Tax Time Is Here!! Here Are a Few Deductions & Tax Credits Often Overlooked!!

A tax credit actually reduces your taxes, dollar for dollar, but a tax deduction just decreases your taxable income. It's easy to understand how someone could miss a tax deduction with the hundreds of conditions to be mulled through when trying to figure what you are entitled to.

For Starters one often missed item is, if you were among the approximately 10 percent of Americans who were jobless last year, you may have a tax deduction coming. Job hunting expenses can be deducted, provided your total miscellaneous itemized deductions are greater than 2 percent of your adjusted gross income. Such expenses could include the cost of printing resumes, food and cab fares. But the catch is that you must be looking for a job in the same field as when you last worked. If you move at least 50 miles, your moving costs can be deducted if associated with job placement. Expenses such as highway tolls and parking are included, and you may even claim 16 ½ cents per mile deduction.

The American Opportunity Tax credit allows for $2,500 of college tuition to be claimed as a credit. It covers all four years of school and the full credit may be claimed by single people who earn $80,000 or less, or by married couples who earn $160,000 or less.

If you make a contribution to a retirement account -- such as an IRA or a 401(k) -- you could be eligible for up to $1,000 in credit if you're single, and up to $2,000 for married couples. To qualify, single filers must make less than $27,750 and married couples, under $55,500. If you're going to claim this credit, you must be over 18, not a full-time student and cannot be claimed as a dependent by anyone else. The actual credit is based on your filing status, how much you contribute to your retirement account and how much you make. The more you contribute, the less you earn and the higher your credit will be. To claim this credit, you must complete Form 8880 – also known as the Credit for Qualified Retirement Savings Contributions. You can get the form, and instructions for calculating how large your credit will be from the IRS website.

Charitable donations also are often overlooked. Although you can deduct the value of items you donate to charity, you cannot deduct the value of any time or labor you may have given to a charity's project. You can also deduct 14 cents a mile for any driving you may have done for charitable work.

If you compile your own taxes annually it is a good idea to go to the IRS website which offers quite a bit of information on personal deductions and tax credit options you may qualify for. If with all the changes that have occured in the past few years you are unsure of any proceedures it is advisable to utilize a tax preparer that is a professional in this field to ensure you get your maximum return. Hopefully this Information has been helpful to my patrons and prompts you to look into your possibilities when filing your taxes.

Foreclosed? Credit Settlement? You may be Liable for some Taxation!!

It is IRS policy to tax forgiven debt you are personally responsible for as if it is income. Say, for example, your credit card company settled a $10,000 debt for 50 cents on the dollar. You'd have a debt forgiveness of $5,000, which the IRS would count just like your wages.

The same policy held true for most mortgage debt until 2007, when Congress passed the Mortgage Forgiveness Debt Relief Act. That ended the liability for many homeowners -- but not all.

In general, if you lose your home to foreclosure or short sale, where you sell your home for less than you owe, the IRS won't add insult to injury by counting the difference as income, at least until 2012, when the act expires.

There are four major exceptions to the rule:

1. You did a cash-out refinance and splurged.

Many homeowners took cash out when they refinanced their homes and used the extra dough to pay for new cars, boats, vacations or other spending.

Say you did that and then got into trouble, losing the house through a foreclosure or short sale. Even if your lender waived the remaining debt, the IRS will treat as income the portion of the forgiven debt that you took out as cash and spent.

Only the funds used to actually improve your home won't be taxed (plus the costs of refinancing the loan). Even if you spent the money on paying off your student loans or credit cards.

The IRS' reasoning is that only the money spent on home improvement actually added to your home's value. And that, presumably, diminished the difference between what you owed on your mortgage and the value of your home when it was foreclosed.

Beware: Some lenders made refinancing offers contingent on homeowners paying off credit card debt. If you took one of those deals, the refinance money will be reported to the IRS and you will owe taxes on it.

2. You have a home-equity line of credit.

The same rules that apply to refinancings also apply to home-equity loans: The IRS will only forgive the tax liability if the loan money was spent on home improvements. Be prepared to show receipts to prove it.

3. You lost your vacation home or investment property.

The market tanked and you lost your vacation home. Unfortunately, if you didn't use it as your primary residence for at least two of the previous five years, you're going to pay the tax.During the housing boom, buying homes for investment purposes soared, accounting for 28% of all sales during 2005, according to the National Association of Realtors. (Vacation homes made up 12%.) And many of these purchases were made with little down payment.The median price for investment properties fell nearly in half to $94,000 by 2010, according to NAR. For vacation homes, the median price paid dropped 26% to $150,000.

