Employers are required to send W-2 wage statements to their employees no later than January 31 of each year. Many employers send W-2s earlier (some by a couple of weeks) in order to allow employees to complete their tax return as early as possible. That W-2 is critical to completing your tax return … without it you’re sunk. But what if you don’t receive yours on time? What if you’re hearing your co-workers talk about completing their tax return and you’re still waiting on that uniquely shaped envelope that contains your W-2?

What to do if you are missing your W-2

If the January 31st deadline passes and you still haven’t received your W-2 from your employer, take these steps:

1. Ask your employer or employers when the W-2 was mailed. If it was mailed, it may have been returned due to an incorrect or incomplete address. After contacting your employer, allow a week to ten days for the W-2 to be resent and go through the mail system.

2. Ask your employer if the W-2 can be reprinted while you wait. One year mine didn’t arrive on time and our payroll clerk simply printed one for me on the spot. Another alternative is to ask if it can be emailed to you as a PDF.

TurboTax vs H&R Block: which one is better?

3. Call the IRS for help. If your employer claims to have sent your W-2 and cannot reprint it or email it and you still haven’t received your W-2 by February 14, call the IRS at 800-829-1040. When you call, you’ll need to provide:

• Personally identifiable information such as your SSN
• An estimate of the wages you earned
• The amount of federal income tax withheld during the year
• The dates you worked for that employer during the tax year

This information should be based on the year-to-date numbers from your final pay stub for the year or your leave-and-earnings statement if you are no longer employed with this employer.

4. REMEMBER! You still must file your tax return or request an extension to file by the deadline, even if you do not receive your W-2. If you have not received your W-2 by the tax due date, and have completed steps 1 and 2, you may use Form 4852, Substitute for Form W-2, Wage and Tax Statement. Attach Form 4852 to your return, estimating income and withholding taxes as accurately as possible. Understand that any refund you’re owed may be delayed while the information you provided is verified.

5. You may have to amend your return. If you may receive your missing W-2 after you filed your return using Form 4852, and the information may be different from what you reported on your return. If this happens, you must amend your return by filing a Form 1040X, Amended U.S. Individual Income Tax Return.

Have you received your W-2?

Links to products or services may be affiliate links. See my disclosure policy on the site or on my About page.

source: Mandi Ehman

Our weekends just got a little busier as the girls start gymnastics each Saturday! But they’re so excited, and my hope for them is that they’ll be able to do a cartwheel since I never could (ha!).

I’m hoping this weekend will also include some downtime to just sit and relax (and read!).  We’ll see…

Here are some of my favorite posts from this week. As always, check out what I’m reading to see the other posts that make me stop and think. You’ll find new posts all week long!

Looking for Valentines to support a good cause? My friend Katie and her family are currently in Colombia picking up their new daughter, and they’ve got some adorable printable Valentines available to help them cover some unexpected expenses of their 4-6 week stay. Check ‘em out here.

Motherhood {Love & Marriage}

• How to Feed Your Marriage | Project Happily Ever After

• In a Rut? Spice It Up. | The Finer Things in Life

• How to {Make} Love {into a marriage} | A Holy Experience

Food {On the Menu This Week}

• Cinnamon Thyme Chicken | The Plan to Eat Blog

• Apple Cinnamon Glazed Sweet Potatoes | Saving and Giving

• Banana Pudding | Southern Living

Success {I Think, Therefore I Am}

• Qualifications | The Art of Non-Conformity

• 3 Actions You Can Take Now to Shift Your Emotional State | Michael Hyatt

Have a great weekend!

Weekend Reading: February 4, 2012 is a post from Life...Your Way

© 2010-2012 Purple Martin Press, LLC | All rights reserved - This feed is provided for the convenience of Life...Your Way subscribers. Any reproduction of the content within this feed is strictly prohibited. If you are reading this content elsewhere, please send an email to contact@yourway.net to let us know. Thanks.

The $75 sign up bonus from Chase has one of the lowest amount of spending requirements we’ve seen in awhile.

How to Get Your $75 Statement Credit

1. Apply for the Chase Slate card.
2. Use the card to spend $300 within 3 months.
3. After 6-8 weeks, you’ll see a $75 statement credit on your account!

Chase Terms and Conditions

• No annual fee.
• One-time bonus offer & valid only for first-time cardmembers with new accounts.
• Previous and existing cardmembers/accounts are not eligible.

More on Chase

0% Intro APR. For those with good credit, Chase is offering a 0% intro APR for 15 months on purchases and balance transfers. For those with average credit, there is 6-month 0% intro APR offer. However, remember the balance transfer offer has a 3% fee.

Chase Blueprint. The Slate card offers Chase Blueprint, a unique set of features that can help you avoid interest, pay off balances faster and see spending trends at a glance.

Click here to leave a comment on this article.
© My Dollar Plan

The quickest way to sabotage your personal finances is to make lousy decisions with your money.  Whether you made one big bad money move, or several smaller ones, it’s important to step back, look at what went wrong, and then follow these tips for making smart decisions in the future:

Give yourself some time.

