The IRS announced on December 10, 2008 that interest rates for the first quarter would be reduced by 1%. The new rates will be:
Five (5) percent for overpayments [four (4) percent in the case of a corporation];
Five (5) percent for underpayments;
Seven (7) percent for large corporate underpayments; and
Two and one-half (2.5) percent for the portion of a corporate overpayment exceeding $10,000.
If you’re behind on your taxes, now’s a good time to get caught up.
You can find the entire IRS ruling at: http://www.irs.gov/newsroom/article/0,,id=201115,00.html

* If you’re on the road for just a day (no overnight), the cost of your meals is not deductible. So, if you travel on businesss to a nearby city, you can only deduct the cost of transportation not the cost of meals or other traveling expenses. Hint: if you meet someone for a meal, the cost may be deductible at 50%.
* You can deduct the cost of travel only if it is an “ordinary and necessary” business expense. You can deduct travel expenses incurred in attending a trade, business, …

With lots of packages being sent and delivered, this would be an easy one to believe. Don’t let your Holiday be ruined by this virus. You can read more about it at: http://www.snopes.com/computer/virus/ups.asp
Happy Holidays to you and your family!
This has been circulating since July 2008 and it’s been popping up in people’s emails recently.  Just thought I’d bring this to your attention.

That’s a question one of my clients asked recently as we prepared for 2008 taxes. I’m sure it’s a question a lot of you have so here’s an example and my explanation.

2009 Gross Income

$68,953

Estimated Federal Taxes

$5,251

Marginal Tax Bracket

15%

% of Income to Taxes

7.60%

You can see that the marginal tax bracket is higher than the actual percentage of gross income paid to taxes. That’s because the government taxes the first money you make at a lesser rate than the later money and what that means is that the more you make, the …

Every month, our utility bills come in the mail like clockwork.  Some months the balance is high and sometimes we catch a break.  This is definitely the year to do as much as you can to avoid major utility bills. Here are a few hints:

Check with utility companies about payment plans.  When you enter into a plan, your monthly payment is calculated according to the average of your bill for the last twelve months.  The monthly payment may be above or below what the actual amount of the service is. …