Are you in the market to buy an expensive item like a new television? Or, maybe you are interested in going on vacation? Perhaps you need to make some much needed home improvements. You probably would look to satisfy
paying for any type of luxury purchase with a credit card. Some people even look to utilize the equity from their homes by taking out a second mortgage when paying for high-ticket items. As an alternative to acquiring high-interest
credit card debt or applying for a home equity loan, you can receive the money you are looking for by means of an unsecured personal loan.

Home Equity Loans vs. Unsecured Personal Loans
Although there are some great tax advantages associated with home equity loans, there are some excellent benefits to utilizing personal loans for your financing needs:

Immediately have accessibility to your money; usually within a few hours from when your application is remitted. Because of the entire closing process, it can literally take weeks for you to receive the financing from a second mortgage.

- Significantly lower borrowing amounts needed. With a
personal loan you can borrow as little as $100 but with a second mortgage you
may be required to borrow $30,000 or more.

- Less stringent credit requirements. Bad credit is OK with
personal loans whereas good credit is going to be required with a second
mortgage.

- Typically no closing costs associated with personal
loans.

- Unsecured loan programs are not only for homeowners.

Credit Cards vs. Personal Loans

Use a personal loan to eliminate your debt! With a personal loan, you can
consolidate all of your high-interest credit cards into one, simple to handle
payment. No longer will you have the stress of having to pay several credit card bills every month. You will also likely be reducing the amount of your monthly debt obligation since personal loan interest rates are usually lower than rates associated with credit cards

Apply For a Personal Loan From the Comfort of Your Home

Another amazing advantage of personal loans is that you are able to complete the entire process without ever leaving your home. Simply submit the online
application and have a loan officer contact you via email or phone to finalize
your request. The only additional requirements may be to fax some paperwork to verify income, residency and/or banking.

Overall, if you are looking to borrow $25,000 or less, unsecured loans are a better option than home equity loans or credit cards. There are many online unsecured loan providers out there. However, Choice Personal Loans is one of the premier online providers of good and bad credit personal loans. Choice has been providing affordable unsecured consumer financing to all fifty states since 1999; offering financing for every purpose including loans for computers, home improvements, car repairs….whatever your needs are! You can borrow as little as $100 to as much as $25,000. They even provide no credit check loans for up to $1500. Choice takes pride in being not just a lender but a provider of helpful information that will help educate consumers about everything related to financing and credit.

Debt consolidation Denver solutions have been becoming popular by the day amongst the fellow residents. These solutions can provide an ideal mix of debt management advice and best in class financial consultation to those who are burdened under piling debt concerns. Debt consolidation Denver solutions can be accessed in a typical brick and mortar or across the web. Online debt consolidation Denver solutions have witnessed unprecedented growth in a shorter pan of time. The increasing reliability on credit has triggered the need amongst the debtor base to look out for structured debt consolidation solutions on the go. Much appreciated aspects about a structured debt consolidation Denver solution is that it helps a debtor in managing his or her finances smartly on the go. Based on their risk profile, disposable income and savings they can easily channelize their investments and make a monthly EMI payment to offset debt. Such an arrangement can be provided by a typical debt consolidation Denver solution or through debt refinancing solutions on the go. With a structured settlement plan in place it becomes a lot easier for a debtor to manage his or her finances in a smarter manner.

Various debt consolidation and registered agencies can be sought out for in Denver while on is trying to gain from the debt consolidation Denver solutions on the go. The need of the hour is to assess ones risks and act in the manner accordingly. Unchecked debt can eat up liquidity and is slated to lead to financial concerns amongst one and all. One can easily get a professional help from debt consolidation Denver solutions in a smarter manner and power through their finances. The financial advisors would ideally key in the financial parameters pertaining to a profile of an individual before suggesting debt consolidation Denver quotes. Various service providers should essentially be sought out for while one is trying to consider debt consolidation in Denver. They can gain endlessly from the fluctuations in the interest rates, payment terms and other parameters in just about no time at all. As a result, debtors can easily get to maximize their profits in a neater manner. It is highly recommended to engage in a professional debt management and help agency in order to manage the debt consolidation end to end on the go. These solutions have been able to provide scalable benefits to one and all in shorter span of time on the go.

