Year End Tax Tips for Everyone

Happy Monday!  With 2013 coming to a close, almost, I thought I would focus on some end of  the year tax tips.

In general, there are some end of the year tax tips that can be done to manage your income taxes.  For example you may want to try to earn additional income in 2013 or perhaps you want to defer (push ahead) income to 2014, depending upon what tax bracket you are in.  These tactics can be used to optimize your tax liability between 2013 & 2014.

Here are some more tax tips for individuals:

• Accelerate or defer expenses.  Much like the income tip I mentioned above.  Making that major purchase in 2013 may benefit you more if you hold off til 2014.  Look at the benefits, tax credits and liability before you decide. 
• Are you thinking of getting married?  I would look at your tax liability as a married couple before you decide.. you may want to postpone til after the new year and then you have the rest of they year to plan or recover any benefits you may have lost.
• Contribute to your IRA, 401k, flexible spending account all of these types of contributions are tax exempt. IRA up to a certain amount - about $5500 this year I think.
• Own rental property?  Now may be the time to purchase that energy efficient appliance and get the tax credit, plus all the money you put into that rental property is a tax write off which helps to counter balance the income you received throughout the  year.
• Donate to a charity!  This is the best way to get a tax deduction.. this is like getting the best of both worlds.. save money by giving to others.  This is a win win situation and you feel great!  Just be careful there is certain criteria that must be met not all donations are tax deductible.  You can claim up to $50 each for bags of clothing that you might donate .. for example.  
• Speak to your CPA or attorney.  Just to be sure, I would consult your CPA or attorney to discuss which advice is best for you as an individual.

Here are some tips for Retirees:

• Do a dry run on your tax return:  Retiring can have a major impact on your finances.  It is very helpful to start planning now.  Do a practice return now using a free online tax software.   All the techniques I offered for individuals will benefit you if you are retiring or retired.
• Check and double check your withholding instructions on Social Security, pensions and any early withdrawals.  If it is not accurate or enough you may pay heavy penalties and interest.  It is really important to check with your estate planner or CPA to be sure.

Here are some money saving tips for small business owners:

• Spend some money - If you make any purchase before the end of the year, you may be able to deduct most of your purchases - for things like computers, furniture, software, vehicles, equipment and more.  Even if you don't think you have to, you may want to review.  Then check with your CPA to see if Section 179 deduction is still available.
• Hiring a returning or disabled veteran - The returning heroes tax credit provides businesses that hire unemployed veterans a tax credit up to $9,600 per veteran.  Read more:  Returning Heroes and Wounded Warrior Tax Credits.
• Defer your income - much like for individuals - you may want to review this ahead of time with your CPA or accountant.
• Set up a retirement account or fund one before the end of the year.  Check with your plan administrator for limits and deadlines for different types of plans.  Contact us if you need a referral.
• Contribute to charity.
• Keep your records straight.
• Speak to your CPA or attorney.  Just to be sure, I would consult your CPA or attorney to discuss which advice is best for you as a small business owner.
  

Sources for information above:  

http://www.sba.gov/community/blogs/community-blogs/small-business-cents/7-money-saving-year-end-tax-tips-small-business

http://taxes.about.com/od/taxplanning/qt/year_end_tips.htm

http://www.marketwatch.com/story/year-end-tax-tips-for-retirees-and-pre-retirees-2013-11-21

Winter Driving Safety Tips

Some say it is going to be a rough winter.  I have lived in NY all my life (which is over 4 decades) and so I am used to it.  However, not all of us are.  Here is some advice for those not experienced in driving in the winter snowy months.  The best advice for driving in bad weather is not to drive at all if you can avoid it.  If you have to drive make sure your car is prepared, and you know how to handle road conditions.

