How to Help Your Tax Adviser to Help You

Are you hiring someone else to prepare your taxes this year? If so, you’ll be glad to know that, as long as you hire a qualified preparer, this is almost always a smart move. You can help make your preparer’s job a lot easier...and do the same for yourself as well...by making sure to provide all of the necessary documentation to your tax adviser as soon as possible.   

The sooner you do this, the more quickly your tax preparer can get going on your taxes, and thus, the sooner you’ll see a return. Plus, giving everything over to your preparer all at once definitely beats a lot of back and forth trips because you forgot something. Keep reading for a rundown of what you’re most likely to need.

Proper Identification

First things first, your tax adviser is going to need to see and make a copy of an official identification document. For most people, this simply means handing over their driver’s license. If you don’t have one, however, a passport and/or a state-issued identification card will usually do the trick. Be sure to bring along your social security card as well, and you should be all set.

Proof of Expenses

Another thing you’ll want to bring along, especially if you are trying to qualify for some deductions, is proof of any expenses that you have incurred. Being able to prove and deduct these expenses can save you a nice chunk of money, so be sure to bring proof of any of the following types of typically deductible expenses for your tax preparer to look over:

l  Any expenses related to being self-employed

l  Mortgage interest

l  Employee business expenses

l  Charitable contributions

l  Education expenses related to employment

l  Medical expenses that exceed 10% of your adjusted gross income

l  Union payments

l  IRA/Retirement plan contributions

Bank Account Information

Make sure you don’t leave your bank account information at home! You might need it to make a payment or, if you’re lucky, to set up direct deposit for your tax refund. Make sure you know the full bank account number and routing and tracking information.

Your tax preparer may request additional documentation and information from you, so, when possible, touch base with your preparer ahead of time and ask what you should bring to your appointment. This should make things go a lot more smoothly and easily all around.

Tax Scams on the Rise

In the world today, all kinds of scams exist. Some scams are enacted by phone; others happen over email, in person, or through standard mail. All, however, are designed with the goal of taking your hard-earned money away from you and putting it in the hands of unscrupulous scammers.

Tax scams are one of the most common types of scams, and, as such, it’s important for you to be aware of some of the more prevalent ones. That way, if someone tries to pull one of these scams on you, you’ll be “in the know” and able to protect yourself.

Scam #1: The Call from the Aggressive ” IRS Agent”
If you ever get a phone call from someone claiming to be from the IRS, put your defenses up. There’s a good chance that the person on the other end of the phone isn’t an IRS agent at all but is instead a cold-hearted scammer.

With this scam, false “agents” will typically tell you that you owe money of some kind and threaten you with arrest, deportation, and other serious consequences if you don’t pay up immediately.
Whatever you do, don’t give these scammers any personal information and definitely don’t pay them any money! Real IRS agents would not behave in this manner and would contact you by official mail from the IRS first. If this happens to you, call the police as soon as possible to report it!

Scam #2: The Stolen Refund
Another horrible scam occurs when a thief files a tax return in your name and then takes your refund money! While you might think this crime would be hard to commit, most scammers can gain access to your refund with nothing more than your social security number.

As such, you’ll want to be extremely careful to keep your social security number private and secure. You’re also less likely to be victimized by this crime if you file your taxes early on in the tax season. That way, if scammers do target you, you’ll have already received your refund and they’ll be in a big trouble!

Scam #3: Fake Tax Preparers
This scam is scary, but it does happen. There are some people out there who claim to be professional accountants or tax preparers and who often seem totally legitimate- even charging fees for their services. However, these “professionals” can be scammers who are plotting to steal your money.
While anyone can be targeted by fake tax preparers, they often tend to go over the most vulnerable victims, such as those who don’t speak English well or who are elderly.

To avoid becoming a victim of this type of scam, only work with true, professional accountants! You should look through the IRS’ Federal Tax Return Preparer Directory to find legitimate, trustworthy tax preparers in your area.

