September Is National Preparedness Month – Make a Plan
Sep 3rd
From Ready.gov, http://bit.ly/dpg6tj:
Your family may not be together when disaster strikes, so it is important to plan in advance: how you will contact one another; how you will get back together; and what you will do in different situations.
Family Emergency Plan
- Identify an out-of town contact. It may be easier to make a long-distance phone call than to call across town, so an out-of-town contact may be in a better position to communicate among separated family members.
- Be sure every member of your family knows the phone number and has a cell phone, coins, or a prepaid phone card to call the emergency contact. If you have a cell phone, program that person(s) as “ICE” (In Case of Emergency) in your phone. If you are in an accident, emergency personnel will often check your ICE listings in order to get a hold of someone you know. Make sure to tell your family and friends that you’ve listed them as emergency contacts.
- Teach family members how to use text messaging (also knows as SMS or Short Message Service). Text messages can often get around network disruptions when a phone call might not be able to get through.
- Subscribe to alert services. Many communities now have systems that will send instant text alerts or e-mails to let you know about bad weather, road closings, local emergencies, etc. Sign up by visiting your local Office of Emergency Management web site.
Planning to Stay or Go
Depending on your circumstances and the nature of the emergency, the first important decision is whether you stay where you are or evacuate. You should understand and plan for both possibilities. Use common sense and available information, including what you are learning here, to determine if there is an immediate danger. In any emergency, local authorities may or may not immediately be able to provide information on what is happening and what you should do. However, you should watch TV, listen to the radio or check the Internet often for information or official instruction as it becomes available. For information on staying put or sheltering in place, click here.
Emergency Information
Find out what kinds of disasters, both natural and man-made, are most likely to occur in your area and how you will be notified. Methods of getting your attention vary from community to community. One common method is to broadcast via emergency radio and TV broadcasts. You might hear a special siren, or get a telephone call, or emergency workers may go door-to-door.
Emergency Plans
Use the New Online Family Emergency Planning Tool created by the Ready Campaign in conjunction with the Ad Council to prepare a printable Comprehensive Family Emergency Plan:
http://ready.adcouncil.org/beprepared/fep/index.jsp
Use the New Quick Share application to help your family in assembling a quick reference list of contact information for your family, and a meeting place for emergency situations:
http://ready.adcouncil.org/beprepared/quickshare.html
You may also want to inquire about emergency plans at places where your family spends time: work, daycare and school. If no plans exist, consider volunteering to help create one. Talk to your neighbors about how you can work together in the event of an emergency. You will be better prepared to safely reunite your family and loved ones during an emergency if you think ahead and communicate with others in advance. Read more: School and Workplace.
September Is National Preparedness Month – Get a Kit
Sep 2nd
From Ready.gov, http://bit.ly/9WHvua:
You may need to survive on your own after an emergency. This means having your own food, water, and other supplies in sufficient quantity to last for at least three days. Local officials and relief workers will be on the scene after a disaster, but they cannot reach everyone immediately. You could get help in hours, or it might take days. In addition, basic services such as electricity, gas, water, sewage treatment, and telephones may be cut off for days, or even a week or longer.
Recommended Items to Include in a Basic Emergency Supply Kit:
- Water, one gallon of water per person per day for at least three days, for drinking and sanitation
- Food, at least a three-day supply of non-perishable food
- Battery-powered or hand crank radio and a NOAA Weather Radio with tone alert and extra batteries for both
- Flashlight and extra batteries
- First aid kit
- Whistle to signal for help
- Dust mask, to help filter contaminated air and plastic sheeting and duct tape to shelter-in-place
- Moist towelettes, garbage bags and plastic ties for personal sanitation
- Wrench or pliers to turn off utilities
- Can opener for food (if kit contains canned food)
- Local maps
- Cell phone with chargers, inverter or solar charger
Additional Items to Consider Adding to an Emergency Supply Kit:
- Prescription medications and glasses
- Infant formula and diapers
- Pet food and extra water for your pet
- Important family documents such as copies of insurance policies, identification and bank account records in a waterproof, portable container
- Cash or traveler’s checks and change
- Important family documents such as copies of insurance policies, identification and bank account records in a waterproof, portable container. You can use the EFFAK Emergency Financial First Aid Kit – PDF, 277Kb) developed by Operation Hope, FEMA and Citizen Corps to help you organize your information
- Emergency reference material such as a first aid book or information from www.ready.gov
- Sleeping bag or warm blanket for each person. Consider additional bedding if you live in a cold-weather climate.
