Instead of being careless with your money for the next ten years, get a head start by taking charge of your financial future right out of the gate. Take a look at some of the most beneficial money saving tips for college graduates.

1.  Know Your Goals

In order to save money, you need to know what you plan on doing with your money once it starts flooding (hopefully) your bank account. When you graduate college, you may not have the complete direction for your life mapped out – who does?

Although you can’t totally control your future, or who will offer you a job, one thing you can control is the development of your goals.

How much do you actually need to live on? What standard of living are you comfortable with? When should you learn about 401ks and IRAs? Is it ever too early to think about saving for your future? What kind of car do you see yourself driving?

The answers to these questions will undoubtedly direct your future – and they shouldn’t be ignored.

It’s important to establish your long-term and short-term goals so you will be able to maintain order of your finances both now and in the future. Developing a post-college financial plan is one of the best decisions you can make.

2.  Stay In Control of Your Educational Debt

Another great strategy for saving money is to pay down your educational debt as soon as possible. And since many student loans don’t require repayment until after graduation, paying your loan debt is probably a new concept – one that has dire consequences if it’s pushed to the back burner.

Although making the minimum student loan payments is required, paying more than the minimum each month will help those loans vanish quicker. Not everyone will be able to double their monthly student loan payment, but remembering to include your student loan repayment into your post-graduation budget will help you stay in control and help build your credit.

3.  Adjust Your Financial Perspectives

It’s a mental game – the way you think about and approach your finances will go a long way in helping you save the money you earn. While college offers more freedom, most students live in a relatively safe bubble of existence while earning their degrees.

When you’re a student, all of mom and dad’s money seems to get labeled as disposable. You tend not to notice the money that pays for school or books or food; it’s almost as if college has tricked you into thinking money is easy to get and will always be there.

But once you start earning your own income, paying your own bills, and taking care of yourself financially, your financial perspectives should change accordingly. The income you earn should be respected enough to develop wise strategies for managing, saving, spending, and even investing.

4.  Keep Your Spending In Check

One of the most responsible decisions you can make when it comes to your post-college financial landscape is to re-define your wants and needs. When you can eliminate self-deception and honestly separate your needs from your wants, you will take charge of your income and graduate into responsible adulthood.

Without gaining control of your spending, you’ll soon find yourself trapped within debt wondering where you went wrong. Instead of searching for tips in ten years about how to get out of debt, appreciate the benefits of financial responsibility and spend wisely today.

5.  Seek Advice and Learn From Others

The last bit of advice for saving money as you begin your life after college is something you’re already doing if you’re reading this article – don’t be too proud to seek wise financial advice from family, friends, or other respectable outlets.

Research the topics that you don’t understand, get help with the areas that you struggle with, and always be teachable when it comes to your bank account. None of us make the right decisions 100% of the time. But what separates the wise from the unwise is the humility to know when you need help. Never stop learning and never stop saving.

Don’t have the money to pay taxes? File an extension. Still trying to get everything in order? File an extension.

However, the tax extension isn’t exactly what it sounds like, and it doesn’t really “cure” anything. Here are 5 important facts about filing a tax extension that you need to know before you file.

1. An Extension Isn’t Really an Extension

The word “extension” is somewhat misleading. When you file a tax extension, you’ll get six extra months to turn in your tax paperwork to the IRS. Sounds reasonable, but keep reading.

The keyword here is “paperwork”. A tax extension doesn’t extend the deadline to pay any taxes that you may owe to the IRS.

Sound backwards? Not what you expected? Welcome to enlightenment my friend.

If you file an extension, you will still have to pay any due taxes by the normal tax deadline. So before you file an extension assuming you’ve got 6 extra months to pay your taxes, think again.

2. The Penalty is in the Eye of the Filer

In sports, penalties are up to the discretion of the referee. When it comes to tax time, the IRS wears the zebra stripes.

Although technically you’re not penalized or charged a fee for submitting the tax extension paperwork – Form 4868 – there could still be a downside to filing an extension.

If you file an extension but you’ve got a good grasp on your situation and you are pretty sure a tax refund is in your future this year, then you really have nothing to worry about. The government will hold onto your refund until you get your paperwork sorted out during your extension period.

Once you file, you’ll get your refund.

But the rules change a bit if you end up owing taxes to the IRS. If you file an extension but you choose not to pay estimated taxes by the tax deadline, the IRS will charge you interest on the taxes that you owe them.

Feels like a penalty to me.

3. You Can Request An Extension Using TurboTax

Many people still believe that the only way to file for an extension is the old-school paperwork method. Not so anymore.

The IRS will gladly accept your tax extension form via tax software and the world wide web. Simply use your tax software to e-file your Form 4868. The IRS will acknowledge your request as long as you file by the tax deadline.

4. Your Reasons Usually Don’t Outweigh the Benefits

Unless there are certain pieces of paperwork you’re waiting to arrive in the mail, an extension probably won’t deliver the benefits you might expect.

If you’ve procrastinated during tax season, the solution isn’t an extension. You could end up costing yourself more money and more frustration by asking for more time.

The best piece of advice is to buckle down, stare your tax paperwork in the face, and get it done on time.

5. No Extension for IRA Contributions

Lastly, if you think you’ve found an IRA-contribution loophole in the tax process, think again. Requesting a tax extension doesn’t have any impact on the deadline for contributing to your Traditional or Roth IRAs.

But at what cost? It’s expensive to stay ahead of the electronics race. The running joke about the iPhone (and just about every other type of electronic device) is that “Your gadget is out of date the moment you buy it and walk out of the store.”

Spending all of this hard earned dough to remain king of the electronics mountaintop begs the question – Can I deduct my iPhone 5? Can I write off my new computer or my monthly cell phone service costs? What about my printer, ink cartridges, or any of my electronics . . . can I deduct those expenses from my taxable income?

The short answer is a resounding: Yes! But, as with everything tax related, you have to pay attention to the rules.

Writing Off Your iPhone 5 and Other Mobile Devices

Let’s stay out of the iPhone/Android debate for a moment. No matter which smartphone you’ve chosen, there are two things that every carrier demands; you have to buy a phone and you have to pay for service.