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California Accountant Faces Charges of Embezzlement

There are some people in the world who you just assume are trustworthy, and teachers and other school professionals are usually among them. Unfortunately, however, in a bizarre case from San Bernardino County, California, a school accountant who presided over her school’s lunch money has been charged with embezzlement. 48 year old Judith Oakes had served as a Rialto school district accountant since 2005, but that all came crashing down when she was caught on video stuffing lunch money into her bra.

It is estimated that Oakes has stolen as much as $1.8 million dollars in her time as the school accountant, and she is now facing sixteen felony charges, all of which she has pleaded “not guilty” to. If convicted on all counts, Oakes could face as much as eleven years in prison, an amount of time many people feel isn’t long enough.

Regardless of what you think about the Oakes case, let it serve as a reminder to you to be careful about who you entrust your money to. hiring someone to help you with tax preparation or to oversee your business’s funds throughout the year, be cautious. For tax preparation and general accounting professionals you can always trust, turn to Susan S. Lewis, Ltd. of Naperville.

Whether you’re

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Don’t Overpay at Tax Time

There are two types of people in this world: people who dread Naperville tax preparation time and those who love it. The ones who dread it are those who often have to pay large sums of money to the government. The ones who love it are those who get back nicely sized refund checks at the end of the year. If you fall into the first group, there’s a chance that you might be paying more than you have to, or at least that you’re paying more than you have to all at once. While there’s no guarantee that you’ll be one of the lucky few who gets a refund, there are things you can do to reduce the amount owed when tax time rolls around.

One very simple strategy is simply to increase your W4 withholdings. Doing so is relatively easy and straightforward, but if you have questions, any Naperville tax preparation professional can explain the process to you. In most cases, increasing withholding amounts decreases what’s owed at tax time.

Doing a few good deeds can also reduce your taxes. Plus, it will make you feel great about yourself, so it’s a win-win situation all around! Whether you wish to donate money to a non-profit organization, such as your church or a charity you believe in, or want to give away unused goods to a deserving cause or organization, your kind actions will be rewarded with a nice little tax write-off at the end of the year.

Important Tax Preparation Tips

Naperville tax preparation is, to put it plainly and simply, not a fun process. There’s nothing worse, however, than having to repeat the process more than once because you’ve made a careless error. One of the most common mistakes people make is simply not filing their taxes on time. There are deadlines for different types of tax forms, and you need to know what those are and abide by them. If you don’t, you may be forced to pay hefty penalties for late filing, potentially causing you to lose a huge chunk of your return or to have to pay even more than you bargained for.

Another common error is so simple that it might surprise you. Many people forget to include their social security numbers on their tax forms or include an incorrect social security number. Some tax filers simply don’t have their social security cards handy and plan to fill in the numbers later, when they have them available. What often happens, however, is that later never comes and people forget this important step in the process. Others will think they have their social security numbers memorized and will write them on their forms during the Naperville tax preparation process, only to find out later that they didn’t know that number quite as well as they thought.

These are just two examples of literally thousands of small errors that can delay the tax process and mean more work for you. The simplest way to avoid these errors is to seek assistance from a Naperville tax advisor as you fill out your tax forms.

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Preparing for your Naperville Tax Preparation Session

So, you’ve made the decision to hire an accountant. Congratulations are definitely in order! Because of this choice, you’ll be sure to have your taxes filed correctly, on time, and in a way that will benefit you as much as possible. Make sure you don’t show up to your Naperville tax preparation session empty-handed, however. Your accountant will likely let you know if any special or unusual documents are required, but outside of that, there are some items that just about everyone needs to have on hand. The first and most simple is some form of identification. For most people, this takes the form of a driver’s license. If you don’t have a driver’s license, a state-issued ID or a passport will do the trick. School IDs, library cards, and the like are not suitable as identification. You may or may not need your social security card at your appointment, but definitely know your social security number and the social security numbers of any dependents you plan to claim.

If you have a traditional full-time or part-time job, your employers will send you a W-2 form each year. Make sure you bring this form with you to your appointment. There are separate forms for contract employees or the self-employed, so make sure you know where you fit in and that you bring your own required forms. Some contractors or self-employed individuals will be responsible for keeping track of their own earnings and other information, and if this applies to you, be sure to bring in relevant records that are as clear and detailed as possible.

