Boring (but Necessary) stuff

Tuesday, April 7th, 2009

This is probably going to be a shorter post today because we are at the height of tax season and I am up to my eyeballs in tax return work!

However, here is a non-tax related but important item for Turbo-Moms everywhere. Tax time is also a good time to get thinking about other information that we need to get in order, such as life insurance policies, wills and such.

Here’s why:

• Have you had another child or 2 since you took out that term life insurance policy? Be sure to contact your agent and get a “change of beneficiary” form and add your newest family members to the policy. 
• Do you have a will?  If not, there are all sorts of programs out there to help you along with the process.  The best deal I’ve found is the Family Lawyer software package offered by Broderbund Software (www.broderbund.com), the same company that manufactured “Print Shop” and still does.  For $20, you have a whole suite of documents, including wills, trusts, etc. as well as hundreds of other documents (example: if you need to sell your car or need to complain to someone but aren’t sure what to say).   What I recommend is drawing up your basic will using the software and then taking it to a trusted estate attorney to review it to make sure that it fits your state’s laws.
• Did you have a big refund or owe a lot this year? If so, it’s time to adjust your W-4, i.e. your tax withholding from your paycheck.  Check out www.paycheckcity.com for an easy to use calculator to help you adjust it.

Gotta get back to taxes but have a great week!

Copyright 2008-2009 Kristin Delfau, author of Turbo-Mom's Guide to Saving Money Without Wasting Time a womens' personal finance book, and Aji Publishing.

Tags: important documents, insurance, taxes
Posted in Turbo-Mom's Guide to Saving Money Without Wasting Time, saving money | 1 Comment »

DIY Taxes

Monday, February 2nd, 2009

Hi everyone!  We’re covering a weightier topic this week…

It seems like there’s that usual seasonal push/ads for tax preparation these days, including the do-it-yourself software.  In these tough financial times, many people are looking to cut costs in any way they can, including doing their own taxes for the first time by themselves instead of paying a preparer.  Some of you may enjoy keeping up with tax law changes and have been doing your taxes yourselves for a long time–my hat is off to you for following up on all the laws!! 

However, as a tax professional, I think that having a good tax planner in your corner is worth more than the “savings” possibly generated by a DIY software, but it has nothing to do with promoting my industry or keeping myself in business!

There are several reasons I feel this way:

 1. Many of the “box” programs are advertising “Free 5 Federal e-Files and the same product price as last year!” It sounds good until you find out that now you are going to have to pay for the state return itself in addition to the state e-File fee, unless you buy the most expensive of the software’s product line.  So your $30 or $40 DIY will generally end up being around $80 – $90, unless you live in a state wherea you are not required to file a state return.  I hate this kind of false advertising.

(On a side note, I have heard some gripes about, “Well, what am I going to do with 5 Federal E-files anyway?”  which is pretty legitimate.  The only people who will benefit from this are those who have to file returns for their children as well.  And you can’t amend by e-File–that’s only by paper return.)

2. State-related DIY software may be out of date without you knowing it.  DIY software is usually released in the end of December/beginning of January–which is usually before the states have finalized their tax forms for the year.  Thus, if you don’t download a software update, you could be using the wrong forms which will delay your refund and possibly causing you to have to do it over again–wasting a lot of time.  For readers who are CT residents, please click the notification about this problem and how to fix it here: http://www.ct.gov/drs/cwp/view.asp?Q=432034&A=1436

3. DIY software is only as good as the user completely understands the question.  Otherwise, your information can end up in the wrong places and thus generate an erroneous return. Or you could end up missing out on deductions because you didn’t quite understand the question–so you skip it, thinking it doesn’t apply to you. And customer service can be lopsided, a long wait or just frustrating if you are trying to work out a problem.

4. There are a lot of changes in tax law each year. Consciencious tax preparers regularly attend update classes to keep up with changes in federal and state tax law.  My tax association hosts a 2-day, 8 hour/day event to inform us of changes each year so that preparers are up-to-date on the rules.  As a DIY-er, in this case, what you don’t know can hurt you in the form of erroneous returns or missed deductions.

5. Tax planning and tax preparation are not the same thing.  A good tax preparer will ask you lots of questions to figure out how to legally save you money on your tax return.  A great preparer will work with you to plan on saving money in future years and finding strategies to maximize those savings.  A DIY software or a generic customer service center isn’t going to do that for you. 

Money issues are stressful enough these days without adding tax worries to them!  There are plenty of good preparers out there so do inquire around if you think you might want one or are considering changing.  And if you have any tax questions, please do not hesitate to contact me. 

 Next week, we’ll cover how to figure out if your preparer is any good or not.  And where to find a new one if you are ready for a change!

Copyright 2008-2009 Kristin Delfau, author of Turbo-Mom's Guide to Saving Money Without Wasting Time a womens' personal finance book, and Aji Publishing.

Tags: taxes
Posted in saving money | 3 Comments »

Save Money with Kristin Delfau – Turbo-Mom Radio Appearance

Sunday, January 25th, 2009

Kristin Delfau, author of Turbo-Mom’s Guide to Saving Money without Wasting Time, appeared recently on WLAD. Listen to her radio interview:

Kristin Delfau Turbo-Mom Radio Appearance on WLAD

Copyright 2008-2009 Kristin Delfau, author of Turbo-Mom's Guide to Saving Money Without Wasting Time a womens' personal finance book, and Aji Publishing.

Tags: saving money, Turbo-Mom, WLAD Radio Appearance
Posted in Radio Appearance, Turbo-Mom's Guide to Saving Money Without Wasting Time, saving money | 1 Comment »