So how do you deduct these expenses? Well, you have to meet the basic criteria that the IRS puts forth when dealing with such issues:

1. you have to itemize your deductions, and
2. you have to use your phone for only your business or place of employment.

The standard deduction doesn’t not allow you to add on your mobile device costs. Sorry, but you’ll have to itemize if you want to deduct mobile device expenses.  TurboTax will help you figure whether you can itemize your deductions or take the standard tax deduction.  You don’t need to know which one to take.

If you’re self employed, you have the ability to deduct all of your cell phone expenses (initial purchase and monthly bill) as long as the phone is used for business purposes – exclusively.

If you aren’t self employed but your phone expenses are required by your employer and you don’t receive reimbursement, you also have the right to deduct all of your cell phone expenses from your taxable income.

Again, to deduct 100% of your cell phone costs, the IRS demands that the phone and service in question be used exclusively for business.

Personal and Business Use

If your phone doesn’t fall into the “exclusively for business” category, don’t worry, the IRS hasn’t completely forgotten about you.

If your new cell phone acts as both your business and personal phone, you are only allowed to deduct the portion used for business from your taxable income. It’s important for you to hang on to your itemized phone bill and receipts to ensure that you’re deducting the right amounts and to keep records of your deduction.

Deducting Other Business Assets

As it turns out, you are able to deduct much more than your cell phone costs. In the same way that you expense your costs from a business trip, the government also allows you to deduct electronics purchases as long as they’re reasonably necessary for your business.

Or as the IRS puts it, you are able to deduct depreciating expenses if those expenses help you to generate income.

Expenses that fit into this category range from new computers, printers, leased equipment, software, monitors, computer peripherals, and so on. Basically, anything that you deem necessary for your business or necessary for you to continue earning income can be deducted.

Just remember to save your receipts and keep good records.

We’ve laid out 6 last minute tax tips to help you streamline your tax preparation and keep more money in your pocket.

1.  Prepare and Organize

Take  time and gather all of your necessary paperwork, forms, receipts and checklists.

Even though TurboTax ask you questions to determine if your eligible for tax savings, anything that deals with your income, your donations, your deductions, your receipts – anything at all – will help you save time if it’s collected before you begin preparing your tax return.

If you’re filling out your tax paperwork on your own with paper and pen, make sure you double and triple check all of your financial entries, your income declaration, and your math. One of the great things about tax software like TurboTax is that the math is calculated for you and you don’t need to know tax laws.

2.  Correct Spelling, Numbers, and Everything!

You could list out the top twenty errors simply by being reminded about spelling your name correctly, your dependents names, your employers, your social security number, employer’s numbers, addresses…the list goes on and on.  TurboTax can help you eliminate some of these errors with the ability to import your W-2 information from your payroll provider and financial institution.

Here’s the key to preparing your taxes- don’t rush, make sure you spell everything correctly, don’t skip anything, and double check your answers.

This also includes correct account numbers, bank routing numbers, and credit card numbers if you request a direct deposit refund or if you owe more and you’re paying with a credit card.

3.  Know Your Dependents

Ok, this one seems to be obvious, but it always creeps up on the IRS top ten tax filing mistakes leader board. Its vital to get this information right.

Next to filling in your name and social security number correctly, the government absolutely needs to know if you have any dependents you will claim.

It’s important to know who your dependents are and double check that they qualify as such. It’s important because if your dependents are left off your tax forms, you’re missing out on valuable tax credits and deductions. Also, adding a dependent that someone else is claiming is not allowed.  Only one person can claim a dependent.

4.  E-file and Direct Deposit

If you want to avoid  tax errors and get your tax refund as quickly as possible, ditch the paper and pencil and go online and e-file with direct deposit.  You will avoid mathematical errors and the IRS estimates that 9 out of 10 taxpayers will receive their tax refund within 21 days when e-file is combined with direct deposit.

5.  Get Help

If you are preparing your taxes in the 11th hour of April 15th and you still have tax questions, you can ask TurboTax tax experts your question while you prepare your taxes, free.

6.  One Final Reminder

If you’re signing electronically, make sure to correctly type in last year’s AGI (when you’re prompted).

My guess is that people are so joyful and exuberant as they complete the last section of data on their tax forms that they may forget this information, as they’re jumping through the air in slow motion as the party poppers pop and confetti rains down.

Using TurboTax and these last minute tax tips, will help you easily file your taxes before the tax deadline and save money.

Good luck!

As is the case with anything tax-related, you’ll have to meet the requirements; and once those requirements are satisfied, you’ll be able to receive an additional tax break for your efforts that was designed to help offset the costs associated with caring for a parent.

Support Means Support

To meet the support requirements necessary to claim your parent as a dependent on your tax return, you must cover more than half of your parent’s support costs – meaning 51% or more of their support costs must be covered by you.

These costs include food, housing or lodging expenses, clothing, and medical services and/or equipment costs.

If support for your parent was given by a group of individuals or family members, you may want to sign a Multiple Support Declaration form which would allow a single person in the group to claim your parent as a dependent, thus giving the tax break to a single person.

Residency and Relationship

The technical term that the IRS uses to meet the relationship requirement for these tax and life situations is “Qualifying Relative”. This means that the person you’re caring for can be your parent, an in-law, or even a grandparent.

However, they must be related to you biologically, by adoption, or through marriage (which would technically be a biological relationship through your spouse).

And guess what?  The IRS has residency requirements as well. To meet the resident requirement, the person you are caring for must meet one of the following:

• Be a legal US Citizen
• Be a US National
• Be a US Resident Alien
• Be a Resident of Canada or Mexico

For foreign, non-US-citizen parents to achieve official US resident status, they must be a recipient of a Green Card issued by the US government or have lived in the US for 183 days during the past tax year.

Social Security and Gross Income

The parent you want to claim as a dependent on your tax return must have a social security number or a tax identification number. Either of these numbers will satisfy the identification requirement for the IRS.

To be allowed to claim your parent as a dependent, your parent’s earned income cannot be more than$3,800 for the 2012 tax year. This means that if your parent earns more than $3,800, you aren’t eligible to claim them as a dependent. Non-taxable income, such as Social Security, does not count toward this amount.