It’s easy to make a mistake when you’re feeling rushed. So, give yourself some time to consider your expenditure. By giving yourself a little time, you’ll be better able to process the emotions of your financial decision.  Sometimes we’re pressed into making decisions when a loved one dies or we receive an unexpected windfall.  But there’s usually no harm in giving yourself a bit of time to process your feelings and determine the best course of action.

Do your homework.

You can avoid a lot of heartache if you spend a little time doing research.  That means reading contracts before you sign, visiting the neighborhood at different times of day before you buy that house, or asking friends who they recommend for plumbers.   Do some research on the internet to find potential solutions and money-saving ideas, talk to the experts in the field, and bounce your ideas off trusted friends and family members.  The more information you know, the less opportunity there is for a money-sucking surprise.

How to Make Smart Financial Decisions is a post from Life...Your Way

© 2010-2012 Purple Martin Press, LLC | All rights reserved - This feed is provided for the convenience of Life...Your Way subscribers. Any reproduction of the content within this feed is strictly prohibited. If you are reading this content elsewhere, please send an email to contact@yourway.net to let us know. Thanks.

One tough nut in every family is the dreaded CHORE word!  I help so many moms to come up with ways to uniquely implement a successful chore system in in their home – but there are several components that are universal for parents to consider.

Below are a few highlighted tips covered in one of my most popular Blog Talk Radio Episodes on Chores.  The audio is packed with good information and is just at 15 minutes – so grab a basket of laundry or a cup of coffee and listen in.  I would love for you to share your own tips on how you have successfully handled chores in your home too – please leave a comment for other moms.

Consider these areas when considering how a chore system will flow in your home.

Evaluate

You will want to consider the ages of your children, their current abilities and development as well as what areas you would like to see them challenged in.  Chores are a way of helping build life skills in our children, so find ways to challenge them a bit out of their comfort zone too.

Expectations

Clear, concise and consistent expectations will help tremendously in the success of any chore system in your home.  Decide on daily and weekly chores, post them clearly, have a deadline for completion and do not NAG to get chores completed.

Coordinator

It is often very helpful to have one person “in charge” of chores in your home.  On person to “inspect” to make sure chores are accomplished both correctly and on time.  Also, their is no difference of expectation on how a task should be completed if you have different people sharing this responsibility.  How I think a bathroom should be cleaned may not be how my husband thinks it should be, so it could become very confusing for my child.

Rotate

Give children the opportunity to change chores.  Rotate tasks between children and even go so far as to ask them what chores they like doing.  Giving them an opportunity to have a say in what actually happens tends to provide more inspiration to comply.

If you are wondering what chores to start with in your home, consider some of the tasks found in the Weekly Household Planner, many of these are perfect for you to delegate to little ones and NOT so little ones!

Photo Credit

Practical Tips for Kids Chores is a post from: The Confident Mom

Have you signed up for - "The Opening Act - Becoming a Calm, Cool and Confident Mom."

Have you crashed and burned on your goals for the New Year?

Over a third of the people who set resolutions have given up on them after just one month according to Statistic Brain.  That’s sad.  I mean people set goals to lose weight, get organized, spend less, break bad habits and enjoy life more.  I want them to succeed.

How are you doing on your resolutions?  Maybe you haven’t forgotten them yet, but maybe you aren’t making the progress you really want either.

Get Back Up to Speed on Your Resolutions

Since we are at that one month point, I thought I’d share some strategies to help you experience more success with your resolutions.  A big part of what it takes to reach a goal is going about it in the right way.  A bad plan will almost certainly lead to disaster.

Here are three ways you can repair and recover your resolutions:

1.  Focus

I’ve found that the single most important thing you can do to increase your chance of reaching a goal is to focus.  Dave Ramsey says, you have to become “gazelle intense”.  To escape certain death when being pursued by a cheetah, a gazelle must use extreme and intense focus.  Nothing can distract it from the task at hand.  The gazelle must give 110%.  It cannot falter or make a mistake if it wants to survive.

You can apply gazelle intensity to any goal.  You begin by focusing on one goal at a time.  Often, we make a list of goals and try to tackle them all at once.  This divides our attention, resources and resolve which greatly impedes our probability of success.  Instead, pick your highest priority goal, the one that will give you the most bang for your buck, and attack it with all your might.  Get radical on it!  Go to extremes to achieve this ultra-important goal.  Your intense focus on this one thing will lead you to victory.

2.  Break It Into Manageable Chunks

We make the mistake of setting goals that are too big.  Losing weight is the most common New Year’s resolution.  You may know that ideally you need to lose 100 pounds.  That’s a great long-term goal, but it is too big and daunting out of the gate.  You need to break it up into smaller, more manageable chunks.  For example, you should target losing five pounds the first month.  When you accomplish this, you’ll feel more empowered and you can then set your goal for the next month.  You stack these mini-successes on top of each other and before you know it, you’ll have lost your 100 pounds.