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Preparing Your Taxes

As a business owner, your tax preparation process will look quite different from that of the average person. There are many things you have to keep in mind when you file and many insider tips and tricks that can help you to save big on your taxes. Unfortunately, unless you’re a trained accountant, it’s far too easy to make a mistake, miss a tax credit, or do something else that causes the process to go less than smoothly. That’s why it is in your best interest to hire Naperville tax preparation professionals, such as those at Susan S. Lewis, Ltd.

One thing you will need to have access to is all of the information relating to your business’s income for a given tax year. Obviously, if you haven’t been keeping careful records throughout the year, this can prove to be a challenge. It is for this reason that you’re encouraged to start working with Naperville tax preparation professionals long before tax season begins. If you have a qualified, knowledgeable accountant helping you to stay organized and to keep detailed records throughout the year, you can get those taxes done and sent off in no time at all.

In addition to keeping track of all income related documents, you also need to keep a thorough list of your expenses. This can include expenses for traveling, advertising, meeting with clients, and more. Your accountant can help you to find tax credits for which you may be eligible. By finding the right tax credits, you can literally save yourself thousands of dollars, making the nominal cost of an accountant well worth it in the long run.

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How to Save More Money Now

Tricks to help you make, save and potentially grow some green.

By Jayme S. Ganey

The economy is in flux, but that doesn't mean you're destined for a downward financial spiral. The following tips will help you manage your bills, stash away savings and set yourself up for the future.

Place Your Bills on a Budget 

Utility payments, along with mortgages and car notes, are typically one of the largest monthly payments. Opt for budget billing: You pay a preset monthly amount based on your annual average energy consumption, advises James Petty, senior vice president of Regions Mortgage in Atlanta. If your home consumes more energy than the budgeted amount pays for, the difference can be added to a single bill or split over several months. If you use less energy, your account will be credited. Call your utility company for details. 

Negotiate a Better Credit Card Rate

Don't pay 23% interest on credit cards. Visit CardRatings.com and search the comparison list for a better deal with lower ongoing rates and perks like airline miles, cash back and gas rebates. Keep in mind: Most introductory rates of 0% can expire in six, 12 or 15 months, so pay your bills on time and build up positive credit to negotiate a decent rate.

Pay Your Mortgage Principal First

While mortgage interest rates are low, Jordan Goodman, personal finance expert and author of Master Your Debt: Slash Your Monthly Payments and Become Debt-Free, advises that you apply extra payments to the principal to build equity in your home. Owing less on the principal means less interest over the life of the loan, which eventually equals smaller mortgage payments and more money in your pocket. You can also consider borrowing money against the equity in your home to pay off higher-interest-rate loans. For example, you can take out a home-equity line of credit (HELOC) and pay your credit card, student loan or auto loan out of it, since, as of February 2012, HELOC rates were averaging approximately 5% interest, according to Bankrate.com, vs. the higher interest rates on other loans. HELOCs, which are revolving lines of credit at variable rates, can sometimes be refinanced or converted into fixed-rate loans. To get started, you need positive cash flow, sufficient equity and a high credit score. Visit TruthInEquity.com for more information. Keep in mind that you put your home at risk of foreclosure if you can't make the required payments. 

Make Your Kids Match Your Money

Paying for your children's college tuition is an investment, so treat it like one, says Ellie Kay, author of The 60-Minute Money Workout: An Easy, Step-by-Step Guide to Getting Your Finances Into Shape. When you invest, you seek to have your stocks work for you and you expect a regular report on progress. So think of your students' contribution as your 401(k) company match: Tell them they need to match your investment with their own money from a work-study job, scholarship or part-time gig to help pay for books, meals and gas. They also need to provide you with a report of their performance. A bonus: They'll be more invested in doing well if they're paying for part of the ride.

Move Your Money Around

If you think you’re paying too much for loans, you probably are. With the low interest rates currently available, you should shop around for the best deal. Adrian Nazari, CEO of CreditSesame.com, which helps consumers optimize their loans, recommends charting all of your loans: home, auto, student, credit cards. Write down whom you owe, what you owe, the current interest rate and the terms. Optimizing your loans allows you to move money where it is needed. If you have a credit card with an 18% interest rate, for example, consider transferring the balance to a lower-interest-rate card, which will allow you to pay down the balance faster.