Guest Post provided by: Sarah

I’ve never owned a vehicle.

It’s awfully inconvenient to not be able to drive around. My commute takes twice as long via bus than if I were to drive. Going to grocery store is a pain, and I have to align buying toilet paper with the generosity of friends. Going out for dinner with my fiancée can take an extra 2 hours just to factor in the time it takes to walk to the bus stop, wait, take the bus, go to the restaurant, figure out when the next bus comes, bus home, etc. But how much am I willing to pay for the convenience of having a car? Would I pay $8535/year?

How Much Would a Car Cost Me?

First, I would have to buy a car. If I were to finance a car (most likely), I would be paying a large monthly fee. According to Money Central at MSN.com, the average car payment is $479. WikiAnswers puts it between $380 and 460. Finally quoting NADA.com, No Car Credit puts it at $400. That averages out to about $430. Let’s say that I’m a little more frugal than the average consumer, my monthly car payment could be about $350.

Of course, that’s only the beginning of the expenses I would incur with a car. What about gas? I did a little research, and according to Daily Fuel Economy Tip the average new car fuel economy in 2004 was 24MPG. The current average gas price in the states is $2.624/gallon, per ABC News. My daily commute would be 8.9 miles, so a monthly commuting distance of 356 miles. I could easily round that up to 500 miles/month for trips to the grocery store, visiting friends, etc. That’s a monthly cost of about $55, at best.

$817-937 according to RMIIA.org, though it depends widly on which state you live in. I live in BC, Canada, where the average is around $1079 CAN, so similar to the states average. I’m less than 25 and male, so I would be paying an expensive premium, around $150/month.

What else would I be paying for? What about potential repairs? Even if the car was brand new, I ought to be putting away at least $50 a month for eventual repairs, or car replacement. I can’t forget about car maintenance either. Oil changes, tire rotation, winter tires, anti-freeze, windshield wiper fluid, etc. That’s another $40 a month. If I do choose to drive to work, I have to park downtown. At $9-15+/day, that’s at least another $180 a month – just to park.

All told, that’s $8535/year, or $710/month for a vehicle. This can also be expressed as 79% of my housing costs, or 1/3 of my net income!

Perhaps this is just the pessimist in me. I could get a cheaper, older car, so I’d be paying less for car payments and insurance. It could be in perfect condition, and never require anything but minor maintenance. I could continue to bus to work, so I would save on parking. But even if I was saving $500 a month, I could continue to save money commuting by not having a car.

Can You Go Without a Car?

Do you think you can get to work without a car? For a lot of us, the commute to work is the largest use of our vehicle. If we can find a way to get to work without driving, we could save ourselves a lot of money. Your gas use will go down, and your insurance would as well. You’d save wear and tear on your vehicle, and you wouldn’t have to pay for parking. The only thing you give up without a vehicle is a little bit of time, and convenience.

I challenge you to check out your transit options to work. Can you take the bus? Bike? Carpool? Try it for a month. I found that when I borrowed a vehicle, going back to taking the bus was hard, because it was inconvenient. However, after a few weeks, I got used to it – and so can you. Tough it out for a month, and if it is still unbearable, I give you permission to switch back. See how much you can save for that month, and if it isn’t as bad as you thought it would be, consider keeping it up!

Not having a car isn’t for everybody. It is especially hard if you already own a vehicle, as it may seem a waste to have a perfectly good car sitting in your driveway. However, for me, saving $8.5k per year is worth it – at this stage in my life.

Some More Tips to Save Money Driving

• Learn to Drive Smarter

Trent from The Simple Dollar shares his lessons in fuel efficent driving. Are you the kind of driver who’s foot is always either on the gas or the brake? Did you know that coasting is a valuable tool in fuel efficient driving? This, and other tips, are shared from Trent’s experiences with his new Prius.