Also, the parent you’re claiming as a dependent cannot file a joint tax return.

More Perks and Requirements

One of the last requirements that needs to be stated is that, if you want to claim your parent as a dependent on your tax return, you yourself cannot be eligible as a dependent on someone else’s tax return. Again, you cannot be claimed as a dependent or eligible as a dependent (even without being claimed) if you plan to claim your parent as a dependent.

Once all of the requirements are met, you’ll be happy to receive an additional $3,800 tax exemption on your return.

You are also allowed to include your parent’s medical expenses when calculating your medical deductions, and you may also be able to claim the Dependent Care Credit if your parent needs assistance while you’re at work or away.

When you answer a few simple questions, TurboTax will figure out whether you are eligible to claim a relative as a dependent.  If you still have questions, you can talk to a TurboTax tax expert while you prepare your tax return.

You may have questions about your parents still claiming you as a dependent, making the required amount of money to file, or knowing about potential tax deductions.

When you’re in the zone between a child and a full-blown adult, it’s good to have some guidance about taxes. Take a look at theses 5 tax tips for students to make sure you’ve got your bases covered.

1.  Go Ahead and File

Ok, so this piece of advice might be on every other list out there, but it’s important enough to repeat here. No matter how much money you made, even if you think it’s not enough to be required to file a tax return, go ahead and file.

If you received a paycheck at all in 2012, even working part time, you probably had taxes taken out. Even if you didn’t make enough money to be “required” to file, you should still file so you don’t miss out on your tax refund. Not to mention, it’s good practice for the future. Face it, you’re approaching the time in your life where you are going to be responsible for yourself.

2.  What’s Your Dependency Status?

Being claimed as a dependent is one of those grey areas for a college student. Should your parents continue to claim you as a dependent, or should you file a tax return yourself?

Sure you might get a bigger tax refund if you take your personal exemption, but that amount may be a small fraction of the amount of tax breaks your parents would receive if they claim you as a dependent for one more year.

One of the great things about software like Turbo Tax is that you can get an estimate without having to pay for it.

3.  Become an Expert at Tax Deductions and Credits

You’re in school, you go to class, and you know what it takes to study and be successful. Why not apply those comprehensive study habits to your tax situation?

As you prepare your taxes by answering simple questions using TurboTax, you will learn what tax deductions and credits you’re eligible for.  You may be able to claim the American Opportunity Credit as long as your parents don’t claim you as a dependent.  This may entitle you to a credit worth up to $2,500

4.  Tax Return Rough Draft

Using an outline and writing a rough draft should be pretty common occurrences for college students. It would be smart and inexpensive to apply those same tactics to your tax return. Instead of flying through the tax process, take some time to iron out the kinks and keep more of your hard-earned money.

You could practice with tax software. You can try TurboTax and let it easily guide you through the process and get an estimate before you file.  It’s free to practice filing your tax return and it’s free to see which tax credits and deductions you’re eligible for.  When your ready to file your taxes, as a student, chances are high that you qualify for the Federal Free Edition; meaning you don’t have to pay to file your federal tax return.

5.  Stop the Insanity

And by insanity, I mean stop procrastinating. No matter what your work ethic looks like at college, don’t let procrastination sneak into your tax life.

Instead of waiting until the last minute to file your tax return, you should start early, stay informed, be prepared, and hammer this thing out. And whatever you do, try give yourself three to four weeks before the tax deadline instead of three to four hours.  If you do wait, you can still file with TurboTax up until the last hour on April 15th.

You can also conveniently file your taxes from your mobile device using SnapTax.  With a quick snap of your W-2 you could file in minutes.

If you have questions, you can talk to TurboTax tax experts who are CPAs, IRS enrolled agents, and tax attorneys while you prepare your taxes.

But what can you deduct? What amount of your medical expenses are tax deductible? Do you have to show proof of the expenses that you’re claiming as deductions? Whose medical bills are able to be deducted?

These are some very common questions about medical expenses, so let’s just dive right in.

You Can Deduct Medical Expenses

More than a few people are surprised to learn that a portion of the cost of their medical and dental expenses can be subtracted, or deducted, from their adjusted gross income. However, on your 2012 taxes, only medical and dental expenses that meet the government’s minimum required amount, which is anything above 7 ½ percent of your adjusted gross income (AGI), are eligible.

In other words, if you’re medical expenses aren’t equal to or greater than 7 and a half percent of your income, you can’t claim them as tax deductions.

Of course, these expenses can only be deducted from your income if you itemize your tax deductions instead of taking the standard deduction.

Whose Expenses Can Be Deducted?

Whether you’re a first-timer in the medical deductions arena or a seasoned veteran, it’s important to know exactly whose medical expenses can be deducted from your income.

Although almost everyone’s life (and therefore tax) situation is unique, you can somewhat generalize the rules about medical and dental deductions. Here’s the low-down: you can deduct your medical and dental expenses, those of your spouse, or the expenses of your dependent’s – if you choose to itemize.

If you’re not sure about itemizing your deductions, TurboTax will figure out which choice benefits you best – itemize or take the standard deduction.

Exactly Which Medical and Dental Expenses Can I Deduct?

The government has an enormous list of qualifying medical and dental expenses that they have ruled as eligible for deduction on your income taxes. For a full list of every piece of information dealing with deductible medical expenses, see IRS Publication 502.

For time’s sake, here are a few of the most common expenses (and some commonly overlooked expenses) that are deductible.

• Diagnosis and Cures
• Annual Physical Exams
• Medicine, Treatment and Prevention
• Dental Treatments
• Medical Equipment, Supplies and Diagnosis Devices
• Ambulance and Other Medical Professional Transportation
• Travel expenses to and from treatment
• Insurance payments
• Chiropractor
• Psychologist
• Physical Therapy

Medical Expenses that Aren’t Deductible

The IRS updates the list of medical expense deductions quite frequently, from a tax perspective, so it’s important to know not only what is considered deductible, but what isn’t.

