable income on his federal income tax. He simply smiled and changed the subject. Obviously, the answer was no, thus exposing the secret to his profitable eBay success - tax evasion!

Frankly I don't really blame him for withholding his eBay profits from the

By MoneyBlueBook

When I went downstairs to the mailboxes to check my mail today, I discovered a letter in my slot with the ominous letters "IRS" and the trademark federal eagle logo stamped on it. My heart immediately skipped a beat. Was I being audited? But then I thought again - that wouldn't make any sense - I hadn't even filed my 2007 federal tax return yet.

I looked at the envelope more closely - the red lettering advertised the contents of the envelope as an important message from the IRS on the economics stimulus act of 2008 and implored me not to throw it away. Looks like I finally received one of those notorious notice letters that the IRS spent $42 million to issue. For $42 million you'd think the federal government would have been able to design a more conspicuously colored envelope rather than sticking with the traditional white junk mail design. If I hadn't examined the lettering closer I may have chucked it into the trash can like I instinctively do with most spammy mail pieces I receive.

If you want to know what the letter said, I've transcribed the entire content message below. It was a typical boiler plate form message. They didn't even bother to address the letter recipient by name. I'm simply referred to using the standard moniker - "Taxpayer".

Why the federal government and the IRS chose to spend so much money to send us this information is beyond me. Is this part of the economic stimulus plan - injecting precious taxpayer money