4. You owned a multi-million-dollar home.

Houses: What a million dollars buys, only the first $2 million in forgiven debt will be voided under the relief act; all the overage is taxable as income.

Other ways out - If the taxpayer was insolvent at the time of the foreclosure, the forgiven debt can be excluded for tax purposes. It can also be discharged in a bankruptcy and approved by court order.

Who Says A Guy Can't Cook - Awesome Slow Cooker Pot Roast

If you think the gals can beat us always at cooking a great meal guess again!! Impress your special person with a day off from the kitchen with this easy fix meal!


Ingredients
2 (10.75 ounce) cans condensed cream of mushroom soup
1 (1 ounce) package dry onion soup mix
1 1/4 cups water for the pot roast
5 1/2 pounds pot roast
1 can of potatoes (two if you like Taters)
1 can of carrots (heck make it two if you like 'em too)
2 cups of uncooked rice
4 cups of water for rice

Directions
1.In a slow cooker, mix cream of mushroom soup, dry onion soup mix and water. Place pot roast in slow cooker and coat with soup mixture.
2.Cook on Low setting for 8 to 9 hours.
3.When you get back in from your 8 hrs of working walk into a great smelling meal. Switch the crock pot over to warm & dump the taters & carrots in and let it marinate a little while, maybe 20 minutes at most.
4. While thats doing its thing, grab your trusty Rice cooker and dump in the rice & add the 4 cups of water w/a couple pinches of salt & a pat of butter. Press the start button and when it goes off the pot roast can be switched over can be shut off.

There you have it!! A guys meat, potatoes, & gravy dinner without all the fuss!! Go ahead show 'em what you got!! Oh almost forgot put them empty cans in the bottom of that garbage can covered up real good....who needs to know you didn't do that gravy from scratch? It'll be our little secret!! Sometimes a man's gotta do what a man's gotta do!!

What's Going to Happen if the Government Shuts Down on Mortgage Transactions????

Well we are facing changes again in the mortgage industry!! Suprise Suprise!! Presently the government is looking at actions that may bring things to a screeching halt for a period of time in regards to some of its past practices on what we have become accustomed to with the backing options they have offered to insure the American Dream of Home Ownership in reference to some of its programs. What could be some of the possibilities on these changes?? Here are a few for starters:

Tax transcript: If the IRS is on furlough, we will not be able to obtain tax transcripts.

Flood insurance: Borrowers may have difficulty obtaining flood insurance through FEMA during this period.

FHA: We understand that HUD may not support FHA Connection during their hiatus, and therefore case numbers may not be able to be ordered or perform other functions in FHA Connection while they are on furlough.

Rural Housing: It is uncertain on the impact to GUS since that system was created since the last shutdown in 1995. However, we should anticipate the system will not be available. In addition we will not be able to get conditional commitments during the shutdown.

VA: We should anticipate that the system by which VA appraisals are ordered will not be available.

If you are looking at buying with use of any of these programs it is highly recommended that you move quickly as the future is uncertain on the final decisions on many of these programs being interrupted. Keep your eyes opened for Articles in your local news papers & RSS news sites as there should be a lot of buzz on the details real soon! In the mean time move fast while you can!!

Great updated home Move In Ready!!

Nicely Updated Home-MOVE IN READY! Kitchen & Dining has new ceramic tile & Granite Coutertops-Updated Appliances. Custom Lght Fixtures & Ceiling Fans! All Bedrooms have recent paint & new carpet. Both Master & Guest Bath have New Marble Flooring w/cultured marble countertops and shower/tub surrounds & fresh paint. Spacious closets in guest rooms & walk-in in Mstr.Large Family room w/wood burning fireplace. Custom front door w/ceramic tile foyer. Roof is under 4yrs! Manacured lawn w/freshly mulched flowerbeds & plants & mature trees! Transferrable Termite Contract! Storage Building in addition to spacious storage room under carport. Fully fenced in Back Yard w/6ft. wood privacy fence. Seller will provide 1yr. Home Warranty. Great Family home Ideal for 1st time home-buyer!! Conveniently located near shopping centers, hospital, Library, Interstate, Restaurants, nurseries, & schools. This one won't last long so call today for your private showing at 225-293-6100. Want to see upwards of 36 pictures and a virtual tour of this property please copy & paste the web address provided below that will take you directly to the listing with mortgage calculator, pricing, and more!!

www.14326royaloakave.ejournee.com

Strawberry Festival Ponchatoula

Great family fun and lots of crafts and music and great foods made from strawberries and more! April 8th through 10th!

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