A few expenses that may be medical-related but aren’t as of yet deductible, according to Uncle Sam, are:

• Elective cosmetic surgery
• Medicine that isn’t FDA approved
• Expenses related to a funeral
• Medicare tax payments (for the self-employment tax)

Like almost everything related to your income, expect a change in your job to have an impact on your tax situation. And when it comes to taxes, the ‘how and why’ of your job transition has quite a bit of weight as well. Believe it or not, the IRS cares about why you’re leaving your current job and how you’re looking for your new job.

Since the IRS cares so much (and since the answers have a lot to do with how much or how little you may owe come April 15), it’s a good idea to be as prepared and read up on a few different scenarios below.

Severance and the IRS

Whatever walk of life you come from, the word severance tends to carry a negative connotation. It’s usually paired with being let go, laid off, or forced into retirement.

No matter what reason for your severance pay, you need to know that the IRS wants their cut.

According to Publication 525, the IRS categorizes severance pay as any form of payment “for the cancellation of your employment contract”. And this severance pay must be included as part of your income when you file your tax paperwork.

You do have the choice to reduce the amount of severance pay you receive if you decide to accept outplacement services such as learning how to write a résumé or conducting a successful interview. In this case, you must still include the original amount of severance you would have received as part of your income, but you have the option to deduct the value of the outplacement services from your overall income.

Finding Yourself Without a Job (i.e. Unemployment)

For many people who experience the sudden loss of a job, unemployment benefits are vital to keeping food on the table and paying the bills. Unfortunately, most people aren’t knowledgeable about how unemployment benefits and compensation are taxed until they experience it first hand.

Why is this important to know? You may not realize unemployment compensation is added to any other income you earned and it is still taxable.

Job Searches and Deductions

One of the few bright lights at the end of the tax tunnel is the ability to deduct job search expenses from your taxes. In many instances, you can deduct expenses for job search even if you didn’t get that particular job.

Job search expenses that are deductible range from traveling to and from interviews, resume preparation and printing, professional job placement resources, and even postage.

TurboTax is up to date with all of these tax laws and will ask you questions specific to your tax situation so that you get every tax deduction and credit you’re eligible for.  Have a question?  Only TurboTax lets you talk to a tax expert whose a CPA, IRS enrolled agent, or tax attorney, free.

There are many determining factors that enter into the equation when making the decision about filing a tax return. Such items as filing status, income level, age, and whether or not someone claims you as a dependent play an important role in filing taxes.

Minimums to File

A good rule of thumb to follow when approaching the task of filing taxes is this: When in doubt, go ahead and file.

An important fact to know is that dependents are not always exempt from filing income tax returns. If you happen to be under 65 years old and another person is claiming you as a dependent on their individual tax return, you must also file your own tax return if you have $950 in unearned income or $5,950 of earned income.  Unearned income includes taxable interest and dividends. Earned income includes wages, tips, self-employment, taxable scholarship and fellowship grants.

Special Circumstances

The situations that follow require you to submit a tax return no matter what your income happens to be.

• If you are receiving distributions from a Health Savings Account or a Medical Savings Account.
• If you owe Social Security and Medicare taxes on unreported income from tips.
• Alternative Minimum Tax – if this tax is owed, you must submit a return.
• Retirement Plan and Health Savings Account – if you owe additional taxes on either of these accounts, you must file a return.
• Self-Employment – you have to file if you have earned more than $400 (net).

Not Required, But You Should File to Get a Refund

Yes, there are people who do not meet the minimum requirements, but still find a reason to file. Sound odd? Take a look at some of the circumstances that might give you the rationale to file your tax return…despite not being required to do so.

• If federal taxes were taken out of your paycheck, you can only get a tax refund if you file an income tax return.
• If you happen to qualify for the Earned Income Tax Credit, you must file a return to get your refund.
• You must file a return to receive the Additional Child Tax Credit, if you have children (obviously).
• If you adopted a child in the previous year, you need to file a return to receive the Adoption Tax Credit.

Remember, when in doubt, go ahead and file a tax return. Turbo Tax offers a Federal Free Edition of their tax software. It won’t cost you a thing to get started, and the software will help you easily prepare your taxes and help you keep more of your hard-earned money.  Have questions?  Only TurboTax lets you speak to CPAs, IRS enrolled agents, and tax attorneys while you prepare your tax return, free.

Even if you plan on filing a simple return with the standard deductions, preparing and organizing will help streamline your tax process.

No, it’s not a case of “easier said than done”. All you need is to follow these four simple and effective tips and ideas to help streamline your tax-season preparation.

1.  Where to Begin

One of the most prominent reasons Americans drag their feet when taxes are on the horizon is that they feel overwhelmed because they have no idea where to begin the organization process. When in doubt, make a list.

To begin your tax organization and preparation efforts, draw up a list of documents and papers you might need. The best way to start your list is by reading through your tax returns from the previous years, taking into account how you filed, which deductions you took, and which documents were necessary in those previous years.

Once you have your list and begin collecting your necessary documents, make sure to arrange them by category. It will be less confusing if you keep all of your deduction paperwork, like the interest on your mortgage and your property taxes, separate from your income, exemptions, and credit documents.

2.  Sort Out the Past

There’s nothing worse than filling out your tax forms with last year’s paperwork. But you would be surprised at how many Americans forget to remove their old files, receipts, and bills.

Yes you should keep all of your paperwork together, but you should categorize each tax return (and the supporting documents and receipts) by year. If you keep your past returns, that’s good. If you keep all of your past returns together in one big box with just a few paperclips and sideways layering, that’s not so good.

Before you get too involved in this year’s taxes, take the time to organize your past returns into separate folders labeled by the year. Make sure that none of last years papers, bills, or receipts find their way into the folder for your current tax year.

It’s also a good idea to make electronic copies of all of your tax returns and supporting documents, past and present.

3.  Everything Has a Space

Now that you’ve created a list of the documents that you’ll need based on previous tax returns, and categorized those previous returns by year, it’s time to create a space to sort your tax documents for the current year.

The best way to plan ahead and organize your paperwork is to create a filing system that you’re comfortable with (and that will keep things in order). If you’re comfortable with filing your paperwork in a shoe box, you might want to run down to the store and pick up an accordion folder.

Make it part of your shopping list to purchase a new filing container so you can get an organized start on your taxes. Clearly mark each category and store your filing system in a place where it’s easily accessible. After all, if you can’t get to your tax folders, you won’t sort your paperwork.