Doing your research and being realistic about what is possible helps tremendously.  If you exceed your first milestone goal, no problem, you can increase your goal for next month.  But, if you set too big of a goal, then you will likely become discouraged quickly.  You need those small wins to stay motivated and to keep your emotions on track.  This is a huge part of what it takes to achieve a long-term goal.

3.  Expect Failure

Finally, I suggest that you expect failure from the beginning.  What I mean is that you should anticipate some setbacks along the way.  The path to success is rarely a straight line.  Those that reach their goals know this little secret.  They don’t get demoralized and quit when they experience a setback or a roadblock.  You have to persevere if you want to reach your goals.  Therefore, you should expect some failure along the way.  By preparing for some disappointment up front, you minimize the chance of giving up.  Those that stick to their goals through thick and thin are much more likely to succeed.

When a stumbling block appears on your path, you simply make an adjustment.  You may need to adjust your tactics, your attitude or your milestone goal.  This is not taking the easy way out.  It is being flexible.  Of course, you can’t use this as a crutch, you must be willing to compromise, but you can’t be forever soft on yourself.  Learn from your mistakes and use them to catapult you to greater success.  Expecting a certain amount of failure in your journey toward your goals is essential to staying committed.

Recover and Repair Your Resolutions

I’ll ask again, “How are your resolutions going?”  If they need repairing, use the tips above to get things back on track.  You may have already strayed from the course, but that doesn’t mean that you have to give up.  Your goal is still before you.  You can pick up right where you left off.  It is just a matter of getting focused, breaking it down into chunks and expecting a little failure.  I wish you the best!

Photo: Copyright PhotoXpress.com

© My Super-Charged Life, 2012. | Permalink | One comment | Add to del.icio.us

The new refinance plan is supposed to save homeowners an average of $3,000 per year by helping homeowners take advantage of the current, low mortgage rates.

The new Obama refinance program will be for homeowners previously not covered by the making home affordable program: homeowners who are current on their payments, but can’t finance because they are underwater or have a loan not owned by Fannie Mae or Freddie Mac.

Responsible Homeowner Refinance Plan

Here are some of the highlights of the refinance plan from the fact sheet released by the White House:

The refinancing program will be open to all non-GSE borrowers with standard (non-jumbo) loans who have been keeping up with their mortgage payments. The program will be operated through the FHA.

Simple and straightforward eligibility criteria: Any borrower with a loan that is not currently guaranteed by the GSEs can qualify if they meet the following criteria:

• They are current on their mortgage: Borrowers will need to have been current on their loan for the past 6 months and have missed no more than one payment in the 6 months prior.
• They meet a minimum credit score. Borrowers must have a current FICO score of 580 to be eligible. Approximately 9 in 10 borrowers have a credit score adequate to meet that requirement
• They have a loan that is no larger than the current FHA conforming loan limits in their area: Currently, FHA limits vary geographically with the median area home price – set at $271,050 in lowest cost areas and as high as $729,750 in the highest cost areas
• The loan they are refinancing is for a single family, owner-occupied principal residence. This will ensure that the program is focused on responsible homeowners trying to stay in their homes.

In addition, borrowers won’t have to submit a new appraisal or tax returns. Eligibility will be based only on the banks confirming employment.

Underwater loans will be eligible, but the LTV doesn’t appear to be set yet:

The Administration will work with Congress to establish risk-mitigation measures which could include requiring lenders interested in refinancing deeply underwater loans (e.g. greater than 140 LTV) to write down the balance of these loans before they qualify.

Now the plan must get approval from Congress…

Click here to leave a comment on this article.
© My Dollar Plan

Though most people who prepare tax returns are professionals and render correct, honest, thoughtful and excellent service to their tax return clients, some DO occasionally make a basic math error of miss a deduction. Those aren’t the people you need to beware of. No, I’m talking about the fly-by-night types that engage in fraud and other illegal activities. These scammers set up shop one day and are gone a few weeks later. When the unsuspecting tax filer discovers their mistakes and fraud, these guys are no where to be found.

Dishonest tax return preparers can cause big trouble for taxpayers who fall victim to their ploys because regardless who prepared the tax return, the taxpayer is still responsible.

How do these tax scammers make their money?

1. Skimming a portion of their clients’ refunds by charging the client a percentage of their tax refund as a fee. The higher the refund, the higher the fee.
2. Charging inflated fees for less than stellar tax return preparation.
3. Flat out false promises of refunds or tax deductions.
4. Identity theft. These scammers have everything they need to steal and/or sell your identity (adding insult to injury).