• Be Proactive

Don’t try to save money by ignoring oil changes, tire rotations, and regularly schedule maintenance. Skimping on this will cost you more in the long run. In addition, prepare in advance for roadside emergencies.

• Combine Trips

Don’t make one trip to the grocery store, one trip to the bank, and one trip to pick up the kids. Combine as many errands as possible into one trip. For the most efficient course, plot it out ahead of time using google maps. You can add as many stops as you need to, and Google will sort out the details for you.

• More Driving Tips

Still not enough? Here are 34 Ways to Save Money on Car Expenses, and here is an article I wrote about How To Save Money Commuting.

Little disclaimer… I own a car now. Summers just got to hot and winters just got to cold.

Image Source = World of Oddy

We are conditioned to think that the natural thing to do in entering adulthood is to buy your own home and start repaying a mortgage, coupled with recent government incentives many pursued the white picket fence and all that that involves, which they have been taught is the dream. However is owning your house really so great for your finances, or would you be better renting?

Should You Own Your House?

The decision to own your own house should come down to what you want out of life and whether you are truly a homeowner at heart, rather than what you think you should be doing. You could be best suited to owning your own home if you like stability in your life and you want to put down roots in the community. At the same time you will have to make sure you are eligible to own a home and apply for a home loan, and that you can budget for all of the expenses which come with being a homeowner in addition to your monthly loan repayments.

Consider the pros of owning your own home, such as:

• Before you have even made your first repayment on your property you will have equity in your home because equity is built when you owe less than the property is worth and if you have put down a 5% or 10% or even a 20% deposit then you have started to build equity and you will go on doing so as you make your repayments each month. Also you are not taxed on the equity you build on your property, as you would be on investment income. Even if you refinance to access that equity it is not taxed as extra income and you can use the funds however you wish for a holiday, home improvements or your next home.

• Property prices may seem to fluctuate significantly, especially in the wake of the property boom in the early noughties, as compared to the slowdown thanks to the Global Financial Crisis. However when you own your own home you need to look at it as a long-term investment because over 5 to 10 years your property is most likely to see positive growth. On average property prices double in value every 10 years and whether you see your property increased in value by 50% in one year and no increase at all in another year, over the course of your home ownership the value of your home will increase.

• If you are a first-time buyer there are often opportunities to save on some of the common costs of buying a home and you may be eligible for tax incentives or stamp duty concessions.

• When you own your own home you have the freedom to relax, renovate, paint and hang pictures however you choose, and you do not have to get approval from a landlord or lament the colour of your bathroom. It is our natural instincts to make the places we live our own and when you own your own home you have the freedom to express your tastes and make your home a place you really want to be.

At the same time there are cons to home ownership which you should consider, such as:

• The initial costs to buy your own home can be inhibitive for many people because there are expenses which can far exceed the loan deposit you need to provide. You will need to consider stamp duty, taxes, loan application fees and mortgage insurance – which protects your lender not you – to make sure you can afford to buy your own home.

• Owning your own home also comes with a myriad of ongoing maintenance costs such as council rates and water rates, property taxes and liability insurance. When you are renting these are all things your landlord would cover but when you own your own home they become your responsibility.

• It has been estimated that new homeowners will need to budget for around $200-$300 per month for home maintenance. This could be anything from new plants and new paint, to new taps or new window locks.

Should You Rent A House?

Most of us have rented a house at some stage in our lives however renting is often seen as a temporary solution before you buy your own home. However is there really any need to move from the rental cycle? After all you could be better suited to being a renter than being a homeowner if you like the freedom to move and travel without having to worry about home loan repayments or applying to your lender to pause your repayments. At the same time to truly be better off renting than owning your home you need to have the discipline to save the money you would normally be paying towards a mortgage and home maintenance. There is no doubt that renting is cheaper than owning but if you want to be in a better financial position you can’t become too comfortable in your lower monthly commitments.

