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November 2010: Taxes 24/7/365
October 2010: Changing Seasons, Changing Prices
September 2010: Go Back to School With Quickbooks' Educational Tools
August 2010: Take a Vacation From Long-Term Financial Concerns: Use QuickBooks' Budgeting Tools
July 2010: Declare Your Independence From Security Worries: Use QuickBooks' Protection Tools
June 2010: Hiring Summer Employees? QuickBooks Can Track Their Time
May 2010: School's Almost Out: Teach Yourself Better Reporting
April 2010: The Post-Tax Blues: How to Accelerate Receivables
March 2010: Spring Cleaning: Personalize and Tidy up your QuickBooks Desktop
February 2010: Get QuickBooks Ready for Tax Preparation
January 2010: Save Time and Reduce Mistakes by Synchronizing Your Data
Monthly Client Newsletter | January 2010
T he ringing in of the new year means planning ahead for filing your tax return and setting goals for the upcoming year. While you consider your situation, please take a minute to review this month's articles.
Contents
2010 Taxes
A Sneak Peek at 2010 Tax Rates
While the only thing certain about Federal Income Taxes in 2010 is that the Government is going to change many of the rules, it is still helpful to take an early look at the new 2010 Tax Rates.
Topline: Most of the cost of living adjustments are minimal to non-existent for 2010. This means many of the basic amounts remain unchanged from 2009.
Invest in 'Their' Future
Tips to Teach Your Kids About Money
As we continue to recover from the recession, Americans of all ages are learning more about the importance of sound money management. Why not consider setting a 2010 goal to empower your children to learn more about financial responsibility? Here are some tips to help teach your kids about money:
Start Them Young: Children can understand basic concepts regarding money even before they learn to count. Introduce them to money by showing them the different denominations and have them help you count out change.
Discuss Your Money Values: As children grow older, discuss your financial situation. Where does your money come from? How do you spend your money? How much do you save? How do you use credit cards? Tell them about the importance of saving before spending and discuss the differences between wants and needs. This practice will help transfer your financial values to your children.
Consider an Allowance: Giving kids an allowance can be an effective teaching tool. For example, give $3 as 3 $1 bills and encourage your child to put one dollar in a savings account, set aside one dollar for spending, and place one dollar in a giving jar to promote charitable donations.
Set Goals: When your kids want something, have them set a goal and help save money to purchase the desired item. Setting and working toward financial goals helps children develop responsible spending habits and promotes self-confidence.
Explain the Concept of Interest: Consider giving kids interest for the money they save at home and charging them interest on money they borrow from you.
Keep Records: Look for ways to have your children keep track of their money. Make a simple thermometer picture that gets filled up as they save for a large purchase. Work with your older children to develop a simple system to keep track of their spending. It can be as simple as keeping 12 envelopes, one for each month, and encouraging your child to keep notes and receipts for each month.
Financial Basics: For teenagers, do not assume their school will teach them good financial skills. Make sure your child can balance a checkbook, read a credit card statement, make change, calculate their net worth and understand other basic financial concepts.
2010 Mileage Rates
Reduce Tax-Time Stress!
Start Collecting Your Tax Records Now
Towards the end of this month you will start receiving the paperwork necessary to file your income taxes. What should you keep? Here is a checklist of some common items needed at tax time:
Income
W-2s
1099s for miscellaneous income
Proof of alimony
Interest and dividend income statements
Social Security (1099-SSA) and pension income statements
Retirement plan distributions (1099-R) for contributions, distributions, and rollovers
Brokerage statements (1099-B)
Profit/loss K-1 statements from partnerships, trusts, and small business
Proof of other income (jury duty, child support, etc.)
Income/expense from rental properties, self-employment, and hobbies
Deductions
Real estate tax documents
Expenses: moving, education, child-care, mortgage and student interest, IRA contributions
Charitable donations (cash and non-cash) receipts
Health care expenses
Casualty and theft loss documentation
Un-reimbursed employee expenses
Receipts for qualified energy efficiency purchases
Documents for the purchase, sale, or refinance of your home
Motor vehicle registration receipts
Gambling profit and losses documentation
Mileage logs for business, moving, medical, and charitable travel
Job related expenses
Other
Cost information for any investment or property sale
Full information on any dependents (DOB, age, any income, etc.)
Education information for all qualifying family members
Review all checking account and credit card statements for deductions
Identify any estimated tax payments made during the year
Copies of any tax refunds
Year-end payroll check stub
Recap of any gifts received or given in excess of $13,000
New Year, New Plan
Start the New Year With a Plan to Become More Financially Secure
Along with your 2010 resolutions to exercise more and eat less, why not resolve to have a more financially secure year for yourself and your family? A recent study found that families with a financial plan in place felt more secure, more optimistic about their future, and more confident in their ability to save for retirement.
Create a financial plan for your family by following these steps:
Set Goals. What do you need to feel financially secure or fulfilled? Financial goals may include buying a home, saving for an emergency fund, paying off credit card debt, saving for retirement, or saving for your children's college tuition.
Prioritize. Prioritize your goals to ensure that top priorities are provided for before pursuing less important goals. For example, paying off credit card debt may mean waiting to purchase a house. Try to focus on goals that make you feel most secure, benefit most members of your family, or will cause the most harm if they are deferred.
Budget. Finally, look carefully at how your family spends money. Are you working toward your goals or moving further away from them? A good rule is to aim to spend less than 90% of your household income, with the remaining 10% dedicated to achieving your financial goals. By examining your spending habits closely, you should be able to find ways to cut back. Pay attention to larger purchases and expenses. Is a bigger house worth delaying your retirement? If you can, reduce or delay large purchases and focus instead on achieving your goals.
As a final thought, don't hesitatate to ask for help developing your plan. For most of us, knowing that you have a plan and are sticking to it will make you happier in the long-run.
Please contact us with any questions.
- Posted on: 12/06/2009