Choose your tax professional carefully

Federal courts have issued hundreds of injunctions ordering individuals to cease preparing returns, and the Department of Justice has pending complaints against dozens of others. To increase taxpayer confidence in the tax system and improve compliance with the tax law, the IRS has implemented a number of requirements for paid tax preparers, including registration with the IRS, as well as competency tests and ongoing continuing professional education. The new regulations require paid tax preparers (including attorneys, CPAs, and enrolled agents) to apply for a Preparer Tax Identification Number (PTIN) before preparing any federal tax returns.

Start your taxes for FREE with TurboTax and pay only after you file!

While higher standards for the tax preparer community will result in greater compliance with tax laws, increase confidence in the tax system and ultimately lead to a better experience for taxpayers, it all comes at a cost and those costs are bound to be passed along to the tax filer.

Filing false or misleading tax forms

IRS personnel report cases where scam artists file false or misleading returns to claim refunds to which they themselves are not entitled. In one variation of this scheme, a taxpayer seeks a refund by fabricating an information return and falsely claiming the corresponding amount as withholding. Phony information returns, such as a Form 1099 Original Issue Discount (OID), which claims false withholding credits, are usually used to legitimize erroneous refund claims.

Another version of the scheme is based on the bogus theory that the federal government maintains secret accounts for its citizens and that taxpayers can gain access to funds in those accounts by issuing 1099-OID forms to their creditors, including the IRS. The IRS continues to see cases where people file false or fraudulent tax returns to try to obtain improper tax refunds.

The IRS takes refund fraud seriously, has programs to aggressively combat it and stops the vast majority of incorrect refunds. Because scammers often use information from family or friends in filing false or fraudulent returns, beware of requests for such data. Don’t fall prey to people who encourage you to claim deductions or credits you are not entitled to or willingly allow others to use your information to file false returns. If you are a party to such schemes, you could be liable for financial penalties or even worse, face criminal prosecution.

How to avoid being scammed

First, make sure you thoroughly check out anyone you’re considering as a tax preparer. Ask them for their PTIN and ask about their testing and professional education.

Second, unless you have a severely complicated return, do your taxes yourself. TurboTax is my tax preparation software of choice and H&R Block is another one that’s very good as well (I used them for 14 years before switching to TurboTax). TurboTax is exceptionally easy and with the proper documentation, I believe my 12 year old son could do my taxes. The software is THAT EASY!

So give it a shot and try TurboTax. You don’t even have to pay anything unless you actually file!

Try TurboTax for FREE!

Links to products or services may be affiliate links. See my disclosure policy on the site or on my About page.

But honestly, for many people, this can be the most stress-inducing time of the year as their tables become covered with numbered forms like 1040s and 1099s. Thanks to a dizzying array of deductions, credits and exceptions, navigating the tax code, rules and regulations can be very frustrating.

Of course, the terminology of even basic concepts can be difficult to grasp. For instance, consider income, something that most people believe is easy to calculate. However, the Internal Revenue Service has a variety of definitions with respect to income, such gross income, total income, adjusted gross income and modified adjusted gross income. It would be a joke if it were not so serious. And believe it or not, we still didn’t even mention taxable income, the definition actually used to calculate tax!

Thankfully these terms are not as intimidating as they may first appear. Let’s walk through income as it relates to filing your tax return. And for simplicity let’s skip the official IRS definitions of income; I’ll do my best to explain them in regular words!

Definitions of Income for Your Tax Return

1. Gross Income: Gross income, is the term most people would associate with income: the total amount of money a person earned in a given year. Among other things, this includes salaries, wages, tips, interest and dividends. Your gross income is the money you earn at your job before all of the deductions on your paycheck. For example, if you work at a job and are offered a $50,000 salary, which is referred to as your gross income.
2. Total Income: When you begin filling out your tax return, contrary to popular belief, you do not start with your gross income. In our example, if you have a job where you earn $50,000 gross, but you put $5,000 into your 401k, you’ll actually report only $45,000 of total income for your salary. Luckily, your employer will help you compute this by issuing you a W2 form. Box 1 on your W2 will have the correct amount of total income for your job. In addition, you’ll get 1099s to help you determine the rest of your total income.
3. Adjusted Gross Income: However very few people will actually pay taxes based on the amount of total income they have earned. This is because there are a variety of deductions you can take in order to reduce your income. This is just what adjusted gross income (AGI) specifies: the amount of gross income after adjustments. Although this can be a complicated chore, it does reduce your total tax burden. Some adjustments that are normally used to calculate adjusted gross income include business expenses, education costs and IRA contributions. In our example, if you paid $1,000 in student loan interest, your AGI would be $44,000. You can see more adjustments in the AGI adjustment list.
4. Modified Adjusted Gross Income: With AGI out of the way, we can now calculate modified adjusted gross income. Modified adjusted gross income (MAGI) is used to determine your eligibility for contributions to tax advantaged accounts, such as IRAs. The contribution limits for Roth IRAs and the deduction for traditional IRAs are both based on MAGI. To calculate your MAGI, you’ll need to add back in various deductions to your AGI including the student loan interest we deducted earlier.
5. Taxable Income: Once you determine your gross income, then calculate the total income to be reported for taxes, make adjustments to get your AGI, and finally determine your MAGI to make your retirement contributions, we’ll begin working on taxable income. To get your taxable income, you need to subtract your deductions (standard or itemized) and exemptions from your AGI. Once you know your taxable income, you can use the tax brackets to calculate your tax due. Of course, it won’t be the final amount you’ll pay, as you can still deduct your tax credits.