If you are considering maintaining a rental lifestyle you could benefit because:

• While the property market shows growth overall in the long term, other investments can appreciate faster, even a simple savings account. For example if you were paying $2000 a month towards your mortgage, the same house would probably only cost you $1200 a month to rent. Therefore if you invested the $800 difference in a standard savings account you could build financial assets faster.

• In the example above if you were owning your home you would be paying a lot more than just the mortgage in a month however when you rent you are not responsible for spending time or money on maintaining the property. Also tenants insurance is much cheaper than homeowners insurance and your landlord remains liable if someone injures themselves in your home and decides to sue.

• Most rental contracts are only signed for a period of 12 months so at the end of that time you have the freedom to decide whether you want to stay, move to a different suburb or even travel and you don’t need to worry about covering the costs of the property when you leave because it is up to your landlord to find new tenants and cover his mortgage costs.

Before you get caught up in the freedom consider the cons of renting:

• You have no stability over the rent you are charged and if your landlord has made a bad decision about whether they have fixed or variable interest rates on their home loan then you could pay the price as they raise your rent to recoup their costs.

• You also won’t have the final say over whether you stay in your rental property or not because your landlord may decide to sell, they may decide they want to move into the property to retire or they may want you to move out so friends of theirs who are going through a tough time can move in. Whatever the reason at the end of the day the landlord is in control of the property and you can never really put down roots.

• There is also the risk that you are stuck with an irresponsible landlord and you can be living at their whim, waiting for them to find the time to come and fix problems with the house, and being governed by their rules of what you can and cannot do in the house.

The decision to own or rent is a very personal one, but you should consider your options with regards to your financial situation, your financial goals and your own personal needs for your life.

Alban is a personal finance writer. He provides useful information on how to make mindful investment decisions and choose the best home loan.

Debt is a part of life, but when debts careen beyond control to a point where you can no longer repay, filing for personal bankruptcy is a way out. However, before you file for bankruptcy, there are important repercussions you should consider, especially facts related to your life insurance premiums.

Bankruptcy and life insurance
If you own an existing life insurance policy, it is usually left untouched by the bankruptcy court, to protect the interests of your beneficiaries. If you own a permanent life insurance, you will be allowed to retain a portion of the cash value that has accumulated on it. How much you are allowed to retain depends on where you live, because the rules are different from State to State. If you have taken out a life insurance policy on someone else like your spouse or your kids, you will have to surrender the same to the court.

Bankruptcy will affect your life insurance rate.Most people file for bankruptcy because it wipes the slate clean and helps them to start over. It is common knowledge that a bad credit score will adversely affect life insurance premium rates. However, will bankruptcy improve the situation? Let’s explore the repercussions of bankruptcy on life insurance premium rates.

If you are already in deep debt, it makes sense to file for bankruptcy. Buying life insurance with a bad credit score is not a good idea because of the exorbitant premiums you will be charged, which in turn will worsen your financial situation. For someone in this situation, it makes sense to first file for bankruptcy, and then wait a while before applying for a life insurance.

It definitely won’t be easy then too, because life insurance companies see your bankruptcy as a lack of restraint, and being careless with your finances. They therefore have reservations about your ability to pay premiums. It usually takes about 7 to 10 years until your credit report will stop reflecting your bankruptcy.

Buying a life insurance policy after bankruptcy
Since life insurance is a purchase that can never be put off, waiting out for a decade until your credit report stops reflecting your bankruptcy is definitely not advisable. The better option is to buy a 10-year term life insurance policy. You will be paying higher premiums and it may turn out to be quite a struggle, but it is better than putting your family’s welfare at risk. The first few years on a policy are the most expensive for a life insurance company, and their high up-front costs make them very cautious when approving policies. As someone with a bad credit history, you will be considered a risky customer.

The good news is that there are term life insurance companies out there, who will look favorably on your case if they know that your bankruptcy has been completely discharged. The key is to find such companies. Luckily, with the advent of a host of online life insurance quote providers, it is not difficult to identify such companies. All you need to do is, fill up their online form as accurately as possible. Don’t forget to click ‘Yes’ when you are asked if you have filed for bankruptcy in the last 5 years. Based on the information you submit, you will be given quotes from companies that look most favorably on your bankruptcy and on other information you have submitted. These quotes are unbiased, genuine and correct because they are chosen from among hundreds of policies and reflect information in real-time.