Adapted from the January/February 2012 issue of Essence. © 2012 Time Inc. All rights reserved.

It's Tax Time, and the Naperville Tax Preparation experts at Susan S. Lewis Ltd, can help you make certain you are getting all the deductions you deserve. Contact us today!

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30 Small Steps Towards Savings

Stash away hundreds of dollars with these simple strategies,

By Lisa Bakewell

Frugal living doesn’t have to be a full-time job. During the next four weeks, devote a few minutes to making small changes to your daily habits. You’ll transform the way you spend and see your funds grow.

As you shop...

1. Compare prices ahead of time.
Don’t waste time or gas hunting for the lowest price. You can save money on books, children’s clothes, home decor and more by checking Websites such as pricewatch.com and shoppingnotes.com before you hit the stores.

2. Give your shopping cart a once-over.
Before you reach the checkout, remove at least one impulse purchase—those candy bars, that 12-pack of soda. Cutting just $10 per week of unnecessary spending adds up fast!

3. Lower your prescription costs.
Before refilling, check out the competition, since prices vary among pharmacies. Log on to pharmacychecker.com or pillbot.com to compare, and look for promotions that reward you with cash back for making the switch.

4. Replace one processed food.
Does your family go through bags of pricey frozen chicken nuggets or pizza rolls? Pick one item and switch it for an unprocessed substitute. For example, making mashed potatoes from scratch twice a week instead of buying a packaged version will save you $60 a year.

5. Punch the numbers.
Don’t assume that a jumbo-size household or grocery item is the best deal. Bring a calculator on every shopping trip—it’s worth the time it takes to figure out the price per ounce.

Around the house...

6. Get into an energy-saving habit.
Put sticky notes at eye level around the house to remind everyone to close the blinds during the day in summer, turn off lights and water whenever possible, and unplug appliances before going out.

7. Change the furnace filter.
You can save on repairs as well as heating and cooling costs, since your furnace will run more efficiently. Learn how at doityourself.com.

8. Seal drafts.
If you live in an old house or apartment building, buy draft stops to slide under exterior and basement doors and around windows. Energystar.gov estimates that proper insulation can cut heating and cooling costs by 20%.

9. Use less soap on your dirty duds.
Today’s detergent is powerful, and too much can be hard on clothes. Unless you’ve been rolling in the mud, try half the manufacturer’s suggested amount.

10. Install a dimmer switch.
Don’t be intimidated—dimmer switches can save hundreds of dollars in electricity costs. Save even more by using compact fluorescent bulbs (CFLs) made for dimmers.

11. Check for drips.
Even the smallest leak can waste gallons of costly water a day. Turn off all the fixtures in your home (including appliances that use water) and check the water meter. If the flow indicator is rotating, you have a leak.

12. Insulate the attic door.
Use a strong adhesive to secure rigid foam insulation and new weather stripping to the inside of your attic door or pull-down hatch. The project will pay for itself in a few months. Find instructions at energysavers.gov.

13. Trim the dryer hose.
Cut the duct to a length that’s just long enough to pull the dryer out a few feet from the wall. A short, unobstructed line will help the dryer run more efficiently, which means you could save up to $25 a year on your electric bill.

In your spare time...

14. Take stock of your family’s needs and wants.
Sit down together and examine each person’s wish list. If something is a need, it stays. If it’s a want, put a time frame or a contingency on the expense. And save on needs by switching to store brands or borrowing the item instead of buying it.

15. Sign up for load management.
Allow your utility company to oversee your home’s power during peak usage hours, and you could save $100 a year without a noticeable change in service.

16. Plan a “date day.”
Leave the high cost of date night for the less savvy folks. Set up play dates for your kids, then enjoy a romantic brunch and a matinee movie.

17. Examine your cell-phone bill.
Opting for an unlimited plan may sound like the best choice for smartphone users, but you might not talk, text or surf the Web nearly enough to cover the extra cost. Dropping your data storage to 2GB alone will save $5 a month with most carriers.