- Complete change of clothing including a long sleeved shirt, long pants and sturdy shoes. Consider additional clothing if you live in a cold-weather climate.
- Household chlorine bleach and medicine dropper – When diluted nine parts water to one part bleach, bleach can be used as a disinfectant. Or in an emergency, you can use it to treat water by using 16 drops of regular household liquid bleach per gallon of water. Do not use scented, color safe or bleaches with added cleaners.
- Fire Extinguisher
- Matches in a waterproof container
- Feminine supplies and personal hygiene items
- Mess kits, paper cups, plates and plastic utensils, paper towels
- Paper and pencil
- Books, games, puzzles or other activities for children
Find out how to keep food safe during and after and emergency by visiting: http://www.foodsafety.gov/keep/
31 Small Business Tax Deductions
Sep 1st
Since deducting expenses from your top-line revenues reduces your tax burden, it’s easy to be too aggressive in claiming them. However, not deducting all that you are allowed leaves money on table. Use the following checklist of rules to reduce your taxable income as much as legally possible.
To read the rest of this article by Greg Go, the cofounder and CTO of Wise Bread, a top personal finance community, please go to http://bit.ly/dcPMuT.
Top 10 Things Every Taxpayer Should Know about Identity Theft
Aug 31st
IRS Summertime Tax Tips 2010-11 http://bit.ly/avRjSv
Taxpayers need to be careful to protect their personal information. Identity thieves use many methods to steal personal information and then they use the information to file a tax return and get a refund. Here are 10 things the IRS wants you to know about identity theft so you can avoid becoming the victim of an identity thief.
- The IRS does not initiate contact with a taxpayer by e-mail.
- If you receive a scam e-mail claiming to be from the IRS, forward it to the IRS at phishing@irs.gov
- Identity thieves get your personal information by many different means, including:
- Stealing your wallet or purse
- Posing as someone who needs information about you through a phone call or e-mail
- Looking through your trash for personal information
- Accessing information you provide to an unsecured Internet site.
- If you discover a website that claims to be the IRS but does not begin with ‘www.irs.gov’, forward that link to the IRS at phishing@irs.gov
- To learn how to identify a secure website, visit the Federal Trade Commission at www.onguardonline.gov/tools/recognize-secure-site-using-ssl.aspx
- If your Social Security number is stolen, another individual may use it to get a job. That person’s employer may report income earned by them to the IRS using your Social Security number, thus making it appear that you did not report all of your income on your tax return.
- Your identity may have been stolen if a letter from the IRS indicates more than one tax return was filed for you or the letter states you received wages from an employer you don’t know. If you receive such a letter from the IRS, leading you to believe your identity has been stolen, respond immediately to the name, address or phone number on the IRS notice.
- If your tax records are not currently affected by identity theft, but you believe you may be at risk due to a lost wallet, questionable credit card activity, or credit report, you need to provide the IRS with proof of your identity. You should submit a copy of your valid government-issued identification – such as a Social Security card, driver’s license, or passport – along with a copy of a police report and/or a completed Form 14039, Identity Theft Affidavit. As an option, you can also contact the IRS Identity Protection Specialized Unit, toll-free at 800-908-4490. You should also follow FTC guidance for reporting identity theft at www.ftc.gov/idtheft
- Show your Social Security card to your employer when you start a job or to your financial institution for tax reporting purposes. Do not routinely carry your card or other documents that display your Social Security number.
- For more information about identity theft – including information about how to report identity theft, phishing and related fraudulent activity – visit the IRS Identity Theft and Your Tax Records Page, which you can find by searching “Identity Theft” on the IRS.gov home page.