Again, it’s a good idea to make an electric copy of each document as you categorize.

4.  Be Vigilant

It’s easy to fall into the procrastination trap. After all, the tax deadline always seems so far away. But, as we all know, it may seem like a long way off, but April comes fast.

Don’t give up on organization, preparation, and control over your own taxes. In the end, you’ll appreciate the work and effort you’ve put forth.

To help motivate and educate you on your journey to the reward of filing your taxes, I’ve laid out some strategic tips and tactics that will take you from overwhelmed to empowered.

Never Give Up, Never Surrender

The best advice to offer you is this:  Taxes can sound scary, but persevere and give it a shot. Reading this article proves that you want to learn, so great job!

If you fall into the category of a “new tax filer”, chances are good that you have a simple tax situation (1040EZ/A), which just so happens to be easy and free! If you’re not sure which tax form you quality for, you can start out in TurboTax Free Edition.  Answer a few initial questions and in a few seconds TurboTax will tell you if you’re in the right place, or if you need a different product.

Help Along the Way

If you hit a speed bump along the tax highway, don’t pull over and give up on your trek. One of the benefits to using TurboTax is the abundance of assistance offered to each and every customer. If you do happen to get stuck, you can talk to an experienced TurboTax tax expert either by chatting on the website (directly on the screen where you’re stuck) or on the phone, free.  All TurboTax tax experts are CPAs, Enrolled Agents and Tax Attorneys, so you know you are getting quality answers.

Stay Organized

Although you should be very careful to organize all of the tax information and documentation you receive leading up to April 15, good organization starts early, even at the beginning of the new year.

Make sure you keep all of your important documents related to income and expenses.

Keep them in a safe and secure place. Once you begin filing your taxes, continue to keep everything tax-related and income-related together for safe and easy access.

How Much of My Income Gets Taxed?

Now that you’ve found about your tax situation, you need to know what and how much of your income is taxable.

Here’s just a sampling of what the IRS can tax:

• Pay from your job, whether you earn a salary or hourly rate, including any tips you receive.
• Sick pay from your job, company bonuses, or severance pay.
• Unemployment benefits.
• Interest from bank accounts and dividends from investments.
• Gambling and lottery winnings.
• Withdrawals from IRAs and annuities.

Deductions: Should You Itemize or Take the Standard Deduction

When you start filing your taxes, you’ll soon come to realize that your new best friend is the deduction. A deduction is basically an expense that you’ve had in the past year to which the IRS has given permission to be subtracted from your overall income total.

In other words, the cost of something you had to pay for can be subtracted (or deducted) from your taxable income. Since the expense was subtracted from your income, you’ll likely owe a little less. See, I told you – new best friend.

There are two basic categories of deductions: standard and itemized.

The standard deduction is exactly that – its standard, the same for everyone across the board, depending of course on your marital status and how you’re filing.

And guess what, TurboTax walks you through this entire process with simple questions to answer and will tell which one will help you keep more of your money.

US tax law is exhaustive. But you don’t necessarily have to be a tax professional to file your own taxes. Follow these tips, continue to educate yourself, and you’ll soon be on your way to tax filing success.

1099-MISC – The 1099-MISC, arguably the most common 1099, was created to cover all sorts of miscellaneous income such as freelancer income and work as an independent contractor. If you’ve received any sort of income over $600 form any source, be looking for a 1099-MISC in the mail leading up to April.

1099-INT – For those of you who’ve earned income from interest, such as investment or savings accounts, you will be using the 1099-INT to report this income to the IRS. This form details exactly how much interest income you’ve earned.

1099-S – Another 1099 that seems to be gaining in popularity as of late is the 1099-S form, which details real estate transactions. This form is pretty straight forward, and you should receive the 1099-S from your broker explaining your income from your real estate deals.

1099-C – The 1099-C reports any of your debts that were cancelled in the past year. As an example, if your credit card company settled the debt that you owed by forgiving $3000, then you would be required to report that amount as income on your tax return.

1099-R – For those of you who have been planning for the future, the 1099-R will find it’s way into your mailbox if you have taken money out of your retirement account or pension plan. Yes, those withdrawals are likely considered income.

1099-DIV – One of the last more “common” 1099 Forms is the 1099-DIV, which will be important to you if you have earned income based on dividends and distributions from your stock portfolio.

A Wise Approach

The overall purpose of the 1099 is to make sure that you, your source of income, and the IRS are all in agreement about your earnings. For a complete, comprehensive, and expert look at all 20+ 1099s, you can talk to a Turbo Tax professional about which forms you should be expecting.

Remember that all your sources of income will not arrive on one 1099 form.

Yet, in the middle of such happiness, someone (usually an uncle you only see twice a year) always seems to tell you how expensive a child will be in the 18 years that you’ll be responsible for them.

Medical Expenses

Depending on where and how you decided to have your child (hospital, birthing center, home care birthing specialists) you probably got popped with a pretty large medical expense to bring your little bundle of joy into this world.

Although paying medical bills isn’t too much fun, the good news is that you can deduct those expenses (as itemized deductions) on that year’s taxes, saving you quite a bundle.

I don’t know if it’s common practice, but my wife and I were still receiving bills from nurses and anesthesiologists when our baby was seven months old. This serves as a reminder to keep excellent records and store all of your receipts and documents in a safe place.

Your Child is Dependent on You

A new baby is totally dependent on his or her parents, but they also give mom and dad quite a nice tax break. The word on the street is that claiming a dependent (newborn or not) on your 2012 tax return will net you a $3,800 deduction. That’s $100 more than 2011 and you can claim this exemption no matter what time of year your child was born.

Your Child’s Gift to You

Not only do parents get to reap the benefits of a new dependent on their tax returns, but they also get another small gift from their little bundle of joy – the Child Tax Credit.

This year, the child tax credit remains the same at $1,000 per child. Here’s how a tax deduction and credit differ:

• a deduction reduces the overall amount of your taxable income
• while a tax credit reduces your tax bill by the actual dollar amount

This means that a $1000 Child Tax Credit reduces your tax bill by $1,000.