Bankruptcy can be a very difficult experience, and you may be tempted to wait a while before getting your life insurance. However, you will risk putting your family going through dire financial hardships. Once your bankruptcy is taken off your credit report, you can request the life insurance company to review your policy, so that you can qualify for lower premiums.

I hear it all the time: “I want to save money, but I don’t know where to start.” This is a common complaint for many people who want to get their personal finances under control but can’t figure out how to begin. I’ve been in that position, and I’m here to tell you that the only way to do it is to take small steps toward financial freedom. With that in mind, here are a few simple tips designed to help you gradually get your house in order.

Pay yourself first. As soon as you get paid, take 10 percent of your earnings and put it in a savings account. This way you’ll be able to build up a fund that can be used for dedicated major purchases like a computer or in the event of an emergency. It’s important to do this as soon as you’re paid, before you feel the urge to start spending. You won’t miss the amount you take out, and you’ll be able to live on less.

Use a budget. This is a key. Make a list of your income and expenditures, and then see how much you have left over each month after rent, utilities, and other bills are paid. From there, you can start making cuts to your outgoing cash flow and increase the amount you keep. Start with luxury items (entertainment, shopping) and move up to major ones (consider switching your household to a family cell phone plan instead of multiple individual accounts). Once you’ve got your budget in place, stick with it. You’ll start to see the savings pile up almost immediately.

Cut the cards. This can be a tough one for some people. If you’re debt-free, fantastic; if not, stop adding to it. Cut up the cards and focus on paying down the debt until you’re in the clear. Once you do, you’ll be able to hang onto that cash.

Pack a lunch. It can be tempting to eat out all the time, especially during the work week, but one of the easiest ways to save money is to prepare a lunch at home to eat at the office. Plus, it’s healthier.

Change your purchases. In addition to eliminating some purchases, consider swapping them for different ones. For instance, replace brand-name snacks or drinks with generic ones, and look for store-brand medicines and services. This is a great way to keep buying what you need without overspending.

Start with these, and you’ll begin to save money right away.

This guest post is contributed by Emily Thomas, who writes on the topics of top online colleges. She welcomes your comments at her email Id: emily.thomas31@gmail.com.

Image Source = The Truth About

Debt is a part of life, but when debts careen beyond control to a point where you can no longer repay, filing for personal bankruptcy is a way out. However, before you file for bankruptcy, there are important repercussions you should consider, especially facts related to your life insurance premiums.

Bankruptcy and life insurance
If you own an existing life insurance policy, it is usually left untouched by the bankruptcy court, to protect the interests of your beneficiaries. If you own a permanent life insurance, you will be allowed to retain a portion of the cash value that has accumulated on it. How much you are allowed to retain depends on where you live, because the rules are different from State to State. If you have taken out a life insurance policy on someone else like your spouse or your kids, you will have to surrender the same to the court.

Bankruptcy will affect your life insurance rate.Most people file for bankruptcy because it wipes the slate clean and helps them to start over. It is common knowledge that a bad credit score will adversely affect life insurance premium rates. However, will bankruptcy improve the situation? Let’s explore the repercussions of bankruptcy on life insurance premium rates.

If you are already in deep debt, it makes sense to file for bankruptcy. Buying life insurance with a bad credit score is not a good idea because of the exorbitant premiums you will be charged, which in turn will worsen your financial situation. For someone in this situation, it makes sense to first file for bankruptcy, and then wait a while before applying for a life insurance.

It definitely won’t be easy then too, because life insurance companies see your bankruptcy as a lack of restraint, and being careless with your finances. They therefore have reservations about your ability to pay premiums. It usually takes about 7 to 10 years until your credit report will stop reflecting your bankruptcy.

