Financial 411 for Monday, March 26
On Monday, March 26 our panel answering your questions included:
~Ted Sarenski, Blue Ocean Strategic Capital, 471-2672
~Grace Ghezzi, Benefit Consulting Group, 474-1707 ext 460
~Richard Jenkins, Diversified Capital Management 472-6221
Among our topics:
~Closing costs. Whether on a timeshare or a home or business, closing costs are not tax deductible. The only part of this kind of purchase that you might get a break on, is on the municipal taxes that you're paying on the property.
~Audits. About the same number of cases is being audited this year: 1.1% of returns filed. One area being focused on, Earned Income Tax Credit (EITC) claims. Small business owners also have a slightly better chance of being audited, as do people with incomes of $200-thousand to a million.
~Extensions: If you cannot get your paperwork done by the April 17th deadline, you can file for an extension...but it's an extension to file, not an extension to pay! If you owe, expect to pay what you owe plus a penalty plus interest!
~Where's my refund? The IRS website - - www.IRS.gov --can help And so can the new smartphone app: IRS2Go
~Need a last-minute tax break? You can contribute a total of $5,000 annually to your IRA. $6,000 if you're over 50. If you didn't put that much in last year, you can do a catch-up contribution right up til tax filing time.
~Taxable?
Social Security has guidelines:
Add up all your income, plus one half of your social security. If it's over $25,000 for single or over $32,000 for married, you pay tax on the lesser of half the social security. If the total is over $25,000 (32,000 married) you pay taxes on one half of the excess above that amount. If the totals are over $34,000 single/$44,000 married, then it's 85% instead of half. (www.IRS.gov has worksheets and explanations!)
Life Insurance:
If you cash in a policy...the gain is taxable. (example: if you get $15,000 but have contributed $10,000, then $5,000 is taxable)
If it's worth less than what you've contributed, you don't get a break.
~New York State tax help:
Check the state's tax website for lots of help, including real live people on phones
If you make less than $50,000 there's free tax help through VITA (Volunteer Income Tax Assistance) ---the website will help you find a location near you.
If you make less than $57,000 you can also electronically file from home computers with free file.
Next Monday, we'll be talking about life insurance. Give us a call, 5 - 6:30pm at 477-9480 or email money@cnycentral.com