The Gift that Keeps on Giving – Your W4

Tax breaks on tax day are great, but don’t forget about your monthly take home pay.

When you have a child, this new person in your life also changes how you fill out your W-4 at work. Because claiming a dependent changes your tax bill, this means you may be able to now cut back a little bit on your tax withholding at your job.

Simply put, a new baby at home can upgrade your take-home pay. All you have to do is request to file an updated W-4 with your employer.

It might also be important to note that, if you’re a single parent, a new child might enable you to change your filing status from “single” to “head of household”. This simple change will increase your standard deduction.

Credit for Adoption

There are many people each year that adopt their new precious little bundle. And thanks to Uncle Sam, this scenario also comes with plenty of tax help.

In 2012, the Adoption Credit is worth $12,650 to help offset the cost of adopting a child. And for parents who adopt a child with “special needs” the IRS allows them to claim the full amount of the credit, even if the actual adoption costs were less.

No matter how you look at it, bringing a new child into your home and raising them to adulthood will cost quite a bit, but using TurboTax will help you apply all of the tax deductions, credits, and tax breaks that the government allows.

1.  Don’t Give Up on Last Year Yet

Even though it’s now 2013, there is still time to make some tax moves that will affect your 2012 taxes. One big move I would suggest if it’s available to you is to make a tax deductible contribution to a Traditional IRA. You have up until April 15th or the date you file your taxes to make a contribution for the previous tax year. This move would put more money in your retirement savings and it would be a big deduction from your income, likely lowering your taxes (or increasing your refund) by a nice amount. An IRA can be opened at a variety of places: discount online brokers, banks, mutual fund companies, etc.

2.  Getting a Tax Refund? File ASAP!

If you’re expecting a refund, make an effort to file your taxes as soon as you can. The sooner you get the money the sooner you can put it to work for you in a saving account, to pay down debt, or to spend on that vacation you’ve been wanting to take. Remember, this is your money, so don’t delay.

3.  Know Your Limits

Thinking about the year ahead I like to plan my savings goals for the year based on the published annual contribution limits set by the IRS on retirement, health, and education savings accounts. Each year these limits typically change, so you’ll want to adjust your automatic savings withdrawals to reflect the new yearly goal. For instance, in 2013, the contribution limit on Roth IRAs is going up to $5,500 for most individuals($6,500 if 50 or older). That’s about 458.33 a month for the next twelve months. Be sure to adjust your contributions to reflect this new year amount.

4.  Adjust Your W-4 Withholding

Another adjustment you should potentially make in the new year is to your employer withholding. Pick up a W-4 form and complete it based on your current situation. Big life changes like having a baby and getting married can have a big impact on your withholding, so be sure to keep your employer informed in the new year. The W-4 is your chance to tell your employer how to withhold for federal taxes.  TurboTax W-4 calculator can help you figure out how much you should withhold from your paycheck.

5.  Resolve to Keep Better Records

Finally, make this year the year when you keep better financial records. This will make your tax filing season much smoother. Keeping better track of your financial and tax situation could have a nice impact to your bottom line in the new year.

We’re approaching the end of the year, and in a effort to save you plenty of time, frustration, and even some of your hard earned money, we’ve assembled some very useful and insightful advice to help with your end of year tax planning.

Knowing Your Dates and Deadlines

It’s important to keep in the forefront of your mind that, although the filing deadline is April 15, you’re actually filing your income taxes for the previous year – January to December. It sounds like common sense, but it can get tricky at times to remember this small detail.

Reminding yourself about tax deadlines not only motivates you to get a head start, but it helps you stay focused and organized – which is always a good thing.

If you want to get a jump on your end of year tax planning (and not wait until April 14 to get everything together), use a checklist for your W-2s, 1099s, and other employer paperwork that you’re expecting from of all of your sources of income over the previous year.

Trust me, it’s easier to remember your 2012 income while it’s still 2012, and not in April 2013.

Investing and Giving

Another important aspect about end of year tax prep and planning is the December 31 deadline for investments or charitable contributions. Unless the government issues a specific law about an extension, you can be assured that December 31 is the cutoff date. This means that any payments, contributions, or giving on January 1 won’t offer you a tax benefit until 12 months down the road with the exception of IRA contributions.

If you’re always kicking yourself in April for not making smarter financial decisions during the previous December, kick that habit this year by making the maximum contributions before this year is up and lower your tax bill.

Some things to consider are: making the maximum contributions to your IRA, 401(k), and your child’s 529 college savings plan, or finding a church or charity to help with your donations or financial gifts. It’s a good idea to research the charity you choose and make sure to keep your paperwork and receipts.

No matter how much you usually put off filing taxes, remember that preparation and end of year tax planning will reduce your frenzied April frustration while helping you stay organized and focused.

Don’t let your tax extension cost you more. Take a look at some of the most commonly missed tax deductions by extension filers.

‘Out of Pocket’ or ‘Noncash’ Charitable Contributions

Even if you’re in a rush, it’s hard to forget about those larger monetary charitable contributions. They usually leave a pretty obvious paper trail.

But what about those smaller contributions made with your pocket change, your gas money, or by donating goods and services to local charities and non-profit organizations? When you’re already past the April tax deadline and you’re in a rush to file your taxes, it’s easier to forget to take the time to add up all of the small stuff.

Many extension filers admit to caring more about filing before October vs. making sure they get every single deduction. Don’t forget, adding up the small stuff can make a huge impact.

State Sales Tax

The State Sales Tax deduction is a tax deduction that gives you the opportunity to choose between deducting state and local income taxes on large purchases or state income taxes.

If you live in a state with zero income tax (South Dakota, Washington, Alaska, Texas, Nevada, Florida, and Wyoming) then this is your chance to deduct state and local sales tax since you won’t have any state income taxes to deduct. Unless Congress votes to extend this tax provision, then 2011 is the last time you will be able to take advantage of this tax savings.

Student Loan Interest

If you made student loan payments on qualified student loans, the interest portion up to $2,500 is tax deductible.

You can even deduct your student loan interest if your parents are making your payments as long as they are not claiming you as a dependent. According to the IRS, the payments may be looked at as a financial gift from your parents.

