Online Tax Advice From Tax Advisers

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From deductions to tax credits, WalletPop experts answer your questions. Get the tax advice you need.

Taxpayers using free e-file system get refunds just as fast as loans

Sarah Coffey Aug 13th 2010 @ 6:16AM EST Filed Under: Tax, Tax - Advice, Tax - Online, In the News

Taxpayers using the federal government's e-file system can get their cash refunds within 10 days, or nearly as quickly as the short-term loans offered by some tax preparers that cost up to 25 percent of the proceeds. So take that, H&R Block and Jackson Hewitt!

Anyone with an adjusted gross income of $57,000 or less can use the FREE online tax preparation site maintained by the Internal Revenue Service. That's about 70 percent of all U.S. filers, according to the IRS.

The agency can process a return and issue a refund within 10 days, Commissioner Doug Shulman says. That's down from as long as 8 weeks in prior years.

"Refund Anticipation Loans are often targeted at lower-income taxpayers," Shulman said. "With e-file and direct deposit, these taxpayers now have other ways to quickly access their cash."

So next time tax season rolls around, use the IRS website to file and get some cold, hard cash delivered quickly to your bank account without paying high fees for a short-term loan.

WalletPop experts answer your questions on the cost of career changes and health care

Lan N. Nguyen Jul 28th 2010 @ 3:00PM EST Filed Under: Career, Tax - Advice

It's eight months before tax season, but our experts are already on hand to tackle your personal finance questions. Leave a comment down below and we'll get on it. Here, the experts help readers with questions about changing careers, taxes and health care.

Question: I am weighing a career change into nursing and will need to apply for financial assistance, as I have been unemployed for the past year. Given what nurses make the first few years, how much of a debt load can I afford to take on? I do not have any outstanding debt and have very little in savings. Besides student loans, what other kind of financial assistance could a nursing student get?
--Thien, New York City

Answer from David Alexander, president of Soliant Health, a health care staffing agency: Financial issues are very important to weigh when deciding on a career change. Given that you don't have debt now, and a nurse makes about $50,000 in the first year, you want to be careful to take on just enough to get your degree. As with anything, it pays to check out a variety of schools to see what best suits your needs. Different schools have different tuition rates and many, especially in the medical field, get more than their fair share of scholarship money because health care institutions tend to be notable charitable recipients. Check in directly with the dean's office at each school to dig further into financial aid and scholarships.

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5 things you can do now to get ready for huge tax hikes in 2011

Kelly Phillips Erb Jun 11th 2010 @ 8:00AM EST Filed Under: Tax, Tax - Advice

In less than six months, taxes for many Americans are going up. Tax cuts originally signed into law by former President Bush are set to expire at the end of 2010 unless Congress makes a change in the Tax Code. Unfortunately for taxpayers, 2010 is also a significant election year, which, if history has taught us anything, means that Congress is unlikely to do much at all. If the law stays the same, on January 1, 2011, you can expect that the highest federal income tax rate for individuals will increase to 39.6% from 35%; capital gains tax rates will rise to 20% and dividends will lose their tax favorable status and retreat back to ordinary income status.

Even worse, state and local governments are struggling to make budgets balance. A whopping 45 states reported receiving less revenue in 2009 than in 2008, a trend that states can't sustain in 2010. Last year, at least 10 states considered major tax increases and others sought to increase or expand the tax base by hiking sales taxes or imposing excise taxes on such items as cigarettes and soda.

How can you avoid extra hits to your wallet in 2011? Here are five tips to consider:

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WalletPop experts on co-signing deeds, prescriptions under health reform, and college savings

Lan N. Nguyen May 19th 2010 @ 5:00PM EST Filed Under: Home, Saving Money, Health, School, Tax - Advice

Unsure if you should co-sign a deed? Trying to understand how the new health care law will affect prescription drugs? Uncertain if you should start a 529 college-savings plan now that you have a child? WalletPop experts tackle these questions and give it to you straight.