Links:
Identity Theft and Your Tax Records
Suspicious e-Mails and Identity Theft
Department of Treasury’s Identity theft resource page
Federal Trade Commission’s (FTC) consumer Web site
YouTube Videos:
Phishing — Malware: English Spanish | ASL
Six Tax-Efficient Ways to Pay for Back to School Items
Aug 30th
Students going back to school can utilize a variety of tax-favored ways to pay for college tuition, books, supplies, and computers. Here’s six ideas for paying for school expenses that have varying degrees of tax efficiency:
1. Take cash out of a 529 College Savings Plan. Distributions from a 529 plan are tax-free as long as the funds are used to pay for tuition, room and board, books, supplies, and computer equipment and software.
To read the rest of this article by William Perez, please go to http://bit.ly/aSiUuj.
Ten Tips for Taxpayers Making Charitable Donations
Aug 26th
IRS Summertime Tax Tip 2010-21 http://bit.ly/aVjA6r
Did you make a donation to a charity this year? If so, you may be able to take a deduction for it on your 2010 tax return.
Here are the top 10 things the IRS wants every taxpayer to know before deducting charitable donations.
- Charitable contributions must be made to qualified organizations to be deductible. You can ask any organization whether it is a qualified organization and most will be able to tell you. You can also check IRS Publication 78, Cumulative List of Organizations, which lists most qualified organizations. IRS Publication 78 is available at IRS.gov.
- Charitable contributions are deductible only if you itemize deductions using Form 1040, Schedule A.
- You generally can deduct your cash contributions and the fair market value of most property you donate to a qualified organization. Special rules apply to several types of donated property, including clothing or household items, cars and boats.
- If your contribution entitles you to receive merchandise, goods, or services in return – such as admission to a charity banquet or sporting event – you can deduct only the amount that exceeds the fair market value of the benefit received.
- Be sure to keep good records of any contribution you make, regardless of the amount. For any contribution made in cash, you must maintain a record of the contribution such as a bank record – including a cancelled check or a bank or credit card statement – a written record from the charity containing the date and amount of the contribution and the name of the organization, or a payroll deduction record.
- Only contributions actually made during the tax year are deductible. For example, if you pledged $500 in September but paid the charity only $200 by Dec. 31, your deduction would be $200.
- Include credit card charges and payments by check in the year they are given to the charity, even though you may not pay the credit card bill or have your bank account debited until the next year.
- For any contribution of $250 or more, you must have written acknowledgment from the organization to substantiate your donation. This written proof must include the amount of cash and a description and good faith estimate of value of any property you contributed, and whether the organization provided any goods or services in exchange for the gift.
- To deduct charitable contributions of items valued at $500 or more you must complete a Form 8283, Noncash Charitable Contributions, and attached the form to your return.
- An appraisal generally must be obtained if you claim a deduction for a contribution of noncash property worth more than $5,000. In that case, you must also fill out Section B of Form 8283 and attach the form to your return.
For more information see IRS Publication 526, Charitable Contributions, and for information on determining value, refer to Publication 561, Determining the Value of Donated Property. These publications are available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).
Links:
- Publication 78, Cumulative List of Organizations
- Publication 526, Charitable Contributions ( PDF)
- Publication 561, Determining the Value of Donated Property ( PDF)
BBB Teaches Best Back-to-School Lesson: How Students Can Avoid Identity Theft
Aug 25th
College students have enough to worry about without falling prey to scammers looking to steal their identities and good credit.
“Identity thieves don’t care if you’re a struggling student and don’t have a penny to your name; sometimes all they want is to exploit your clean credit record,” says Angie Barnett, president and CEO of the Greater Maryland Better Business Bureau. “Young adults that establish good habits for monitoring and detecting fraud are laying a path that will help create a healthy financial road for the rest of their lives.”
A report on fraud showed that college students are the slowest to catch identity theft.
The National Consumers League and the Better Business Bureau have each put together some tips to keep your identity safe and get through the semester.
To read the rest of this article by Linda Doell, please go to http://bit.ly/c8Juyj.
How to Replace Six Vital Documents
Aug 24th
Could you produce your birth certificate, car title, or an old tax return at a moment’s notice?
