by nate on Thursday, January 21st, 2010 | Business, News | No Comments

Our heartbeat is normally raised during the tax seasons. Some are expecting it because they would get a refund for a family, but some really hate this season since they worry that they would need to pay to the IRS.

This year, the question is different:

Do you like lending money to the IRS? The answer is yes for three-quarters of taxpayers.
Every year, about 75% of us overpay our taxes. By quite a lot. In fact, the average tax refund last year was around $2,400, which amounts to $200 a month lining Uncle Sam’s pockets until he pays it back to you … without interest.

If you hit the refund jackpot last April (or already know that you’re getting a refund this year), then it’s time to give yourself a raise, starting with your next paycheck.

Pad your paycheck with an extra $200 a month
Let’s get to the details so you can start seeing the fruits of today’s Fiscal Fitness tip ASAP.

To complete this task, you’ll need:

• Your most recent pay stub
• Last year’s income tax return
• A fresh Form W-4 from your employer, or download one from the IRS website

The idea here is to increase the number of exemptions you take while avoiding underpaying. To nail the number, use the IRS’ withholding calculator . The Form W-4 Assistant calculator at PaycheckCity can also help you.

How much is each exemption worth? Well, generalizations and taxes are a potentially lethal cocktail, but if you thrive on rules-of-thumb, figure that each exemption equals about $850 in tax.

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Tags: budget, budgeting, extra cash, extra money, finance, fiscal fitness, irs, lending money, motley fool, paycheck, resolutions, saving, spending, tax refund, Taxes, two-hundred-dollars extra cash, w-4, withholding

by wildcherry on Friday, October 30th, 2009 | Life, Tips | No Comments

Here’s some info to get the first time homebuyer tax credit:

• A first time home buyer is that person who has not owned a home for the past three years preceding the purchase of a home. This applies to married couples as well. This is to say that if your spouse has owned a home previously in the past three years, then you do not qualify as a first-time home buyer.
• The amount for which a first time home buyer can qualify is simply 10% of the value of the home to be bought and it does not exceed $8000. There are also some other criteria that are put into consideration to determine whether one will be approved for the tax income. This is the income level. Single persons must not be earning more than $75,000 while the limit for married persons is $150,000.
• You have to be intending to live in the house you buy to qualify for this credit and have to buy said residence between January 1, 2009 and December 1, 2009.
• There are income limits to this tax credit. If you earn more than 75,000 a year for singles or 150,000 a year for couples, you cannot qualify for the full credit. There is some leeway of 20,000 for people who earn a bit more than the above amounts and you may qualify for
• The credit must be paid back, but you have 15 years to do so. In the meantime, it will not be accruing any interest charges or late fees.  a partial credit if this is your case.
• To apply for the tax credit, you should fill out an IRS form 5405. The amount you qualify for will then be determined and you can claim for it on line 69, which is part and parcel of the tax form. This is the only form you will be required to fill and as you do so, you must be sure that the purchase is complete, otherwise you will be disqualified.

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