Start With A Checkup:

· Check ignition, brakes, wiring, hoses, and belts

· Change and adjust spark plugs

· Check air, fuel and emission filters

· Inspect the distributor

· Check the battery

· Check tires for air, sidewall wear, and tread depth

· Check antifreeze levels and the freeze line

Necessary Equipment:

An emergency situation on the road can arise at any time and you must be prepared.  In addition to making sure you have the tune up, a full tank of gas and fresh antifreeze you should also carry the following items in your trunk:

· Properly inflated spare tire, wheel wrench and tripod-type jack, tow and tire chains

· Shovel, bag of salt or kitty litter, woolen blanket

· Jumper cables, tool kit, non perishable food items, hard candy etc.

· Working flashlight and extra batteries, two flares

 If You Become Stranded:

· Do not leave your car unless you know exactly where you are, how far it is to possible help, and are certain you will improve your situation.

· To attract attention, light two flares and place one at each end of the car at a safe distance away.  Hang a brightly colored cloth from your antenna.

· If you are sure the car’s exhaust pipe is not blocked, run the engine and heater for about 10 minutes every hour or so depending upon the amount of gas in the tank.

· To protect yourself from frostbite and hypothermia use the woolen items and blankets too keep warm.

· Keep at least one window open slightly. Heavy snow and ice can seal a car shut.

· Eat a hard candy to keep your mouth moist

For more safety  information visit the National Safety Council website at http://www.nsc.org

We offer discounts for reduced use vehicles as well - those vehicles only driven during winter or summer months.  Visit us on the web at www.tiains.com for a free quote or contact us at one of our three locations!

October is a VERY Busy Month!

October is a very busy month.  October is:

• National Disability Employment awareness month.

• October is bullying prevention month

• National Substance Abuse Prevention month

• National Breast Cancer Awareness month

• National Farm to School month

• National Dental Hygiene month

• Domestic Violence Awareness month

• National Information Literacy Awareness month

• National Chiropractic Health Month

• National Cyber Security Awareness Month

• National Community Planning Month

• National Pit Bull Awareness Month

• National Home Security Month

• national women in business month

• National Principal's Month

• National Car Care Month

• National Vegetarian Awareness month

• National Craft Making month

and let's not forget food:

• National Apple Month

• National Applejack Month

• National Caramel Month

• National Cookbook Month

• National Cookie Month

• National Dessert Month

• National Pasta Month

• National Pickled Peppers Month

• National Pizza Month

• National Popcorn Poppin’ Month

• National Pork Month

• National Pretzel Month

• National Seafood Month

• National Nut Month

and then there are special weeks too all in OCTOBER:

• National Mental Illness Awareness week

• National Fire Prevention week

• National Hospital & Health-System Pharmacy Week

• National Physician Assistants week

• National School Lunch week

• National Save for Retirement week

• National Primary Care week

• National Chemistry week

• National Design week

• National Veterinary Tech week

• National Health Education week

• National Estate Planning week

There are a lot more, especially weeks designated for more food, but you get the idea.

So I personally think we got a little carried away.    I looked quickly at the other 11 months out of the year and they are not so busy... Maybe we should have spread these out a little?  

You can click any of  the links above to get more information on any of the specific "holidays".

We are open for all of these except Columbus Day on October 14th which is not mentioned above.. I did not find one post regarding Columbus when searching for "October is National".  That makes me kinda sad.

Visit us online www.tiains.com.

Fire Prevention Week 2013

This is national fire prevention week.  There was actually a presidential proclamation declaring this week in 2013.