You’re supposed to store vital documents in a fireproof box or keep them in a safe-deposit box, but how many of us actually do that? We may not need these papers often, but when we do need them, we really need them. You need vital documents to sell your car, travel overseas, apply for a job, get through an audit, refinance your house, and more.
The good news is that if you’ve lost important pieces of paper, you can replace them — and it might be easier than you think. Here’s how to replace six of the most important documents in your life.
To read the rest of this article by April Dykman, staff writer for Get Rich Slowly, please go to http://bit.ly/bg8V6o.
Employee vs. Independent Contractor – Seven Tips for Business Owners
Aug 23rd
IRS Summertime Tax Tip 2010-20 http://bit.ly/9jHRSQ
As a small business owner you may hire people as independent contractors or as employees. There are rules that will help you determine how to classify the people you hire. This will affect how much you pay in taxes, whether you need to withhold from your workers paychecks and what tax documents you need to file.
Here are seven things every business owner should know about hiring people as independent contractors versus hiring them as employees.
- The IRS uses three characteristics to determine the relationship between businesses and workers:
- Behavioral Control covers facts that show whether the business has a right to direct or control how the work is done through instructions, training or other means.
- Financial Control covers facts that show whether the business has a right to direct or control the financial and business aspects of the worker’s job.
- Type of Relationship factor relates to how the workers and the business owner perceive their relationship.
- If you have the right to control or direct not only what is to be done, but also how it is to be done, then your workers are most likely employees.
- If you can direct or control only the result of the work done — and not the means and methods of accomplishing the result — then your workers are probably independent contractors.
- Employers who misclassify workers as independent contractors can end up with substantial tax bills. Additionally, they can face penalties for failing to pay employment taxes and for failing to file required tax forms.
- Workers can avoid higher tax bills and lost benefits if they know their proper status.
- Both employers and workers can ask the IRS to make a determination on whether a specific individual is an independent contractor or an employee by filing a Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, with the IRS.
- You can learn more about the critical determination of a worker’s status as an Independent Contractor or Employee at IRS.gov by selecting the Small Business link. Additional resources include IRS Publication 15-A, Employer’s Supplemental Tax Guide, Publication 1779, Independent Contractor or Employee, and Publication 1976, Do You Qualify for Relief under Section 530? These publications and Form SS-8 are available on the IRS website or by calling the IRS at 800-829-3676 (800-TAX-FORM).
Links:
Publication 15-A, Employer’s Supplemental Tax Guide ( PDF )
Publication 1779, Independent Contractor or Employee ( PDF )
Publication 1976, Do You Qualify for Relief under Section 530? ( PDF )
Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding ( PDF )
Five Tax Tips for Recently Married Taxpayers
Aug 20th
IRS Summertime Tax Tip 2010-17 http://bit.ly/aTAVuk
Are you getting married this summer? If you recently got married or are planning a wedding, the last thing on your mind is taxes. However, there are some important steps you need to take to avoid stress at tax time. Here are five tips from the IRS for newlyweds to keep in mind.
- Notify the Social Security Administration Report any name change to the Social Security Administration, so your name and Social Security Number will match when you file your next tax return. Informing the SSA of a name change is quite simple. File a Form SS-5, Application for a Social Security Card, at your local SSA office. The form is available on SSA’s website at www.socialsecurity.gov, by calling 800-772-1213 or at local offices.
- Notify the IRS If you have a new address you should notify the IRS by sending Form 8822, Change of Address. You may download Form 8822 from IRS.gov or order it by calling 800–TAX–FORM (800–829–3676).
- Notify the U.S.Postal Service You should also notify the U.S. Postal Service when you move so it can forward any IRS correspondence.
- Notify Your Employer Report any name and address changes to your employer(s) to make sure you receive your Form W-2, Wage and Tax Statement, after the end of the year.
- Check Your Withholding If both you and your spouse work, your combined income may place you in a higher tax bracket. You can use the IRS Withholding Calculator available on IRS.gov to assist you in determining the correct amount of withholding needed for your new filing status. The IRS Withholding Calculator will even provide you with a new Form W-4, Employee’s Withholding Allowance Certificate, you can print out and give to your employer so they can withhold the correct amount from your pay.
