Articles of Interest
“The 12 Biggest Money Mistakes.” Monday, February 13, 2006 from Yahoo! Finance by Suze Orman.
“Trade With China: More Gain Than Pain for Americans.” Monday, February 20, 2006 from Yahoo! Finance by Ben Stein.
Common Deductions That Too Many People Miss
1. Noncash Contributions:
Donated items such as clothes, furniture, etc. are tax deductible. Be sure to get a receipt and use tools such as the Salvation Army Valuation Guide to estimate the contribution amount.
2. New Points on Refinancing:
Any points you pay to refinance your home can be deducted on a monthly basis over the life of the new loan.
3. Old Points on Refinancing:
All unamortized points on an old refinancing are deducted in the year of a new refinancing.
4. Health Insurance Premiums:
Any health insurance premiums you pay are potentially deductible. However, they must be added to your medical expense pot.. If you’re self employed and not covered by any other employer-paid plan, you can deduct 100% of your health insurance premiums above the line.
5. Educator Expenses:
If you’re a qualified educator, you can get an above the line deduction of as much as $250 for materials you buy in 2005.
6. Miscellaneous Expenses:
Expenses such as investment advisory fees, tax preparation fees, and unreimbursed mileage or business expenses can earn you tax benefits, but they must exceed 2% of your adjusted gross income.
Upcoming Financial Chaos Topic: Windfall Planning (In case you win the lottery or discover a rich uncle you never knew you had!)