18. Walk a mile.
Chances are you run several errands a week right around the corner—such as picking up your kids from school or a friend’s house. Use your car only for trips beyond a mile, and you’ll improve your health while saving on gasoline.

19. Purchase a discount entertainment book. Take advantage of two-for-one restaurant deals and access to hundreds of printable coupons and discounts online. Get a discount book for half off (normally $35) at entertainment.com.

20. Check out competing car insurance rates.
Go to insurancerates.com to compare costs in your area, then call your agent to see if you qualify for new discounts.

21. Keep up with car-maintenance appointments.
Look in your vehicle’s manual to find suggested maintenance dates, and schedule them for the year. You can avoid costly repairs, plus regular oil changes and properly inflated tires can save you $100 a year in gas.

22. Arrange a ride to work.
Plan to share a ride with a co-worker or take a bus, a train or a bike to work. You’ll save about $5 per ride (or $260 a year if you do it once a week).

23. Discuss ways to save.
Share financial goals as a family, and let each person contribute ideas for cutting costs. Kids are never too young to learn about money. Plus, being open about finances is likely to make you less wasteful.

24. Institute a weekly “no spend” day.
Limit your family’s spending to six days a week, then get creative with free family-fun ideas, like having game night or a friendly competition to see who can create the best meal from your pantry.

With your finances...

25. Bank for less.
Call your bank and ask to switch to a free checking account with no minimum balance. If your bank doesn’t offer that option, consider a credit union; interest rates tend to be higher and fees lower. Or sign up for a free, interest-bearing checking account at an online bank.

26. Pay all bills on time.
Late credit-card fees can average $28 per bill, so missing a due date puts a dent in your funds. Add each bill’s “send by” date to your calendar or agenda, or sign up on the company’s site for an auto-pay option or to receive e-mail reminders.

27. Look for lost treasure.
It takes just a few minutes to visit missingmoney.com and see if you have any unclaimed accounts, safe-deposit-box contents, dividends, uncashed checks, utility refunds or insurance policies in your name.

28. Cancel overdraft protection.
The average overdraft fee is $27 (almost as much as the average bounced check fee, which is $30). To avoid that trap, spend a few minutes every week tracking your spending—including debit-card purchases—in an old-fashioned check register. You’ll be glad you did.

29. Plan your weekly withdrawals.
Using an ATM that doesn’t belong to your bank can cost you about $3.75 per transaction—almost $200 a year if you do it once a week. If you’re in a pinch, buy a small item at a drugstore and get cash back.

30. Find out your credit score.
The higher your score, the more you can save in interest on credit cards and loans. Get a free report once a year at annualcreditreport.com, check your score anytime at creditkarma.com, and look for ways to improve (or maintain) it at myfico.com.

Happy Saving, and to save some serious cash with your tax returns, turn to Lewis CPA, the preferred Naperville Tax Preparation services provider.  Call and make your appointment today. 

11 Ways to Beat the Hidden Costs of College

How to outfit a dorm room, acquire textbooks, get around campus and more — for less.

So you've managed to get a grip on tuition and housing costs. Good work, but you're not done yet. You're about to be hit up for dozens of nonacademic costs—from frat dues and dorm furnishings to laundry services and late-night eats—that can easily add up to thousands more dollars per year. "There are just so many ways for a kid to spend money on a college campus without even being aware of it," says Rod Bugarin, a financial aid consultant and a former financial aid officer at Brown and Columbia universities. To ward off sticker shock, we tallied the tab for the most common extras at universities around the country, then gathered tips from dozens of experts on how to keep those unexpected costs under control.

1. SETTING UP THE ROOM

The damage: Almost all colleges send out a suggested shopping list that adds up to several hundred dollars. If you pony up for high-quality stuff, you can easily spend twice as much.

The fix: Buy used. Some campuses have a Goodwill-like depot where upperclassmen leave dorm furnishings. Ask a resident adviser. And be sure to coordinate with roommates: One person brings the TV, the other can tote the mini-fridge.

2. GREEK LIFE

The damage: Most members pay $1,000 to $3,500 a year to participate in a fraternity or sorority; that price includes dues, insignia clothes and charitable contributions.

