Resources You Need to Know About Before Filing Your Taxes

Tax (Photo credit: 401K)So you've spent the last month dreading the thought of doing your tax return, but the day has come and you know it's time to get it over with. You sit down and pull up your tax software, and start answering questions. Name? check Address? check....Then, you run into that question that you're unsure about. It might be the number of deductions you can take, whether you are eligible for this credit, or how many business expenses you can claim. Whatever it is, you don't want to get it wrong and have the IRS come knocking at your door. But, you have other work that needs to get done, and you just want to get this damn tax return over with!


Here are three options you should consider that I've tried and tested over the years. Each one has its merits.

1. The free solution - The IRS actually offers a free helpline that you can call to get tax filing help. Since it's a free service (besides the 15 minute wait time), it doesn't hurt to try this one out. If you're lucky, you'll get in contact with an enrolled agent who can help you with your question. However, the help service is notoriously spotty, with a recent Washington Times study showing 3 out of 10 people who call the toll-free helpline won't get through to a human being, and those that do are often redirected to the IRS website.
2. The costly solution - Hiring a last-minute CPA or tax assistant to answer your question is also a popular solution (especially for business owners). However, beware that this costs anywhere from $100-200 per hour, and is limited to availability as the tax deadline approaches. The benefit here is you will be getting someone to do your taxes for you, whose job is to keep up to date with the current tax code.
3. The happy medium - There's a clever new website called Task.fm that offers a place where tax professionals will answer your personalized tax questions quickly for a set cost. For those of you with one-off questions that need to be answered, I would highly recommend looking into this. For an affordable rate (~$20), you get a certified CPA who will answer your question immediately. Not a bad deal if you ask me!

All said and done, what you're looking for is a quick, accurate, and affordable answer to your tax questions.


If you have the disposable income and are willing to pay for someone to do your taxes, hire a CPA (make sure you do your due diligence!).


If you are willing to do the gritty work of reading and understanding the tax code yourself, use the IRS helpline.


If you just want an answer quickly for an affordable rate, go to Task.fm. (Click here to bookmark).

Paying Taxes With A Credit Card Can Be Expensive

Tax (Photo credit: Images_of_Money)Your taxes are coming due and you do not have enough money to pay them. So you push the easy button and pull out your credit card. Sure Uncle Sam takes credit cards but did you know that there is going to be a processing fee tacked on to your transaction.

You are going to pay the fee that credit cards normally charge merchants to use the card. The government wants the total taxes due and is not going to eat the transaction cost. If your credit card provides a reward program or miles that cover the extra fees it may be worth it. But generally, with the high processing fee it just does not make sense to pay by credit card.

Credit card payments to the IRS are processed by third-party providers. These companies charge a processing fee, which averages 2.35% (as low as 1.89% through PayUSATaxes.com and as high as 3.93% charged by FileYourTaxes.com). The fee is a deductible business and individual expense.

For example if your tax bill is $8,000, a processing charge of 2.35% will cost $188 which will be added to your total transaction. So if you do not pay off your balance every month you will be paying interest on $8,188 as you slowly pay off your balance. Interest on top of fees makes the whole process, just not make sense.

Even if you pay off the entire balance, your rewards or miles probably will not offset the extra expense.

"Before charging your taxes on a credit card, check into installment options from the IRS, especially if your credit card has a high APR," says Bill Hardekopf, CEO of LowCards.com. "The IRS will charge interest, but it may be less than what you would pay with your credit card."

If you must use your credit card follow these tips:

• Make sure the transaction doesn't push you over your credit limit.
• Don't write your credit card info on your tax documents.
• Make sure your payment is treated as a purchase and not a balance transfer because the you will be paying higher interest and a balance transfer fee as high as 5%.
• You can't cancel payments to the I.R.S.
• If you can use your debit card than go to Pay1040.com, where they only charge a $3.89 fee.

If you pay your taxes by credit card because you do not have the money, it is an indication you are not managing your money properly. Do not let this happen again next year. Start putting away the tax payment little by little every month.

Where To Invest When Interest Rates Are Low

International Money Pile in Cash and Coins (Photo credit: epSos.de)Putting your money into a savings account is a safe way to protect your money. It is not, however, a great way to grow your money. Interest rates for savings accounts today average around one percent. This means you would get about a $1 in interest for every $100 you have in your savings account. Luckily, there are plenty of ways to invest your money if you want to continue growing your money.

Alternate #1: Invest In Gold

There is never a bad time to invest in gold. It is a commodity that is always going to increase in value. Gold provides you with a safe haven for your money today while growing your money for the future. Consider investing in gold if you are thinking about leaving some of your wealth behind for future generations. Selling your gold is also quite easy to do should you decide to liquidate that asset.

