April 10th, 2012

Taxes and Your Credit

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April 17 is fast-approaching, and your 2011 tax return will be due before you know it. While you probably know that paying taxes late or not paying at all can cause you a lot of trouble down the road, you might not realize that it can also impact your credit. How? Here, we’ll cover a few little-known facts about taxes and credit.

You can pay your taxes with your credit card.

If you owe the government this year, you might be tempted to pay your tax bill with your credit card if you don’t have the cash saved, or even just to earn rewards points or cash back. While the IRS is more than happy to accept your credit card payment, you will be charged a credit card processing fee of 1.89 to 2.49 percent. If you have no other payment alternative, or your rewards benefits outweigh the processing fee, paying with your credit card might be a good choice.

Tip: Putting a large sum of money on your credit card will affect your credit utilization rate, a significant factor in your credit score. It’s best to keep your credit card balances below 30 percent of your overall limits, so keep that in mind if you choose this option. Check your free credit score to see how your current credit utilization rate is affecting your credit health.

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April 6th, 2011

Divorce & Taxes: Who Gets the Dependency Exemption?

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Most people assume that when parents are divorced or separated, the parent who has primary custody of any children takes the dependency exemption when filing taxes. However, as is true in so many areas of personal finance, the default choice may not be the best one for all parties involved.

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April 2nd, 2011

The “I’m Getting Audited” To-Do List

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An IRS audit is, by definition, a review of an organization’s or individual’s accounts and financial information. A tax auditor’s job is to review this information to ensure the taxpayer or organization is complying with tax laws.

If the IRS comes knocking on your door, here are a few steps to get you ready for a tax audit.

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April 1st, 2011

Taxes Throughout the Year

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Congrats! You’ve just filed your 2010 taxes; now what?

How about making next year’s taxes easier? Here are ten easy steps to make sure that come Tax Day 2012, you’re ready for the taxman.

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March 31st, 2011

Your Tax Questions, Answered!

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You asked, we’re answering! From education credits to starting your own business, our Facebook fans and Twitter followers weighed in on their most puzzling tax-related questions.

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March 30th, 2011

Tax Tips From Our Favorite Personal Finance Bloggers

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The Fab Four had it right when they said, “You’re working for no one but [the taxman].” But paying taxes doesn’t have to feel like a hard day’s night. When we find ourselves in times of trouble, we get by with a little advice from our friends.

Today, we share great tax tips from our favorite personal finance bloggers to help save you from the taxman. Enjoy!

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March 30th, 2011

Wednesday Roundup: Credit Cards & Tax Refunds

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Are you getting a tax refund? According to CNN, the average taxpayer will receive $3,000 back from the government. That’s just the average; some people will receive more, some less.

If you’re getting money back this year, do you plan to spend, save, or pay off some debt with your refund?

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March 29th, 2011

How To File Your Taxes At Different Life Stages: From College to Your First Home

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As your life changes, sometimes, so do your taxes. Whether you’re filing taxes for the first time or you’re a veteran filer who just bought his first home, there’s always something new to consider when tax time rolls around.

Don’t miss these tips, based on different life circumstances, to guide you in the right direction before Tax Day is here.

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March 28th, 2011

Tax Basics: What you need to know before you file

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** It’s Credit Karma Tax Week! Every day we’ll have tax-related posts to keep you in-the-know as you file your taxes. **

Let’s go over some tax basics.

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March 15th, 2011

DIY or Not: When Do You Call An Accountant?

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We’re all about self-reliance, but we’re also realists. Deciding whether or not to DIY depends on your skills, interests, free time, and life situation. The questions can be far-ranging: Should you try to cut your own bangs? Hem your own work slacks? Caulk your own tub? Do your own taxes?

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