Queercents

Even the cheapest medical care is expensive. Healthcare costs are getting higher and we’re not getting younger. Tracking your medical expenses can be worth the time and effort—especially if they become tax deductible.

Tax Tidbit #2:

Make sure you take the deduction for your medical expenses, if you qualify.

The IRS allows you to deduct a portion of your medical expenses. The amount that exceeds 7.5% of your adjusted gross income (AGI) can be deducted. Report the deduction on Schedule A, as an attachment to Form 1040.

1. Calculate your AGI by completing the first page of Form 1040. The figure you have at the bottom of the page is your AGI. Simply stated, It is your income less certain allowable deductions.

2. Multiply your AGI by 0.075 to calculate 7.5%. For example, if your AGi is $60,000 your medical expenses will need to be more than $4,500 to take this deduction.

3. Get out those receipts and tally your medical expenses. If they are greater than your 7.5% calculation, include them! To continue the example above, if your medical expenses were $6,000 you could include $1,500 on your itemized deductions. Read the rest of this entry »

New years eve passed quickly and here we are at the beginning of another year. I’ve had a lot on my mind lately. I’ve been thinking about my various resolutions, remembering lessons learned last year, even paying attention to the upcoming elections. On top of this…taxes!

This time last year, I published a series to guide Queercents readers through tax time. To revamp the series for 2008 the format will be Tax Tidbits! Here’s a sneak preview of weeks to come:

Tax Tidbit #1:

Be careful in your correspondence with the IRS. Navigating a reply to an IRS notice can be tricky.

April 15th passed and my friends’ father had not paid his taxes. October 15th passed and he still had not paid his taxes. Not too long after, the IRS sent a request for his tax return. He, being the polite gentleman he is, responded with a simple letter. It stated he was not paying his taxes “as a conscious objector to this illegal war in Iraq.”

Care to guess what happened next? Read the rest of this entry »

While we’re taking a break during the holidays, follow along each day as our contributors provide a recap of their best posts from 2007. Thanks for reading and being a continued supporter of Queercents. Enjoy!

Most Commented:
Expanding Your Family

Ultimate Tip:
How To Project Your Cash Flow

Recurring Themes:
How Organized Are You?
Should You Hire a Tax Pro?

Personal Favorite:
When Banking Gets Frustrating

Read the rest of this entry »

In the last installment of Financially Organized we organized your bank statements. These gems contain the bulk of your financial information but they don’t list all the information you’ll need. Unfortunately, we have to keep receipts too. Those pesky slips of paper litter our wallets, purses, homes and lives.

Your receipts contain details of the transactions summarized on your bank statements. They are absolutely necessary in the event of an audit—your bank statements alone will not suffice. Your receipts provide item descriptions, the dates and amounts of your purchases. They also contain information about how you paid. Which statement will it show up on? Was it a cash payment or a debit/credit card transaction?

Keep track of all your money—in and out. Have a record of everything you spend and everything you earn (whether it gets deposited or not). This sounds tedious so I make a game of it. Read the rest of this entry »

Given the choice, I’ll make a costume before buying one. Sure I may purchase elements but a ready-made costume? Never! I don’t dress up often and have to admit, my costumes haven’t won contests. But I sure enjoy the creativity that flows around Halloween!

This year, I’m sporting the “hectic tax preparer moving her office” look. Needless to say I’ll be sans costume tonight. But I’m still in the Halloween spirit. My carved pumpkin is inspired by the latest New Yorker cover, Cheney on a pumpkin. I’ve carved a portrait of Mr. Burns (from The Simpsons) and have it glowing out the window.

I’ve been thinking back on Halloweens past and have been laughing at previous costumes. I remember such doozies as the Flashdance costume. A few cuts to an oversized black t-shirt and some lavender fabric paint. Instant Jennifer Beals. While I wasn’t out when I wore that one, it should have been a clue! Read the rest of this entry »

The end of the 3rd quarter of this year is over. The calendar shows it yet I’m in disbelief. Halloween is Wednesday and that means October 31st! Scary thought, isn’t it! Many of us just filed our 2006 tax returns two weeks ago. Now another year has almost passed and many of us have disorganized financial records. Frightening!

The importance of record keeping has been a topic of conversation lately. We all know staying on top of our financial records saves us time and money. We just don’t always do it.

Take some time to get yourself out of the cycle of being behind! Over the next few weeks I’ll walk you through a simple way to organize your 2007 financial data and be on track. Imagine how great it will feel to start 2008 with a fresh, clean slate. Come January you can work on your resolutions–not organizing old money stuff. Read the rest of this entry »

Here’s an example of how frustrating banking can be…even for us financial professionals. The bank where I conduct my business banking (let’s call them Bank W) started enforcing one of their policies. Here’s how their minor change played out from a customers perspective.

A couple weeks ago I took a deposit to the ATM at Bank W. The deposit was larger than usual because it included a check from our HELOC at Bank X. I was taking a short-term loan from our home equity line of credit to get my business situated in a new office.

A few days later, I balanced my business account by accessing Bank Ws on-line information. I was shocked to learn that the HELOC check I’d deposited was reversed out. What? I called Bank Ws 800 number for more information. The customer service rep informed me the check was not endorsed and she didn’t have more information. Her only suggestion was for me to go to the branch to resolve the issue. I felt a frustrating situation getting worse. Read the rest of this entry »

Time’s almost up! If you’re one of the 10.2 million taxpayers who requested an extension this past April, the October 15th deadline is Monday. You still have a week to file and avoid late penalties. While preparing your taxes in seven days may seem impossible, you can do it! Find solace in the fact that others are canceling dinner dates and fun, entertaining evenings to prepare their taxes—myself included.

Here are some quick tips to remember:

The IRS urges us to file electronically or use their Free File program. This helps the IRS process your returns quickly and efficiently. And the IRS claims e-filers make fewer mistakes!

If you are concerned about errors, check out this comprehensive article at Bankrate.com.

If you owe the IRS money and pay via credit card you’ll be assessed a fee! Save the fee by Read the rest of this entry »

Admittedly, I’m a beach girl. I’d prefer to live in shorts on a beach near the equator than in wool on snowy mountains. Being comfortable temperature wise is important to me. I get irritated easily and can’t focus if I’m too cold. And unfortunately, Northern California never gets hot enough for me.

When I lived in Florida my ex-girlfriend took liberties to use the air-conditioner at my apartment non-stop. My bills were outrageous the summer months we were together. I asked her to stop adjusting the thermostat or chip in for the bill but that didn’t work. Because of that and a few other issues, I broke off the relationship before heater time! Read the rest of this entry »

It wasn’t long ago that home mortgages were so attractive people were flocking to buy homes. Today, I can’t turn a corner without hearing about foreclosures. The Mortgage Bankers Association reports foreclosures are at the highest rate in the organizations 55-year history. This trend is expected to continue well into next year. It is no shock that states like Arizona, California, Florida and Nevada are leading the pack. These were hot places to invest in real estate, especially for people who never intended on occupying the homes themselves.

Foreclosure is becoming such an epidemic that the IRS added a new section on their website to help guide taxpayers. Although I was disappointed to find the “section” the IRS promotes is actually just a single page with a link, the information is surprisingly clear and concise. Read the rest of this entry »