Alternate #2: Real Estate

Purchasing a home could be a great way to grow your wealth over the next decade or so. The key is to put enough down on the home to ensure that equity can be attained right away. Also consider where you are going to purchase the property. The housing market is going to vary depending on where you decide to buy. Finding a good home in a good location can result in an asset that will steadily grow in value over time.

Alternate #3: Find Works Of Art

An art collection can yield you some serious cash should you ever decide to sell. Fine art is always going to be in demand as collectors try to line their walls with classical pieces. A keen eye is needed to determine whether a particular art work is going to be valuable or not. Always have an appraisal done to determine the authenticity of the piece. Clever forgeries will make your piece almost worthless.

Alternate #4: Collecting Original Manuscripts

Holding an original copy of the Canterbury Tales would net you a massive sum of money on the open market. Original drafts by authors such as Stephen King would also be quite attractive if you were to ever sell his work. There is nothing more valuable than a piece that is not widely available to the general public. Be sure to authenticate everything before you try to sell it.

Alternate #5: Sports Memorabilia

The value of sports memorabilia tends to do nothing but go up over time. Having an autograph from Johnny Unitas is going to enhance the value of his trading card. Possessing a championship ring that was given to Kobe Bryant would be worth a small fortune if you could ever acquire it. Sporting goods stores are very popular across the country because almost anything sports related is quite valuable. Your decision to keep your baseball cards in pristine condition could really pay off in the long run.


Savings accounts are one way to make sure that your money is safely accounted for. However, there are many Alternate investments that you may want to look into. Putting your money into gold, art and sports memorabilia are fine ways to grow your money. You can feel secure that your money will last as long as you need it to.

Resources for Investing

• 10 Life Changing Books About Managing Your Money - CreditCardCompare.com.au 
• 5 Alternative Investments Worth Looking Into Now! - YouthfulInvestor.com 
• Alternative Investment News - Guardian.co.uk

With interest rates at historical lows in several developed countries, where have you been investing your money? Have you been investing in any other alternatives?

Second Careers Are Becoming A Trend For Boomers

Court Reporter tests his Stenomask (Photo credit: Wikipedia)Ask a Baby Boomer if age 65 is a finish line or a starting line and you will get an education about life. There are many things people can't understand about being self-reliant until you actually walk in their shoes. But earning a living and contributing to the community is important to boomers. Also because of the faulty retirement system and economic problems, boomers are also stepping up to fill in the financial gaps in their lives.

One such second career that is popular is a court reporter. Many people looking to have a second career and wanting to be in a stimulating, active work environment are choosing the court reporter career.

Of the 21,000 court reporters, over half work at federal, state or local government jobs, according to the U.S. Department of Labor. Projection data by the the U.S. Department of Labor states that by 2018 job growth will rise by 18 percent.

The median salary of court reporters is $57,200 and if you can type 200+ words a minute the average pay can be $105,000, according to Payscale.com. Beyond getting your certification, many factors are necessary for a court reporter to succeed in their job. Having good listening skills, knowledge of grammar, writing speed, and vocabulary skills are necessary.

Opportunities are available and educational costs are reasonable for a court reporter career. You can have a flexible schedule instead of the traditional 9 - 5 job. Having more freedom for yourself and still earning good money is what makes a second career great.

Are Gift Cards Good For Consumers?

Gift Card (Photo credit: 401K)

In a National Retail Federation survey, about 80 percent of shoppers expected to buy gift cards, while 58 percent of shoppers said their most requested present would be a gift card. The gift card has been the most popular choice for five straight years now.

The gift that has increased in popularity over the years is being forgotten more often as well. NPR reports that analyst Brian Riley of the Tower Group has estimated about $41 billion in money spent on gift cards has not been claimed since 2005. USA Today reported that accounting rules say gift card sales don’t count as income for stores until they are actually redeemed.

It helps to choose the right card for your gift recipient. But GiftCardRescue.com sells gift cards people don’t want and allows them to buy others at discounted rates. A company spokesman felt that consumers weren’t redeeming their cards right away due to the Credit Card Accountability Responsibility and Disclosure Act of 2009. According to USA Today, rules now say that expiration dates are limited to five years after purchase, and fees for non-use are prohibited until after the first year.

Even More places to get rid of that unwanted gift card.