Hopefully, the definitions of income aren’t as scary as they look! I always think it’s easier to define various terms when we walk through an example to link each definition to the next one.

Click here to leave a comment on this article.
© My Dollar Plan

Our Infographic takes a look at some of the statistics about preventable diseases over the last few decades in the US, and a history of official food guides over time. It ends with some actionable pieces of advice for folks who find themselves in a less healthy state than they’d like or who simply want to maintain as healthy of a diet as they can. I thought it was very informative. I hope you find it helpful.

Just a quick reminder that we’re holding two free parenting webinars on Thursday as Amy McCready from Positive Parenting Solutions answers the question, “Is Time Out a Waste of Time?”

Join us for this free live webinar on Thursday (12/2) at 2-3 p.m. EST and again at 9-10 p.m. EST — whichever time works best for you!

Amy promises that we’ll walk away with concrete tools we can use right away to see results — and I definitely felt that way after our first webinar with her.  I’m really looking forward to hearing even more of her tips and strategies.

RSVP now, and I’ll see you then!

Have friends who would enjoy this webinar too? Click here to share the webinar on Facebook.

FREE Webinar Reminder: Is Time Out a Waste of Time? is a post from Life...Your Way

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Related Stories

• Question of the Day: What Would You Like to See from Life…Your Way in 2012?
• Top 10 Life…Your Way Posts in 2011
• Come Watch the All in Good Time Trailer (And Enter to Win 1 of 10 Copies!)

To help you accomplish your purchase planning this year, here is the Discover More cash back calendar for 2012.

2012 Discover More Rewards Calendar

After reviewing the Discover rewards calendar, there’s one thing I just can’t figure out. Why are they giving 5% cash back on movies every quarter? Anyone have any ideas?

More on Discover More Calendar

Cash Back Limits. The 5% cash back is for spending up to $1,500 each quarter in the bonus categories during the first two quarters. Discover hasn’t announced the cash back limits for 3rd and 4th quarter yet.

Activation. Don’t foreget you’ll need to enroll each quarter to get the cash back. Even though the Discover More 2012 calendar is available in advance, you have to wait to enroll each quarter.

How to activate. To enroll, you’ll need to login to your account online. From there, you’ll find the link to activate your quarterly bonus category.

Other Calendards

To see the other calendars for 2012 to compare, see the 2012 Chase Freedom Rewards Calendar.

Click here to leave a comment on this article.
© My Dollar Plan

Good news! The chance you’ll need an IRS tax attorney because you’re being audited isn’t that great. You have about the same chance of dying in a motor vehicle accident (1:100). In fiscal year 2010 (tax year 2009), the IRS audited 1.1% of the more than 142 million returns filed the year before, but for taxpayers making less than $200,000, the rate dropped a bit to about 1.0%.

However, if you’re in a higher income category, you have more reason to worry, even if you keep a tax attorney on retainer. It seems a higher income is an automatic audit trigger. The tax audit rate of those with incomes higher than $200,000 was 2.7%, and for those earning more than $1 million, the audit rate jumped to 8.4%. Why? Finding a 15% mistake on someone making $40,000/yr has a much different payout than someone making $4,000,000.

Many IRS audits are relatively simple “correspondence” audits. It’s that letter in a plain envelope that you dread and yes, I’ve gotten them – actually I’ve gotten several. Eight years ago I was a part owner in a very successful lumberyard and we were on the IRS watch list I guess. No one likes to get a letter from the IRS, but it’s probably less nerve wracking than a tax agent knocking on your door. I’ve been through that too … on a Sunday morning with 3 agents in dark suits and sunglasses knocking on the door at 6:00AM. Not fun. More than 1 million of the almost 1.4 million audits last year were correspondence audits, while about 310,000 were field audits.

Chances of being audited

Source: IRS and BusinessWeek

How a return is selected for an audit

Just like your credit score, you also have an IRS “score,” called the Discriminate Function Score (DIF). Based on a sample set of thousands of returns, the IRS determines what an average range and a valid range for, say, the amount of charitable contribution deductions claimed by a person earning $50,000/yr. Then, a taxpayer making that income level who claims a much higher deduction will get a higher DIF Score, and that taxpayer’s audit probability goes up.

That system only finds discrepancies with deductions; it doesn’t (can’t? … yet?) find someone who is under-reporting income. So, the IRS also examines certain types of businesses … especially cash businesses.

File BOTH your personal and business taxes with TurboTax and get the maximum refund you’re due!