Buying a life insurance policy after bankruptcy
Since life insurance is a purchase that can never be put off, waiting out for a decade until your credit report stops reflecting your bankruptcy is definitely not advisable. The better option is to buy a 10-year term life insurance policy. You will be paying higher premiums and it may turn out to be quite a struggle, but it is better than putting your family’s welfare at risk. The first few years on a policy are the most expensive for a life insurance company, and their high up-front costs make them very cautious when approving policies. As someone with a bad credit history, you will be considered a risky customer.

The good news is that there are term life insurance companies out there, who will look favorably on your case if they know that your bankruptcy has been completely discharged. The key is to find such companies. Luckily, with the advent of a host of online life insurance quote providers, it is not difficult to identify such companies. All you need to do is, fill up their online form as accurately as possible. Don’t forget to click ‘Yes’ when you are asked if you have filed for bankruptcy in the last 5 years. Based on the information you submit, you will be given quotes from companies that look most favorably on your bankruptcy and on other information you have submitted. These quotes are unbiased, genuine and correct because they are chosen from among hundreds of policies and reflect information in real-time.

Bankruptcy can be a very difficult experience, and you may be tempted to wait a while before getting your life insurance. However, you will risk putting your family going through dire financial hardships. Once your bankruptcy is taken off your credit report, you can request the life insurance company to review your policy, so that you can qualify for lower premiums.

With April 15th around the corner, it is easy to rush through your taxes if you are doing them yourself using a tax filing software program. Most software programs are designed to prevent mistakes, but they are not flawless. Here are a few common tax filing mistakes to look out for:

Overstating or Missing Tax Credits & Deductions

New tax credits are becoming available, however, many existing tax credits change annually. Every year taxpayers forget to take advantage of applicable tax credits. For example, if you replaced windows on your home in 2009 that are more energy efficient, then you could take advantage of the Residential Energy Credit. On the other hand, many taxpayers fail to comprehend that many of these tax credits are only to applicable to taxpayers at certain income levels. For example, the home-buyer tax credit allows a married couple (filing jointly) or individual to save up to $8,000 in taxes if they purchase a home by April 30th, 2010 or have a binding contract on or before April 30th, 2010 with a closing date by June 30th, 2010. However, this credit becomes phased out once a married couple earns $225,000 ($125,000 for single taxpayers). Make sure to visit irs.gov to read up on the details of available tax credits, if in doubt.

Filing A Tax Extension But Forgetting To Pay Taxes Due

Many taxpayers each year file tax extensions. A tax extension is automatic and will give a taxpayer until October 15th to file. However, many taxpayers do not understand that an extension to file is not an extension pay. In fact, the IRS should have about 90% of actual taxes owed by April 15th. If the IRS does not have 90% of taxes owed by April 15th, you will incur a failure to pay penalty up to .5% per month on any unpaid amount.

Not Adjusting the Making Work Pay Tax Credit (MWPC) by Any Economic Recovery Payment

If you received a stimulus payment in 2009, you need to deduct that amount from the Work Pay Tax Credit (if you qualify for it). For W-2 employees, the MWPC reduced withholding amounts and most companies received the new withholding tables last April. However, the tables did not accurately account for taxpayers with two jobs, social security recepients with a job, taxpayers receiving pensions, or taxpayers filing with an ITIN. Therefore, if you fail to account for the stimulus payment with regards to your MWPC tax credit, you could end up owing taxes or having your refund delayed.

Forgetting to Send A Payment If Taxes Are Due By the Due Date

If you find out you owe taxes, you can either deduct it right out of your bank account, if you are filing with a software program (like TurboTax), or you can print a voucher to make the payment. Ensure the payment is postmarked by April 15th, otherwise your payment will lower than the payment stated as the IRS will tack on failure to pay penalty.

Selecting the Wrong Filing Status

Make sure to select the correct filing status on your tax return. Your filing status is very important because it affects your standard deduction, applicable tax credits, and your total tax liability. Therefore, incorrectly selecting your filing status can also impact your refund.

