Some tax filers will have to wait to file

The new tax law just signed will create a delay for some taxpayers to file their returns.  If you itemize your deductions  or if you have the higher education tuition and fees deduction, or if you take the educator expenses deduction, you will need to wait to file your tax return until tax processing systems are ready, which the IRS estimates will be in mid- to late February.

Still probably a good idea to get all your stuff together and ready.

If you have any questions feel free to post them on this blog and I will get you an answer.

-Kathy

New rules (Better!) for gift cards

Seems like we all end up buying some gift cards during the holiday season.  There are some new rules for gift cards that are good for consumers.  The new rules went into effect on August 22, 2010. Here are the highlights, straight from the FTC website:

• Money on a gift card cannot expire for at least five years from the date the card was purchased, or from the last date any additional money was loaded onto the card. If the expiration date listed on the card is earlier than these dates, the money can be transferred to a replacement card at no cost.

• Inactivity fees can be charged only after a card hasn’t been used for at least one year, and you can be charged only once per month. But you may be charged a fee to buy the card or to replace a lost or stolen card.

• The expiration date of a card must be clearly disclosed on the card, and fees must be clearly disclosed on the card or its packaging. There is one exception: Some cards produced before April 1, 2010, that list a short expiration time or inactivity fees in the first year, can be sold through January 31, 2011. However, no matter what your card says, you still are protected by the new rules.

When you shop for a gift card, the FTC recommends that you:

• Buy from sources you know and trust. Avoid buying gift cards from online auction sites, because the cards may be counterfeit or may have been obtained fraudulently.

• Read the fine print before you buy. Is there a fee to buy the card? If you buy a card by phone or online, are there shipping and handling fees? If you don’t like the terms and conditions, buy elsewhere.

• See whether any fees will be deducted from the card after you purchase it.

• Inspect the card before you buy it. Verify that none of the protective stickers have been removed. Make sure that the codes on the back of the card haven’t been scratched off to reveal a PIN number. Report any damaged cards to the store selling the cards.

• Give the recipient your original receipt so they can verify the card’s purchase in case it is lost or stolen.

I would add that if you receive a gift card, that you use and enjoy it right away to reduce the risk of loss or forgetting about it!

-Kathy

Volunteer Mileage Rate for Tax Deduction

Lots of my friends do volunteer work.  If you are a volunteer who drives in connection with that work, you might be able to deduct mileage expense on your tax return.  If you itemize your deductions, you can include a mileage deduction in the charitable contributions section of Schedule A.  The deductible amount is 14 cents per charitable mile.  (Not much, but hey, every little bit helps, right?) You should document the mileage in writing (number of miles, dates, what purpose) in case you are ever audited.  You should ask a tax advisor if you have any questions. 
Feel free to contact me for more information.

Save money when ordering online

Lots of us order items online, especially now as we head into gift-buying season.  But before you place your order, do one thing that can save you 5%, 10%, free shipping or more!  Just google the name of the store and the words "coupon code" and see if you come up with anything.  Or visit a site like http://www.retailmenot.com/ and see if the store you are purchasing from is listed.  Lots of times you'll find a code that you then enter when you place your online order.  Sometimes, just by joining the company's e-mail list, they'll send you a code for a percentage off your order.  I set up a special e-mail address through g-mail that I use exclusively for promos and offers, so I don't mix those up with my day-to-day e-mails.  I just ordered a set of adorable bowls from http://www.laprimashops.com/ and got 5% off my order.  Hey, every little bit helps!
BTW, will post about online ordering safety in an upcoming blog. 
Please post your success stories about discounts!

Scam Alert: Fake IRS e-mails

Be careful of fake IRS e-mails - there are many different schemes and you may end up with an e-mail in your inbox from a sender posing as the IRS. The fact is, the IRS never initiates taxpayer communications via e-mail.  So if it looks like the IRS has a refund for you if you just clink on a link, don't do it.  It directs you to a website for additional information. The website contains malware that will attempt to infect your computer.  If you receive a message claiming to be from the IRS, please:

Do not reply to the sender, access links on the site or submit any information to them.
You may wish to forward the message as-is immediately to the IRS at phishing@irs.gov.

Several of my frineds and clients have received these bogus e-mails, so be careful.  If you get something that you're not sure of, please feel free to call me if you want me to take a look at it.

Has anyone gotten any of these?

-Kathy

This strategy works! Thanks Mike P. !

Got a great strategy from a friend, Mike P.  Here's what he shared with me:

Here's a suggestion on how to save money:
bitching and moaning. I took the Acura to Crown Acura to have the
transmission checked - it was acting up. They told me that I needed a
new one to the tune of $4500+. After they revived me I began to bitch
about it. To my surprise, the service manager fired off an e-mail to
corporate headquarters requesting some relief of the situation. As
background, this transmission was known to have issues, to the point of
losing a class action suit some years ago. Several hours later the guy
called me to say that the company had agreed to foot 90% of the bill.
After recovering from another fainting spell, I thanked him profusely.

Moral: Sometimes bitching and moaning actually are effective.

Mike.

Great job, Mike! Kind of old school but definitely worth a try in many situations.
It costs nothing to ask for a break or a discount or an upgrade or
a refund.....you may get what you want!

Anyone have a success story like Mike's?  Please post it and share!

Kathy

"Opt-In" sounds so nice, but don't do it

Banks act like they are doing us a big favor by paying for checks and debits when our accounts are overdrawn.  But they really aren't, they are charging ridiculous fees for doing that, on average $35 and more per item.  A simple timing error or occasional mistake that causes your checking account to be overdrawn briefly can cost hundreds of dollars in fees! 
Congress realized that and enacted a law that requires banks and financial institutions to have its customers "opt-in" to their overdraft plan.  The banks recently sent out messages and letters to their customers offering them the chance to "opt-in" to the plan -- sounds nice but really that "opt-in" gives them your permission to charge you those crazy fees.
So if you are asked to "opt-in", don't. If you already did, change it.  You can protect yourself from overdrafts by setting up an automatic transfer from a savings account.  Transfers usually cost $10 per transfer (a lot less than $35 per item paid!).  Or you can set up a free credit card at your bank that is to be charged in the event your checking account is overdrawn and needs funds in it to pay for items trying to clear.  Usually there is no fee to keep the card, and it is charged a fee of $10 or so if it has to be used to cover.  Check with your bank to see what options you have.