The IRS estimates that up to 15 percent of the $1.9 trillion reported each year (that’s $290 billion+) goes unreported. As a result, in addition to high DIF scores, the tax agency focuses on cash businesses, such as restaurants, gas stations, house painters, flea market peddlers, domestic housekeepers, and hair salons. If the business primarily accepts cash as payment, it’s probably in the IRS’s crosshairs.

For small-business owners who receive a 1099, this is less of an issue, as the IRS can check what the taxpayer reports against the 1099 filed by the business that paid the money. In that situation, the IRS has a record of all your income.

Never be afraid to take a legitimate deduction

If you have a legitimate deduction and the paperwork to support it, take it. Don’t be intimidated into letting a deduction go by the wayside just because you fear an audit.

Your best bet is to always be honest and truthful when completing your tax return … even if what you’re reporting is outside of the norm.

Links to products or services may be affiliate links. See my disclosure policy on the site or on my About page.

What do you dread?

Many hate paying taxes. But, perhaps, this is just a perception problem.  Maybe we should be thankful we get to pay taxes.  Yes, I said thankful.

Do you think I’m crazy?!?  Are you wondering if I’ve gone stark, raving mad?  Why in the world would anyone be happy about paying taxes?

Well, I want to prove a point.  I want to show you that happiness has a lot to do with the way you see things.  If you can look at something just a little bit differently, you can often change your whole perception of the situation.  This can have a dramatic impact on your happiness.

A Poem that Turns Things Upside Down

I ran across what I’m going to call a poem this week that really challenges our perceptions.  I think it has circulated around the Internet a bit so maybe you’ve already seen it, but I hadn’t and I believe it has tremendous value so I’m going to publish it again.  I’m not sure where it came from originally.  If I did, then I‘d definitely give proper credit.  Here it goes:

I am thankful for…

…the mess to clean after a party because it means I have been surrounded by friends.

…the taxes I pay because it means that I am employed.

…the clothes that fit a little too snug because it means I have enough to eat.

…my shadow who watches me work because it means I am out in the sunshine.

…a lawn that needs mowing, windows that need cleaning and gutters that need fixing because it means that I have a home.

…the spot I find at the far end of the parking lot because it means I am capable of walking.

…all the complaining I hear about our government because it means we have freedom of speech.

…my huge heating bill because it means that I am warm.

…the lady behind me in church who sings off key because it means I can hear.

…the piles of laundry and ironing because it means my loved ones are nearby.

…the alarm that goes off in the early morning hours because it means that I’m alive.

…weariness and aching muscles at the end of the day because it means I have been productive.

Your View Determines Your Happiness

Can you see how your view of a situation matters immensely?

I can certainly get upset and mad that so much money comes out of my paycheck every couple of weeks to pay my taxes.  However, what would that get me?  It would only leave me feeling irritated, frustrated and defeated.  None of these have anything to do with happiness.  On the other hand, I can choose to look at the situation in a positive light.  I can be grateful and happy that I am gainfully employed and that I have the good fortune of earning enough money to support my family.

Here’s my point.  How you interpret your life is your choice.

But, I can tell you that your happiness depends on the way you decide to go.  If you are unhappy, disgruntled and disappointed with your life, you can turn things around by reexamining and reevaluating your view of the situation.  A new choice equals new happiness.

This is an incredibly powerful idea.  I guarantee that you will catch more flies with honey than with vinegar in your life.  If you always go around, “Woe is me.”  No one is ever going to pay you any mind.  After all, who wants to hire, marry, work with, live with, befriend, promote or hang around a person that is unhappy and self-defeated all the time?

Smile.  Be grateful for what you have.  Don’t worry about what you lack.  Choose a positive outlook and interpretation of your life.  You will feel happier and your opportunities will grow.  Even if they don’t, you benefit by choosing to be happy.

You see you can either go through life as an old sourpuss dreading the next thing around every corner or you can choose to be happy.  It is that simple.  Which do you prefer?  I’m thankful I have to pay taxes.

Photo: Copyright PhotoXpress.com

© My Super-Charged Life, 2012. | Permalink | One comment | Add to del.icio.us

The Jan. 18th protest was the largest in U.S. history; our new graphic recounts that momentous day for social media users in tweets, emails and calls. We invite you to pay respects to this online movement that inspired/pressured 13 SOPA-supporting senators (and 3 co-sponsors) to issue statements against overly-strict online privacy measures. And as exciting as the success of this online mobilization has been, our efforts only tabled two of the worst censorship bills to ever face the web.

I’ve used H&R Block Online (formerly TaxCut) for 14 years and I’ve never had a problem of ANY sort with their tax preparation software, their electronic income tax filing, or their Worry-Free Audit support. But I’ve always wondered about using TurboTax. Was it easier to use? Was it more intuitive? Would it calculate my taxes any differently than H&R Block Online?

After purchasing TurboTax AND H&R Block Online for the current tax year, I was about to find out.