Putting the Wrong Social Security Number On Your Tax Return

If you fail to put the correct social security number on your tax return when you mail it or eFile it the IRS will reject it. This can be a costly mistake because the IRS can reject applicable tax credits and deductions. It sounds like a pretty stupid mistake, but it is common.

Putting the Wrong Bank Routing or Mailing Address For Your Refund

When you file your tax return make sure you put the correct address on the form, especially if you are receiving a tax refund. Another common mistake for taxpayers is putting the wrong bank account number or bank acount routing information for their refund.

Failing To Report All Income

Make sure to report all income. If you forget to report income you will incur additional penalties and interest on taxes due. This includes even reporting gambling winnings, tips, and unearned income.

Ignoring Disallowed Losses

If you regularly trade stocks or securities, make sure you do not include disallowed loses in your capital gains calculation. A loss on a security is disallowed if, within the period starting thirty days before the loss sale and thirty days after, you acquire the same security.

Failing to Save Receipts and Your Tax Return

Make sure you keep a copy of your tax return and any receipts. Generally, the IRS cannot audit a tax return filed more than 3 years from the due date. Certain exceptions to this rule apply if you understated your income by 25% or more or your tax return was deemed fraudulent by the IRS. Having your receipts is a good way to prove to the IRS or your State taxing authorities that a specific deduction was justified. It is a little upside down, but with an audit, you are guilty until proven innocent.

Not Signing and Dating Your Tax Return

Fortunately, if you are using TurboTax or some other software program, and you are submitting your return electronically, you cannot submit it without first electronically signing off the program. However, if you are mailing your tax return and you forget to sign it, the IRS considers your tax return unfiled.

This is a guest post by Manny Davis. Manny is President of Back Taxes Help, LLC, an IRS tax settlement firm that helps business and individual taxpayers resolve major IRS problems like tax levies, tax liens, tax penalties, tax audits and more.

With April 15th around the corner, it is easy to rush through your taxes if you are doing them yourself using a tax filing software program. Most software programs are designed to prevent mistakes, but they are not flawless. Here are a few common tax filing mistakes to look out for:

Overstating or Missing Tax Credits & Deductions

New tax credits are becoming available, however, many existing tax credits change annually. Every year taxpayers forget to take advantage of applicable tax credits. For example, if you replaced windows on your home in 2009 that are more energy efficient, then you could take advantage of the Residential Energy Credit. On the other hand, many taxpayers fail to comprehend that many of these tax credits are only to applicable to taxpayers at certain income levels. For example, the home-buyer tax credit allows a married couple (filing jointly) or individual to save up to $8,000 in taxes if they purchase a home by April 30th, 2010 or have a binding contract on or before April 30th, 2010 with a closing date by June 30th, 2010. However, this credit becomes phased out once a married couple earns $225,000 ($125,000 for single taxpayers). Make sure to visit irs.gov to read up on the details of available tax credits, if in doubt.

Filing A Tax Extension But Forgetting To Pay Taxes Due

Many taxpayers each year file tax extensions. A tax extension is automatic and will give a taxpayer until October 15th to file. However, many taxpayers do not understand that an extension to file is not an extension pay. In fact, the IRS should have about 90% of actual taxes owed by April 15th. If the IRS does not have 90% of taxes owed by April 15th, you will incur a failure to pay penalty up to .5% per month on any unpaid amount.

Not Adjusting the Making Work Pay Tax Credit (MWPC) by Any Economic Recovery Payment

If you received a stimulus payment in 2009, you need to deduct that amount from the Work Pay Tax Credit (if you qualify for it). For W-2 employees, the MWPC reduced withholding amounts and most companies received the new withholding tables last April. However, the tables did not accurately account for taxpayers with two jobs, social security recepients with a job, taxpayers receiving pensions, or taxpayers filing with an ITIN. Therefore, if you fail to account for the stimulus payment with regards to your MWPC tax credit, you could end up owing taxes or having your refund delayed.