Cooking fires are the leading cause of home fires with heating related fires close behind.  Here are some tips to help prevent and put out fires:

1) Make sure you have a smoke detector in every room of your home, but not in the kitchen
2) Unplug appliances when not in use
3) Don't use metal in the microwave, beware dinnerware sometimes has metal paint on the trim
4) Keep your stove & oven clean and in good repair
5) Be extra careful when cooking with oil or grease - be sure you don't over heat or over fill
     NEVER pour water on a grease fire, use sand, baking soda or a fire extinguisher.
6) Be sure all flammables are kept away from the stove & oven - like pot holders, dish & paper towels
7) Around the holiday, if you have a real tree, water daily and keep several feet from heaters.
8) Be sure your chimney was cleaned before the start of the heating season
9) Have your existing furnace inspected and maintained by a professional regularly

Follow this CHAIN:

CALL 911 for help
HAVE a fire plan in place - arrange meeting place away from the home - and have fire drills
ASK your local fire department for window stickers to alert there are children or elderly in the home
INSPECT your portable fire extinguisher & keep in an easily accessible spot - Every home should have one.
NFPA the National Fire Protection Association has many more tips visit them & make a plan.

We also have more information direct from many of the fire insurance companies we work with.  They want to help you prevent fires.  Visit us on the web at http://www.tiains.com , stop in to one of our three locations or give us a call for more info or to get a free quote for fire insurance.

Government Shutdown

If your like me you're trying to figure out what's open and what's closed with this government shut down.  I contacted the USDA and they were closed yesterday. The voice mail said they were out of the office no return date set and they will not be checking email or voice mail while on furlough.  However, I am still getting mail every day. Both are Federal departments of the United States Government.

So here is a condensed list of what's what:

USPS, otherwise known as MAIL, still continues to be delivered.  The reason for this is because the USPS does not receive money from taxes it is funded by its own income producing sources, like postage for example.

National Parks and National Museums, are all closed.  This has a trickle effect on the economy.  If you are located in the eastern part of the state, for example, it is peak season for tourists hoping to catch a glimpse of the beautiful fall foliage.  However if you wanted to stay in a state park you may have cancelled your trip and other local businesses are losing out because your are not there to eat at their diner or shop at their gift shop.

Air Travel, thankfully Air Traffic Controllers and airport security  are not on furlough... can you imagine?? Unbelievably though, federal plane INSPECTORS are on furlough as well as some aircraft repair stations. The International Embassy's are still open and passports and visas are still being processed.  Again because fees are generated from these directly.

If you collect social security, unemployment or medicare you are still receiving your benefits. Federal courts continue to operate for the time being, however non essential personnel could be furloughed if the issues at hand are not resolved quickly. Women Infants and Children (WIC), Food Stamps and school lunch program only has enough funding to make it through October it has been reported and they may cease at that time.

Another department that is experiencing the shutdown directly is the Food Safety Division.  If a recall or outbreak occurs the department said they could handle it but the people who investigate the outbreaks are on furlough! There won't be any inspectors visiting anytime in the near future either to be sure your facility is clean.  However, Meat inspectors still continue to be in meat packing plants every day, as required by law.

Military, Law Enforcement, Homeland Security, Prisons, NASA, National Weather Service are still pretty much operating as normal, some non essential employees have been furloughed.

Loans - If you are trying to purchase a home you can expect a delay and if the shutdown continues it will be worse.  The reason is that they banks require tax data.   Unfortunately the IRS will not be processing any taxes or conducting audits during the shutdown. The applications for FHA mortgages and government loans for small businesses have been shut down.

So that's the abbreviated version.  If you have questions I would suggest calling the IRS or the department in question, but in most cases you won't get any answer.  If you try going to many of the links I provided, same thing.  Sorry were closed.

Here is a link that does work to get some more detailed information on the departments and programs affected by the shutdown and those that remain open.  You also can go to:  http://www.usa.gov/

Visit us on the web at www.tiains.com.

Disaster Preparedness

I recently came across the reality show Doomsday Preppers on the National Geographic Channel.  I have to admit I was hooked well for a hour or so.   Some people take this to the extreme - or so it seems anyway. However, It made me stop and think.  I thought about what I would have or do if I suddenly had no power for more than a few hours.  I would have no water, no can opener, no stove, no microwave. I have a family and just to be safe I started taking a few simple precautions.  Not building an underground shelter but setting a side a few simple supplies in case my family and I should need them.