What’s new in tax preparation software

The buzzword phrase in tax preparation software this year seems to be “user-friendliness.” It’s all the rage and both TurboTax and H&R Block Online are fighting for the rights to claim that niche. What that means for you is your 10 year old could probably do your taxes. Yes, the language has been THAT simplified.

Both software packages allow you to import W-2’s and even some 1099’s. Both have refund meters, free basic return preparation, and support tools and services that they’re justifiably proud of and both offer tools to help you identify tax issues (consequences?) related to life changes. Both offer software upgrades that allow you to prepare your own corporate, partnership or LLC returns. But beware: there are many traps for the uninformed and uninitiated. Tax professionals receive up to 50 hours or more of training classes each year  related to these types of returns and it isn’t because someone promises to bring doughnuts to the class. Business taxes are particularly complicated without a tax pro or software to help you out!

Both sets of software offer help if you’re audited, though you’ll have to pay for it. Both offer free federal online tax return preparation and e-filing if you meet certain qualifications (TurboTax is better though) and both guarantee to give you the maximum deductions you can possibly get as well as the maximum refund you’re owed. There were some minor differences in the prices of certain products.

TurboTax features vs. H&R Block Online features

So … which one was better?

They’re comparable in almost all areas and the pricing is virtually the same so it all boils down to ease of use.

The Winner?

I’m going to have to call it for TurboTax. It just felt more user-friendly and natural to use plus their phone support answered a lot more quickly. I liked their text bubbles that would explain crazy tax jargon and guide me through my tax return. And TurboTax also warned me to save my progress before changes could be lost. Anyone who has ever lost a lot of data knows how important it can be to save your work! TurboTax also allowed me to bookmark any sections or pages I wanted to return to later.

TurboTax also has kept that nifty little “GPS” type of feature that shows you where you are in the process. It makes completing your taxes a little less stressful and boring when you can see the light at the end of the tunnel.

Though both sets of software had a refund meter, only TurboTax had an “audit triggers meter,” which calculated my chance of being audited. TurboTax also double-checked my W-2 for proper Federal Income Tax, Social Security, and Medicare withholdings. Having written about entries that could trigger a tax audit, I was glad to have this feature with TurboTax.

H&R Block Online is a great product, don’t get me wrong. It was accurate and has been dependable for over 14 years for me personally. I also like that there are offices available where I can go for help if I REALLY mess things up, … but my personal preference has changed over to TurboTax. Maybe H&R Block Online will sit up and take notice and make their product more user-friendly. I’ll just have to check back next year!

Thankfully, there hasn’t been too many tax law changes this year and the IRS is able to receive returns much earlier than last year, so what are YOU waiting for?

Start your taxes for FREE with Turbo Tax and pay only after you file!

Links to products or services may be affiliate links. See my disclosure policy on the site or on my About page.

Something else it includes that I haven’t paid much attention to until now is an illustration of a sturdy three-legged stool. This stool represents what the state of Texas sees as the three legs of any healthy retirement plan: Social Security benefits, a 401(K), and our pension. Recently, I have begun to wonder about the sturdiness of this three-legged stool.

I have heard of many bankruptcies by both companies as well as governments over the last two years. Also, the last time I checked my statement I noticed an asterisk beside the health plan benefits. The asterisk stated that the health plan was not a guarantee and that basically the state has discrepancy to do away with health insurance benefits in retirement should it see fit. This had me thinking, for those of us who are fortunate enough to be offered pension plans (only 31% of employees were offered a pension plan in 2010), how safe is our pension should our company or agency declare bankruptcy between now and when we are ready to retire?

Your Private Sector Pension has Insurance

Pension plans may run out of money, the company may liquidate and there is no new company to take the plan over, or perhaps the current company can continue to operate but not while maintaining its pension plan. All of these scenarios spell trouble for workers who are counting on their pension benefit. Fortunately, there is insurance for your pension. The Pension Benefit Guaranty Corporation (PBGC) was formed in 1974 to insure private sector pension plans from the scenarios listed above.

This insurance is not funded by taxpayer money. Instead, companies must pay insurance premiums set by Congress. Other funds are received from investment income, assets from pension plans taken over by PBGC, and recoveries from the companies formerly responsible for the plans. To give you an idea of how much is collected, in FY 2011, $2.4 billion was collected from single-employer and multiemployer programs, and as of September 30, 2011, the PBGC had an investment portfolio worth almost $70 billion.

PBGC Limits Types of Benefits and Amounts

The PBGC has its limits including the type of payout and the amount of payout. For example, the PBGC does not guarantee health or welfare benefits, life insurance, vacation pay, severance pay, or benefits payable because of disability that occurs after the guarantees take effect.