Forgetting to Send A Payment If Taxes Are Due By the Due Date

If you find out you owe taxes, you can either deduct it right out of your bank account, if you are filing with a software program (like TurboTax), or you can print a voucher to make the payment. Ensure the payment is postmarked by April 15th, otherwise your payment will lower than the payment stated as the IRS will tack on failure to pay penalty.

Selecting the Wrong Filing Status

Make sure to select the correct filing status on your tax return. Your filing status is very important because it affects your standard deduction, applicable tax credits, and your total tax liability. Therefore, incorrectly selecting your filing status can also impact your refund.

Putting the Wrong Social Security Number On Your Tax Return

If you fail to put the correct social security number on your tax return when you mail it or eFile it the IRS will reject it. This can be a costly mistake because the IRS can reject applicable tax credits and deductions. It sounds like a pretty stupid mistake, but it is common.

Putting the Wrong Bank Routing or Mailing Address For Your Refund

When you file your tax return make sure you put the correct address on the form, especially if you are receiving a tax refund. Another common mistake for taxpayers is putting the wrong bank account number or bank acount routing information for their refund.

Failing To Report All Income

Make sure to report all income. If you forget to report income you will incur additional penalties and interest on taxes due. This includes even reporting gambling winnings, tips, and unearned income.

Ignoring Disallowed Losses

If you regularly trade stocks or securities, make sure you do not include disallowed loses in your capital gains calculation. A loss on a security is disallowed if, within the period starting thirty days before the loss sale and thirty days after, you acquire the same security.

Failing to Save Receipts and Your Tax Return

Make sure you keep a copy of your tax return and any receipts. Generally, the IRS cannot audit a tax return filed more than 3 years from the due date. Certain exceptions to this rule apply if you understated your income by 25% or more or your tax return was deemed fraudulent by the IRS. Having your receipts is a good way to prove to the IRS or your State taxing authorities that a specific deduction was justified. It is a little upside down, but with an audit, you are guilty until proven innocent.

Not Signing and Dating Your Tax Return

Fortunately, if you are using TurboTax or some other software program, and you are submitting your return electronically, you cannot submit it without first electronically signing off the program. However, if you are mailing your tax return and you forget to sign it, the IRS considers your tax return unfiled.

This is a guest post by Manny Davis. Manny is President of Back Taxes Help, LLC, an IRS tax settlement firm that helps business and individual taxpayers resolve major IRS problems like tax levies, tax liens, tax penalties, tax audits and more.

With the time to file our taxes fast approaching we are faced with different methods of doing so. Many people will take the option of filing their own taxes, without the aid of any adviser, which can make the process inexpensive.

A great option for people, who do file their own taxes, would be to use QuickTax 2009. QuickTax is the #1 selling tax software in Canada, partially due to the many features it offers.

The standard version of QuickTax 2009, is perfect for the typical Canadian who is interested in doing taxes themeselves. The standard edition is quick easy and to the point. It literally took me 15 minutes to do my taxes in a test run with the software. However, there is also a premium version, which does provide some additional benefit for investors.

To distinguish between what to get, consider the complexity of you’re your tax return, if it is simple, then the basic version would be your best choice. Obviously, if you have income coming from different sources it might be a benefit for you to try out the premium version.

QuickTax 2009 is easy to install; with just a few clicks you will have the software installed.

QuickTax 2009 includes a great feature called “EasyStep Interview”, which provides help through every step of your return. It honestly is simple, they ask you legitimate questions that can help you get more money on your return.

Another brand new process is the Life changing profiling within the EasyStep Interview. It points out any tax implications based exactly on what happened in 2009.

With the Basic version, you receive support by email and phone, also step-by-step guidance that includes government-approved forms and any calculations, which are guaranteed to be accurate.

Realistically, the other versions of QuickTax 2009 are for people who are either self employed or have several investments.

QuickTax 2009 is definitely a great choice for anyone who is filing their tax returns. With QuickTax at your disposal, you will definitely be able to get your tax returns accomplished with little to no difficulty.

Prize

This brings me to my main point. I am giving away one copy of QuickTax Standard 2009 to you our readers! For more information click here.