Earned Income Tax Credit

Figures from the IRS show that more than 25% of eligible tax filers forget to claim the Earned Income Tax Credit. Many people aren’t aware that they qualify.

On average, households which claimed the EITC last year saved an additional $2,000. When you sit down to file your taxes don’t forget to claim the Earned Income Tax Credit.

Don’t worry about missing these valuable tax deductions and credits.  TurboTax will help you take advantage of these and other tax deductions.

Off to college

But take heart – you’ve accomplished so much in the last eighteen years. You’ve raised a child from infancy to adulthood, prepared them for life, and are now sending them to college where they will continue to learn, grow, and become a successful part of society.

Congratulations! It’s time to celebrate. But it’s also a great time to examine your budget and find ways to lower your expenses while your children are off at college. The obvious advice is to downsize your house and vehicles. But here’s some more advice to really lower those monthly expenses.

Eating In / Eating Out

One of the best places for anyone to start finding ways to save money and lower their cost-of-living expenses is to examine and adjust how much they spend on food – eating at home and eating out.

The same is even more true for parents whose kids have left for college.

Make an effort to reduce the amount of food you buy to stock your shelves and fridge at home. Remember, that ‘bottomless pit’ you called your teenager isn’t around to empty the cupboard anymore. If you buy less food, you’ll end up saving money up front and you’ll end up throwing less out.

Not only does having your child away at college mean that there’s one less entree to order at your favorite restaurant, but that’s one less person having input on ‘what’s for dinner’. Many families these days eat out because their kids have grown accustomed to it.

Ask yourself if you really need to go out to eat tonight.

Insurance

Your child will need health insurance and, if they brought a vehicle to college, car insurance. The key phrase here is – comparison shop.

Sending your kids off to college is a great time to compare coverages of health insurance and car insurance, making sure that you’re getting the best price for you and your kids.

More than likely, your college student will stay on your health insurance while they remain a full-time student. But it wouldn’t hurt to check out any health coverage offered by the university.

And if your student isn’t taking a car to college, ask your insurance agent about a premium discount while they’re away from the steering wheel.

Lowering Your Taxes

Okay, so lowering your taxes isn’t exactly an active, everyday way to decrease your expenses. But, finding the best tools to get your taxes as low as possible can save you some big bucks each April.

First, you need to decide which will be more valuable – claiming your student as a dependent on your tax return or allowing them to file their own return. For example, your student may want to file on their own if they are expecting a few hundred dollars from the IRS. But as parents, you might be able to save a few thousand by claiming your child as a dependent.

Whatever strategy you choose, make sure you examine all of the available college tax credits and deductions that are made available to those seeking higher education.

Cable, Internet, and Entertainment

Do you watch as much television as your kids? Do you download as much music or as many movies from the internet? Are you playing online video games like your teenager?

If the answer is no, check out reducing the speed of your internet (internet providers love hiking up the price on faster connections), think about scaling back your cable or satellite TV channel lineup, and stop paying for online gaming while your kids are supposed to be earning a degree (yes parents, you don’t just buy a video game anymore, now they come with monthly costs too).

Saying ‘No’ to Adult Children

Let’s face it, most parents will always want to help out their children, no matter what their age or predicament. But there’s a fine line between helping your grown children and inviting them back into your home to continue raising them into their mid-to-late 20s or even 30s.

One of the best ways to reduce (or guard against potentially increasing) your expenses is to help your children understand that you’ll always be there for them, but that you expect them to begin living their lives as responsible, independent adults.

College Grad

Although finding a job in your career field may take some time, two key elements will help you sort through the confusion and land the job you want: staying prepared and developing a job hunting (or marketing) strategy.

Remember, finding your first job might be hard work, but it’s not impossible.

Customization is Key

Throughout your college career, during all of those technical writing classes, and even dating back to high school, you’ve probably read dozens or even hundreds of sample cover letters and resumes. Generic and unimpressive.

You’ve probably got a few samples or rough drafts saved on your computer right now.

Instead of trying to impress the hiring agent with typography and layout design, customize your cover letter and resume for each company that you apply to.

Mention some interesting facts about the company in your cover letter. Go a step further and talk about recent news articles pertaining to the company or its area of expertise. Dig deeper than the few facts on their website; do some research and show the firm that you are knowledgeable and enthusiastic about their company.

Whatever you plan, don’t send out your generic one-size-fits-all resume to every potential employer. More often than not, your familiar-sounding information will get lost in the shuffle.

Networking Outside the Box

Most graduates’ idea of networking includes hitting up professors, family, friends, and maybe the university’s career services department.

It’s time to take job networking outside of the box and ratchet up your capabilities.

Reach out to executives and hiring managers of the companies you’ve targeted in your job search. Websites like LinkedIn.com and Ryze.com aren’t just for seasoned professionals.

You can use these tools to network with company employees and other business professionals already in the field that you’re looking into.

Make certain that all of your networking profiles, whether strictly professional or simply social, are all employer-friendly. Recruiters are scouting Facebook and Myspace these days as well.

You can also make connections through business associations or visiting industry seminars and conferences.

Whichever method you choose, remember to show your passion for the profession, show your interest in the person that you’re speaking with, and be clear about your short-term and long-term career goals.

Great Interview, Regardless of a Job Offer

Let’s face it, interviews can be some of the most pressure-packed situations on the planet, especially when there’s no clear job offer.

No matter what occurs during your interview, maintain your professionalism and develop a rapport with the people at your interview meeting. Be clear and straightforward about your desires and expectations.

Even if you don’t get a job offer, a positive impression can go a long way. Your name could be moved to the top of their “potentials” list (great when another job becomes available), or your name might be mentioned when a recruiter from another company makes a friendly call.

Don’t Become Blinded by the Ideal Situation

There’s a fine line between settling for a job and holding out for your ideal career situation.

Although you’ll have to make your own choices when it comes to turning down a job offer or taking whatever you’re given, focusing too much on “ideal” can cost you some great opportunities.

Set reasonable goals when beginning your job search…reasonable, but high enough to satisfy your expectations.

Broaden your job hunting to include lesser known companies or less-glamorous positions. Don’t expect to start at the top, but don’t settle for a go-nowhere paycheck.

