Expert Advice on Accounting & Financial News

TAX PLANNING

Why A Roth IRA Makes Sense For a Teenager

By The BIDaWIZ Team on October 21st, 2010 at 6:20 pm

As we all know, many teenagers work during the summer months and in some cases throughout the year. Yet, very few of them actually take advantage of the tax benefits from contributing to a Roth IRA. It's a shame because the investment growth & reduction in future tax liability can be huge. .

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SALES TAX

Is California State Sales Tax Ever Coming Down?

By The BIDaWIZ Team on October 20th, 2010 at 6:12 pm

Despite desperate calls from small business advocacy groups to implement fiscal policies that spur economic growth, California maintains the highest state sales tax rate in the country. A whopping 8.25%. To refresh your memory, California recently (4/1/09) increased the state sales tax by 1% to compensate for the massive budget crisis. The good news is that the 1% “temporary” increase is set to expire on June 30, 2011. But, with all of these sales tax changes, how should small businesses prepare their books? Read More.

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STATE INCOME TAX

Where Is My California State Tax Refund?

By The BIDaWIZ Team on October 19th, 2010 at 3:13 pm

Californians seem to get no breaks. State income tax refunds still have not been issued to both individuals & businesses due to the State’s “Cash Flow Problems.” That can anger many taxpayers because essentially they have given their government a loan & haven’t gotten paid back on time. So how long do these taxpayers have to wait for tax refunds? Read More.

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TAX ISSUES

Why Is My Tax Refund Lower Than I Expected?

By The BIDaWIZ Team on October 18th, 2010 at 7:58 pm

After filing a tax return, most taxpayers that are entitled to a federal or state tax refund are usually content with the amount of the check. However, this is not always the case, as there are instances in which the tax refund received is much lower than the taxpayer initially expected. Find out some of the likely causes for this lower than expected tax refund scenario. .

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TAX PLANNING

Managing Your Out of Pocket Expenses

By The BIDaWIZ Team on October 13th, 2010 at 5:38 pm

Most of us have been in the situation when our employer requires us to travel on a business trip to another state or country. Unfortunately, the employee is usually stuck paying for the out of pocket travel expenses which, if mismanaged, can hurt their tax efficiency & become devastating to their personal credit. .

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CREDIT CARDS

My Parents’ Credit Card Account is Hurting My Credit Score

By The BIDaWIZ Team on October 12th, 2010 at 4:05 pm

Believe it or not, the following scenario is all too common: “I just saw my credit report for the first time & there was a credit card account that I had no knowledge of. When I called the bank that held the account, they told me it was somehow attached to my mom. The account was opened in 1996, I would have been ten years old at the time, and my name is attached to the account! Not only was this account opened without my knowledge, it has hurt my credit score as there are multiple late payments.” Read More.

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TAX PLANNING

How Do 529 Plans Compare to Other College Saving Options?

By The BIDaWIZ Team on October 11th, 2010 at 3:33 pm

In our last post entitled, "When a 529 Plan Doesn't Make Sense," we explained how a Roth IRA can be a better option when saving for college. While this is generally true, there are instances when a Roth IRA isn't completely feasible for a family. If this is the case, it is important to know exactly how 529 Plans compare to other college saving options. .

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INVESTING

Does It Make Sense To Go To Vocational School?

By The BIDaWIZ Team on October 7th, 2010 at 6:43 pm

Economists & political pundits alike seem to argue on a daily basis that the single greatest reason for the slow job recovery is the significant disconnect between the skills of unemployed workers and those required by employers. This claim is probably reason enough for an unemployed worker or those with little job security to evaluate their options for returning to school. .

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TAX PLANNING

Planning For Capital Gains Tax in 2011

By The BIDaWIZ Team on October 6th, 2010 at 5:22 pm

The decision to sell this investment now or wait until next year is becoming more and more important. Tax rates across the board will likely start to increase in 2011 with long-term capital gains tax increasing at least 5% from 15% to 20% or even higher. Therefore, it is strongly advised to review your portfolio and the impact that a transaction will have on your tax liability, if any. Read More.

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TAX PLANNING

When a 529 Plan Doesn’t Make Sense

By The BIDaWIZ Team on October 5th, 2010 at 1:51 pm

Sending the kids off to college is perhaps the 2nd most expensive event in a parent's lifetime other than buying a home. It is so expensive today with rising tuition costs & savings accounts continuing to dwindle as a result of the financial crisis. To prepare for the high cost of college, we often hear financial planning experts instruct parents to setup a 529 Plan account. While this can be sound advice, there are instances in which a 529 plan doesn't make much sense at all. .

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