Travelers Insurance has a wealth of helpful information on their website and anyone with an internet connection can access it.  There are several other sites available...some perhaps not so reputable.  I would stick to Insurance companies, and government sites like the CDC  and of course the Department of Homeland Security  and lastly FEMA .

If you don't want to read up, here are a few simple things you can do:

1) Get a couple of gallon jugs of spring water at your next trip to the store.  They are usually less than $1 each.  They suggest a gallon of water per person per day.  

2) Stock up on extra can goods (already cooked) like beans, soup, raviolis, fruit, etc.  The best way is to purchase them with the pull tab tops.

3) Non-electric can opener

4) Portable battery operated radio

5) Batteries

6) Blanket (ideally one for every person in the household)

7) Matches in a zip lock bag

8) First aid kit

9) Flashlight (rechargeable that do not need batteries is best)

10) Dust masks, these are really inexpensive and can be purchased at even the dollar store

11) Baby wipes, garbage bags and twist ties

12) Infant formula, diapers, baby food

13) Prescription medications, vitamins, and glasses

14) Some basic tools, wrench or pliers, screwdriver, hammer, utility knife

Of course there are lots of variations on this and you can find them by checking out the links I provided.

I gathered as much as I could and threw it in a backpack.  Hopefully I will never need to use this in my lifetime, but I am prepared at least for a couple days.

If you have questions or need more information go to www.tiains.com or stop into one of our three locations. We would be happy to print you out a checklist to help you be prepared.

Want to save money on your car insurance?

Everyone wants to save money on their car insurance.  There are thousands of factors that figure into how much someone pays for their car insurance.  Your driving record, location, claims history, and how long you have been insured are just to name a few. Here are a few tips and discounts usually available:

1)      Defensive Driving:  This discount saves you 10% on the liability and collision portion of your insurance for 3 years and it doesn’t matter who you have your car insurance with!  If you take the course you get the discount.  If you have more than one vehicle you get the discount PER vehicle.  If you have more than one driver on your policy and they take the course they get the savings too!  Great way to save!  You can now also take the course online.  Instead of sitting in a classroom most of the day, go to http://www.tiains.com and sign-up it costs less than $40 and you can start and stop it at anytime and have up to 30 days to complete!

2)      Multi-policy Discount:  If the company you have your car insurance with sells home, mobile home or renters insurance and you take out one of these policies with them, it is very likely that you will receive the multi-policy discount. Erie Insurance offers the multi-policy discount on the home, renters or mobile home and the auto so that’s double the savings!  Go to http://www.tiains.com and ask for a free Erie quote to see how much you can save.

3)      Youthful Drivers:  Do you have a youthful driver on your policy?  Erie insurance gives THREE discounts to youthful drivers if they are insured with you on your auto policy.  The driver training discount if they took drivers education. The youthful longevity discount, if you and your inexperienced operator are claim and violation free. There is a 16 minute video the youthful drivers can watch online or in one of our three offices from the Insurance Institute for Highway Safety (IIHS). Lastly, the college student discount available for part-time or full-time college students away at school with out a vehicle.

4)      Multi-vehicle discount: If you have more than one vehicle and insure them together you may be eligible for a multi-vehicle discount.  With Erie and with some other companies a snowmobile, four-wheeler, classic car, dune buggy, RV or utility trailer, all qualify!

5)      Senior Discount:  Most car insurance companies offer senior discounts for drivers over 55.

6)      Car Equipment Safety:  Most car insurance companies offer discounts for factory installed air bags, anti-theft devices (like alarms) and anti-lock brakes on all four wheels.

7)      Safe Driver Discount: Some carriers offer safe driver discounts for no tickets, accidents, or claims in the last 5 years.

We are independent agents and can shop around for you with all 7 of the auto insurance companies we work with – many of them offer property coverage as well.  Go to www.tiains.com and get a free quote!