Question:

My husband and I are being added onto a deed by the title company preparing a refinance closing for my parents. The lender requires us to be on the deed to prove we own this asset, in order to co-sign on the refinance mortgage documents. Will this transaction trigger a taxable event for either party?
--Beverly

Continue reading WalletPop experts on co-signing deeds, prescriptions under health reform, and college savings

Planning for the future: estate planning 101

Lan N. Nguyen May 1st 2010 @ 3:00PM EST Filed Under: Wealth, Retirement Advice, Tax - Advice

Tax season is over, so now is the time to start securing your family's financial future. And you don't need to be a millionaire to do estate planning.

"Estate planning isn't just for the rich," says Frank Armstrong, founder of Investor Solutions, Inc. and co-author of "Save Your Retirement: What to Do If You Haven't Saved Enough or If Your Investments Were Devastated by the Market Meltdown." "Everyone should insure that the distribution of their assets is as efficient as possible. But, estate planning includes 'living wills,' power of attorney in case of disability, gifting during life, proper designations for insurance, IRA and qualified plan assets and many other contingencies."

Here are five things you should do that will stand the test of time:

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WalletPop experts discuss bankruptcy, taxes and IRAs

Lan N. Nguyen Apr 28th 2010 @ 4:30PM EST Filed Under: Credit, Bankruptcy, Tax - Advice

The Dow is hovering in the 11,000s, and consumer confidence was up in March. Still, experts say the economy remains a mixed bag of good news, bad news. Daily bankruptcy filings in March, for example, totaled nearly 6,890, an 11.6% increase from February, according to Credit Slips. And who can forget the high unemployment rate?

WalletPop experts respond to your burning questions about bankruptcy, inheritance and IRA conversions.

Question:
It will be five years in December that we filed for Chapter 13 bankruptcy from a lawsuit. When will our credit rating be cleaned out, so we can fill out Visa card applications without explaining that we did file for bankruptcy?
-- Kevin

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Personal finance questions answered by WalletPop experts

Lan N. Nguyen Apr 21st 2010 @ 3:00PM EST Filed Under: Tax - Advice

April 15 has come and gone, but tackling personal finance questions never ends. Our WalletPop experts remain on hand to answer your burning questions about home, taxes and inheritance.

Question: I am a first-time home buyer in this hectic market. I have heard that the first-time home buyers credit will be extended to houses closing until June 1, 2010. The original date for closure cutoff was April 30, 2010. Any truth to the June deadline extension?

--Charlie

Answer from Barbara Weltman of The J.K. Lasser Institute: The first-time home buyer credit was extended through April 30, 2010. For anyone who is in contract by this date, you have until June 30, 2010, to close (and take title to the home) so you can claim the credit.

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Think of your tax refund as a free loan to government

Jean Chatzky Apr 19th 2010 @ 4:00PM EST Filed Under: Tax, Tax - Basics, Tax - Advice

Are you still reeling because you had to write a big tax check to Uncle Sam? Are you still elated because the government wrote one to you? Believe it or not, in both cases, something went wrong.

It's less of a shock to the system when the IRS is paying you, rather than the other way around, but ideally, you want to get as close to hitting the nail on the head as you can, so very little money changes hands come April 15. Why? Well, I think the downside of owing money to the IRS is pretty self explanatory.

But when it comes to refunds, a lot of people like getting that check in the mail every year. They count on it, and use it to wipe out debt, or buy a big purchase they've been putting off, or - I hope - boost their savings a bit. Financially speaking, though, getting a refund means you've given the IRS an interest-free loan. They've been sitting on your cash, when it could have been in your paycheck each month, keeping you out of debt in the first place, or in your savings or retirement account, earning a return on your investment.

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Free tax advice for all you procrastinators this Tax Day

Jennie L. Phipps Apr 15th 2010 @ 7:00PM EST Filed Under: Tax, Tax - Advice, 101 taxes

As Tax Day winds to a close and I came back from schlepping my check to the post office, I vowed that next year I'm going to be so organized that my taxes will be totally finished by the end of January and I won't owe a thing, because I will have calculated my obligation down to the penny in advance.

It's a goal that I fail to meet every year, but next year could be different.

In the meantime, I'm studying up on places that will give me free advice that will reduce my anxiety about my taxes -- even if it doesn't do anything to free me from the obligation to pay the stinking things.

Here are four online places that offer last-minute aid and comfort:

Continue reading Free tax advice for all you procrastinators this Tax Day

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