• ABC Gift Cards allows users to buy, sell, or trade gift cards. They claim to be the largest secondary market for gift cards.
• Card Avenue has a very extensive inventory of cards for sale. Navigating the site is easy. If you want to trade a card, create a “wish list” of gift cards you would consider in exchange for your gift card. For example, if you have a $50 Pottery Barn card, but you would much rather have a $50 Victoria’s Secret or Macy’s card, then include those cards in your wish list. Other traders will browse the site, and if they have a Macy’s or Victoria’s Secret card and want your Pottery Barn gift card, you might be able to make the trade. The site receives a commission from the traders.
• Cardnap allows users to buy and sell a variety of popular gift cards.
• Cardpool features free shipping, and a 100-day guarantee, to ensure the gift cards are legitimate.
• CardsUWant is an auction site that lets sellers buy, sell, and trade gift cards. They collect a 5% fee, which is less than eBay.
• CardWoo is another service that buys and sells gift cards. They pay all shipping costs, but require that gift cards have a minimum $20 value.
• Cash4GiftCards.com buys gift cards for 75% of their value. They sometimes buy expired cards, for 25% of their pre-expiration value. GiftCardBin provides an initial offer on sellers’ gift cards, based on the retailer, value, and expiration date. If you don’t like their offer, you can make a counter offer.
• GiftCardGranny is another gift card buying and selling site. The site allows users to sign up for alerts and receive notification when cards from their favorite stores have been listed for sale.
• GiftCardRescue allows users to buy, sell, and exchange gift cards. This website offers an additional 5% over the redemption value if the card is exchanged for an Amazon gift card instead of cash. They also offer bankruptcy protection in the event that the retailer no longer accepts the gift cards.
• Plastic Jungle buys unwanted gift cards and will pay up to 92% of the face value of the card. Users have to enter gift card information on the site, and then Plastic Jungle makes an offer for the card. Sellers receive pre-paid shipping labels to mail gift cards to the website. Once the balance of the gift card is verified, the website pays for the gift card with a check or PayPal.

Obtain quotes from each of the websites to determine which site offers the best deal for the gift cards you want to sell or exchange. Make sure to read the websites’ terms and conditions, and learn more about their guarantees, transaction fees, and shipping policies. Gift card exchange websites are an excellent way to sell or trade gift cards from major retailers. If the gift card is for a small, local business, try selling or trading the gift card on Craigslist or eBay Classifieds instead.

Don’t let your unwanted gift cards sit around collecting dust. Make them work for you instead. If your Great Aunt Sue gave you a $100 Starbucks gift card and you don’t drink coffee, trade the card for a shop you do visit, or trade the card for cash. If you use Plastic Jungle to sell your $100 Starbucks gift card, they may pay you up to $92.00 for the card. 

Citi's Simplicity Card With 18 Months No Interest Balance Transfer

Does a credit card with no late fees, no annual fees, no penalty late payments and more sound good to you?

If you need a no non-sense 18 month no interest balance transfer, to use to pay off your high interest credit cards, then skip down to the bottom and apply.

The Citi Simplicity® Card is designed to give consumers an uncomplicated line of credit. It also allows card members to say goodbye to penalty fees for missing a payment due date, and hello to fast, person-to-person customer service!

The Citi Simplicity® Card features an excellent introductory APR period that gives you over a year without interest! As a cardholder, you'll enjoy 0% APR for 18 months on purchases and 0% APR on balance transfers for 18 months from the time you opened your card account!

After this introductory APR period expires, you'll enjoy a low, variable APR. This APR will NOT change if you're late making a payment, nor will you be charged any late-payment fees for missing a due date! This is just one of the many ways Citi is using the Simplicity® Card to make credit management easier.

The Citi Simplicity® Card also lets you do away with frustrating, automated voice recordings when you make a customer service call. Citi representatives are standing by 24/7, and you'll never have to sit and wait for your call to be answered. As a cardholder, just verify your account number and say “representative.” You'll be put right through!

There is no annual fee for the Citi Simplicity® Card either. This card is designed to simplify the credit process for those with excellent credit. With an 18-month 0% APR period, an APR that doesn't change if you miss a payment due date, and access to representatives who can answer your questions or concerns 24 hours a day, the Citi Simplicity® Card truly lives up to its name!

Here are All the goodies:

• Annual Fee $0.
• 0% Intro APR for 18 Months on Balance Transfers.
• 0% interest for 18 Months on Purchases.
• No late fees for making a late payment.
• no penalties for going over your credit limit.
• no wait-time for live help via telephone.

Also The Negatives:

• No rewards program.
• $35 fee for returned payment.

The bottom line is if you need an 18 month no interest balance transfer then this is the card you need. It doesn't get better than this.

Visit the Citi Simplicity® Card page to sign up and for more information.