The fix: Look for scholarships through your chapter's national Website. Rent clothes for rush and formals—gowns, for example, can be procured on loan from sites like RentTheRunway.com.

3. PARENTS' WEEKEND

The damage: Hotels jack up rates for the official dates. For the University of Iowa's Family Weekend, a room at the Sheraton Iowa City Hotel runs $339 per night, vs. $159 a night the following weekend.

The fix: Pick a different weekend to visit, or get a room farther out of town.

4. GOING TO THE GAME

The damage: Schools push bundled tickets, such as Arizona State's $149 pass to all football and basketball games.

The fix: Do the math. Season tickets are a good deal only if your kid attends most games. An ASU student will have to go to at least eight games to make the season pass worth it.

5. GETTING AROUND

The damage: Parking rates at urban campuses are astronomical. And that's not even counting the $6,800 it costs to own and operate a car, according to AAA.

The fix: Ditch the car. Most campuses give students a discount on a local transportation pass. Or try a car-sharing service like U Car Share or Zipcar. The occasional driver can access Zipcar for about $30 a month.

6. THE GADGETS

The damage: The average freshman spent $960 on a laptop last year, not including the printer, software, case and other accoutrements.

The fix: For PCs, comparison-shop. Most colleges hawk laptop discounts that amount to 10% to 15% off the price; you may get a better deal at a site like TigerDirect.com. For Macs, you'll get the best price buying a refurbished unit (see Apple.com). Buy software from the student store, which discounts up to 75%. Or tap your 529: Tech stuff counts as education spending.

7. SICK BAY

The damage: Most colleges automatically enroll students in their health insurance plan. Costs can range from a few hundred dollars to more than $2,000 a year.

The fix: Keep your kid on your own health plan. You may need to prove that your child has coverage already before you can turn down the school's offering.

8. THE LITTLE THINGS

The damage: Students spend an average of $300 per year in the school store on items such as toiletries, groceries and notebooks.

The fix: Set a $100 limit on insignia items; that should pay for a hoodie, a T-shirt and a few logo-covered notebooks. Load up on items like Gatorade and bar soap at big-box stores.

9. GETTING HOME

The damage: Your child will probably come home more often than you think; a few extra trips per year add up fast.

The fix: Get a $20 Student Advantage discount card for 15% to 20% off Greyhound buses and Amtrak trains, plus discounts at retailers like Barnes & Noble and Footlocker. Shop for air fares on StudentUniverse.com. Look on Facebook or on Zimride.com to find ride shares with other students.

10. OFF-CAMPUS MUNCHIES

The damage: The average student spent $765 last year to dine off campus, according to Student Monitor. Many eateries let kids pay by swiping their ID cards, which fuels overspending.

The fix: Set a limit. Off-Campus Meal Plan cards can be swiped at the register and funded with as little as $300. Look for restaurants that will cut 10% off the bill with an ID. Tap daily deal sites such as Deals4campus.com and Moocho.com. Recently students at Colorado State could get $10 worth of food for $5 at nearby Tios Burritos.

11. TEXTBOOKS

The damage: Students paid about $600 for books last year, according to Student Monitor.

The fix: Cut your costs by more than 50% by buying used books and reselling them at the end of the year. Try an online discounter like Chegg.com. If you don't need to scribble notes in the margin, download or rent e-books from Amazon.com (about 25% to 50% cheaper than buying new).

Sources: Student Monitor; National Association of College Stores; College Board; CheapScholar.org; eCampus.com; American College Health Association; Alltuition.com; American Student Assistance; Aristotle Circle; Campus Computing Project; CNET; Association for the Advancement of Sustainability in Higher Education; Money research.

The information contained herein represents the opinions of a third party and does not necessarily represent the opinions of Susan S. Lewis LTD or Platinum Financial Services and are unaffiliated with any of the entities referenced above. For additional Naperville Education Planning advice as well as how having a college student will affect your Naperville tax preparation, please feel free to contact us today.

Adapted from the April 2012 issue of Money. © 2012 Time Inc. All rights reserved.

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