Maximum Pension Benefit. Also, the maximum benefit payout for a life annuity with no survivor benefits for 2011 is:

• $54,000 yearly ($4,500 monthly) at age 65
• $42,660 yearly ($3,555 monthly) at age 62
• $24,300 yearly ($2,025 monthly) at age 55

Notable Bankruptcies and Pension Failures

Since its inception, the insurance plan has funded pensions for 1.3 million workers and retirees in 4,140 terminated single-employer plans. Generally air transportation and the metals industry account for 50% or more of all pension failures. However, with the decline in the auto industry and multiple automaker bankruptcies during the recession, automotive parts manufacturer Delphi Corp. became the second largest pension failure in the PBGC’s history in July 2009 with 69,402 vested employees.  The liability assumed by the PBGC was a staggering $6.1 billion. Other notable bankruptcies that resulted in failed pension plans includes United Airlines with pension liabilities of $7.4 billion (2005), Bethlehem Steel with pension liabilities of $3.7 billion (2003), and US Airways with pension liabilities of $2.8 billion (2003).  In recent news, PBGC is currently protecting the pension plans of 63,000 former Kodak employees as Kodak files for Chapter 11 bankruptcy.

Currently (as of the end of 2008), the PBGC is underfunded by a staggering $10.7 billion, a figure that continues to grow. This is due to the high number of company bankruptcies over the last three years.

So what does this mean for me and my public-sector pension plan? It turns out that if the state of Texas declares bankruptcy at some point between now and 30 years when I will be hoping to retire, my pension will not be insured by the PBGC (only private sector pension plans are insured). However, most public sector pension plans are protected by state laws and constitutional amendments. As for Texas, it looks like I will be fine.

Do you have a pension? Is it a private sector or a public sector plan? 

Other Articles You May Enjoy

• 5 Weird Bankruptcies Declared During the Recession
• Company is Going Bankrupt. What About My Pension?
• Brand Names that Kicked the Bucket During the Recession

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© My Dollar Plan

Naturally, we both wondered if shopping like this was really saving us money, or just saving us from more trips to the grocery store, which in turn would likely save us money.

The problem, for me, with shopping at places like Sam’s Club is that there are so many shiny things to distract you. If you manage to steer clear of the electronics section, bypass the rows of discounted books and outdoor equipment, you will eventually make your way to the food, where the occasional deal may be found.

We like to stock up on things like ground beef, which comes reasonably priced in big “family pack” packaging. Once home, we separate the ground beef into roughly 1 pound portions and freeze them for future use in various recipes and regular dishes (tacos, spaghetti, homemade burgers, etc).

We also typically like to stock up on certain non-food items – paper towels, toilet paper, kitchen trash bags, over-the-counter medicines and vitamins, etc. The bulk pricing is not always a deal here, and I’ve occasionally found that I can often save more by coupling a store sale with a manufacturer’s coupon.

Still, the idea of stocking up on paper products for the next month or two, and not having to contend with those items in your weekly grocery store trips is appealing.

Shopping at a warehouse club like Costco or Sam’s can drive down your unit costs for items you regularly use, but there is one thing to consider: storage space. I would not suggest shopping at a warehouse club if you are short on space, including plenty of freezer space.

For storing paper products, consider a closet shelf in an guest bedroom, or under-cabinet storage in a guest bath. Naturally, places like basements and garages make great storage locations, but consider fumes, humidity and temperature and only store items that may be safely exposed to those elements.

On the Way Out: Top Off the Tank

Before leaving Sam’s Club we typically top off our gas tank, as the cost of fuel is a good $0.05 per gallon cheaper than it is in our town. Obviously gas pricing is regional, and you may or may not experience similar results in your area. However, we have found the gas prices at warehouse clubs consistently beat those of surrounding stations.

Consider the Costs: Membership Fees

Though warehouse clubs do occasionally allow non-members to shop on special days, it does cost money to shop. Do a simple break-even analysis to make sure you aren’t giving away all of your savings in membership fees each year. Divide your annual membership costs by 12, and then estimate how much you are saving each visit over shopping at your local grocery store with coupons.

If the cost of the membership is more than the amount you are saving each monthly visit, then it probably doesn’t make sense to sign up. Remember, bulk shopping is not always cheaper shopping.

This week’s task for Saturday in the Weekly Household Planner:  Straighten car interior (trash, vacuum)

I don’t know about you, but I can be in a much happier mood doing carpool when my car is clean!  It is often hard to keep up with this task, but when you have a regular schedule for picking up inside the car, it will be much easier to maintain.

This task is perfect for younger kids – remember that word delegate?  Even 4 year old can go out in the car and help find trash and items that do not belong in the car.  Give them a small bag and even have a contest to see how much they can find.  Then grab the vacuum and do a quick once over.  I also take a damp rag and wipe down the dashboard and clean my steering wheel off – it is amazing how dirty it gets!

Go one step further and pick up a few air fresheners so you can have them on hand to replace as you tidy up your vehicles.  Getting all your senses involved is a good thing, clean car + fresh scent = happy carpooling mama!

For some other tips on keeping your car in “user friendly” condition, you’ll want to read:  Tips for the Mom Chauffeur.

Photo Credit

Weekly Household Quick Tip is a post from: The Confident Mom

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