Don’t Give Up

It’s easy to get frustrated and exhausted when you’ve been on the job hunt for months with no leads. It’s easy to want to throw in the towel after ten or fifteen interviews without a single offer.

But the worst thing you could do at this point is give up.

Take a look at your resume and tweak it. After so many disappointing interviews, you should at least have some idea of what needs to be reworked in regards to the way you’re presenting your information.

Keep making new contacts through various networking avenues and keep up contact with professionals you’ve already met. You never know when an opening might pop up.

Sometimes the resilience you display during difficult times is exactly what someone needs to see before they hire you.

Also, remember job search expenses may be tax deductible, but not when you are looking for your first job.  Don’t worry, when you prepare your taxes for your first job you will still reap the benefits of a standard deduction and when you’re on you’re path to career growth and seeking a job in the same profession as your first, your job search expenses will be eligible for tax deduction.

But what to do with all of this free time on your hands? If you’re not tied down with summer classes, you might want to checkout the different opportunities in the workforce.

Sure, spending your summer wearing a uniform or a name tag might sound like a bummer, but think of the great potential to earn some much-needed cash in the next three months before you head back to class.

Think Big

Maybe you haven’t seen the statistics yet, but college students these days are graduating with mountains of debt. As a student of higher education, don’t throw away your three-month gift by being lazy and merely hanging out.

Be smart and get to work so you can pad your bank account with cold hard cash.

It’s like my football coach used to preach to us before the summer break: “You can either sit on your couch getting fat on potato chips, or you can spend your summer working out and getting bigger, stronger, and faster than your opponents.”

Instead of just lounging around this summer, get a job and make some money.

Live above the college debt statistics and start living financially smart. Especially if you’re living rent-free with your parents during the summer, spending your 4-6 college summers earning money could put you in a pretty great place by the time graduation rolls around.

Think of it like this; when you graduate, you could have potentially earned 12-18 months worth of pay by cashing in on your summer freedom. And even if you don’t save every penny, at least your job will supply you with cash and keep you from spending money you don’t have.

Work Smart and Hard

Before you head out job hunting, take a moment to think about what pays well, what perks are available, what you would like to do, and what has potential career experience.

• Gain Experience – It’s always good to get a head start on your career. Whatever you might be studying, check around town to see if there are any part-time job opportunities related to your major. It would be great to get paid for career experience.
• Tough Work Pays – Whatever you do, don’t overlook the hard stuff. Manual labor might not sound fun, but it can pay pretty well if you find the right situation. Sure, working for a roofing company might be harder than some job in the mall, but double check the pay before you blow off working outdoors.
• The Perks – Don’t forget about the perks. The free movies you get from working at a movie theater could potentially double your pay, depending on how many blockbusters you plan to watch this summer. And although food service might not be the dream job you’re looking for, free (or discounted) meals could help you keep more of your hard-earned money in your pocket.
• Focus on a Passion – What are you good at? Do you love to study? Do you love photography? Do you love writing? Just because you’re a college student doesn’t mean you can’t start your own business this summer. Tutoring, photography, and freelance writing will always be in demand.

When you start looking for a summer job, it pays to think outside the box.

Work Hard, Save Smart

It’s human nature . . . when you earn money, you want to spend that money. It also appears to be human nature to spend money you don’t have, but that’s another post.

Your college experience is a monumental time in your life. One way that college changes us all is that it transitions us from being coddled babies into well-rounded, productive grown-ups. Or at least that’s the idea.

One way to start your transition into becoming a financially smart adult is to start looking at the bigger picture – financially speaking. Learning discipline and self-control when dealing with your bank account is priceless.

As a college student, you are entering the part of your life where you will begin to pay for your own stuff. It might start small with paying for your own cell phone bill or your own credit card balance. But make no mistake, your parents are ready to stop paying for your stuff.

Saving up your college summer paychecks will give you a sense of the true value of money, it will start you on a financially wise path, and it will give you a financial boost when you graduate.

Tax Checklist

Think of it like you were packing for a long trip overseas. No matter how many times you’ve double checked all of your bags, it’s a good idea to triple check once more before you get on the plane.

We’ve compiled a list of necessary items to add to your checklist in a effort to safeguard you against any forgotten or mismanaged information. Even if you use tax preparation software like Turbo Tax to prepare your taxes, checking these last-minute items won’t do anything but help.

Number Confusion

Everyone knows their social security number by heart . . .right? Right. We’ll maybe. It’s not going to hurt to check your social security number for accuracy one more time. Make sure it’s correct and in the right place. The IRS reports this (incorrect or missing SSNs) as one of the most common filing mistakes.

All Necessary Paperwork

If you decide to use tax prep software, all you need to do is enter the correct amounts from your W-2s and 1099s, clip them to the printout, and file copies in a secure location. If, however, you choose to go the paper tax route, make sure to attach all of the necessary forms to your tax form before you mail it in.

Credits-a-Plenty

Yes there are many tax credits and deductions to choose from. Not everyone will itemize, but you should still double check the credits you are claiming and possible deductions that apply to you. Remember, Turbo Tax will guide you through the process of itemizing your deductions and then tell you if it is better for you to take the standard deduction or itemize.

You Can’t Blame the Post Office

This advice may seem less to do with tax prep and more to do with time management. But when the outcome directly effects your tax status with the IRS, everything is related to taxes.

If you’re mailing your tax return, check the hours of operation at your local post office. The IRS won’t care if you tell them the post office closed early. I hate telling people to check the hours of operation, because no one should wait until the absolute last minute to mail their return. But plenty of people do . . . so check your post office and make sure you get there in time.

The last day to file taxes in 2012 is April 17th. We get a couple of extra days because of the weekend and Emancipation Day.

Plan for Next Year

This bit of advice might save you time, money, and frustration . . . next year. As you’re preparing and filing taxes this year, make a list of the hurdles, frustrations, and bumps in the road you may be experiencing. If you were too unorganized this year, plan ahead to get everything lined up next year. If you’re refund is too big or if you owe too much, get with your employer to make the necessary adjustments so you’re having the IRS take out the proper amount of taxes from your current paycheck.