Four Tips to Save Gasoline This Summer

During the summer months many American families go on vacations. Because of the poor economy, more and more taxpayers are taking road trips, but the gasoline bills can quickly add up. WalletPop.com put together a helpful article with four ways to save gasoline. I have included a few tips below, but you can find the full list including a video here.

Turn off your air conditioner

Consumer Reports found that driving 65 MPH in a Honda Accord with the air conditioner running reduced mileage by 3%. But turning off your air conditioner and driving instead with the windows down is controversial, with some saying the drag on the car's aerodynamics cuts down on fuel efficiency and others saying no problem. The Consumer Reports team didn't find any measurable difference in fuel efficiency driving with the windows down, but others have. The jury is still out.

If you're hot, or your car is older, just roll down your windows already. Give your car a break and be kind to the environment.

This tip might not be realistic if you live in desert areas like Las Vegas or Phoenix. Still, you can help keep your car cool by parking in the shade, and using a windshield light reflector when parked.

Stop driving like a maniac and keep to the speed limit

Although it's tempting to speed, the urge will end up costing you. Besides breaking the law if you go over the speed limit, (and a couple of $200 speeding tickets will not help your wallet any this summer) driving aggressively will lower your gas mileage by 33% on the highway and by at least 5% on surface streets. An Edmunds.com independent test found this one tip resulted in more savings than any of them. The lesson? Try to drive zen. You'll get where you're going, we promise.

Continue reading at WalletPop.com…

9 Warm Weather Ways to Lower Your Tax Liability

It is quite unbelievable that August is just around the corner, and as the triple digit heat is keeping many indoors, there are a few things you could do to both make your summer more enjoyable, and lower your tax liability. Making tax savvy decisions throughout the year can ensure a lower tax liability come April.

1. Upgrade your Air Conditioning

If you have an old air conditioning system, and looking to upgrade, not only will a new, energy efficient model reduce your electric bill but it can also lead to a federal tax credit. The American Recovery and Reinvestment Act of 2009 created a $1,500 tax credit for energy efficient home upgrades, and if you purchase a qualifying model it could result in significant tax savings.

2. Enroll in a Local College Class

Looking for a way to spend some of your free time on the weeknights or weekend? Consider enrolling in a local college class. Not only will you be able to pick up new skills that could help improve your career, but you can take a tax deduction for tuition and other mandatory school fees. This is called the Tuition and Fees Deduction, and is reported directly on Form 1040 or Form 1040A.

3. Dual Pane Windows

Single pane windows were common among houses built a few decades ago. If your home still has single pane windows, I highly recommend upgrading to dual pane. They will increase the value of your home, lower your energy bill, and can qualify for the $1,500 energy tax credit.

4. Install Solar Panels

Next time you are outside and feel the heat of the sun beaming down on you, consider installing solar panels on your rooftop. They may be expensive, but you can claim a tax credit for up to 30% of the price of the upgrade on your next tax return. To learn more about solar tax credits, check out this link at EnergyStar.gov.

5. Volunteer with your Children

If you have children that are out of school on summer break, consider taking them to volunteer at a local charity such as a soup kitchen or meals on wheels group. Although there is no deduction available for volunteering your time, all expenses related to the effort are deductible such as supplies donated, or miles driven while volunteering.

6. Send your Kids to Day Care

Parents of children under the age of 13 can quality for a tax credit if you need to send them to a day camp during summer break. The costs associated with enrolling your children in day care can count towards the Child and Dependent Care Credit.

7. Start a College Savings Account

Although most students have the summer off, the new school year is going to begin in just a few weeks. As your children get older, you might want to think of opening a 529 college savings account. There are two different types of 529 plans, but they both have significant tax benefits.

8. Throw a Summer Office Party

If you run a small business, then throwing a summer office party is a great way to show your employees how much you appreciate their hard work. Additionally, the cost of supplies such as food and beverages are fully deductible business expenses.

9. Buy an Energy Efficient Vehicle

As I explained in this blog entry from a few weeks ago, there are still plenty of vehicles that qualify for a federal tax credit. During the summer months plenty of dealerships offer incentives for buying a car, meaning you can get a great deal on a new vehicle and a valuable tax credit.

Mid-Year Tax Planning: The Perfect Summertime Activity

The year is now half over and although most Americans wait until next April to think about taxes, I highly recommend tax planning throughout the year. The summer is a great time to review your finances since you will still have six months to make any changes to your withholdings, or take action to lower your tax liability.

Mid-Year Tax Projection

Since the year is half way finished, you can easily estimate what your total income for the year will be. Unless you anticipate a new job or are self-employed and unsure of your earnings for the rest of the year, you can simply add up your wages from January through June and double it. Using the 2010 income tax brackets you can then calculate your total federal tax rate. Look to see what you have already paid in federal taxes, and if your total taxes paid is less than half of your yearly tax liability then you might want to consider adjusting your withholdings or making an estimated tax payment.

Review your Withholdings

If you are underpaying on your federal taxes, you might want to adjust your withholdings. For wage earning employees, you can simply ask your employer for a new IRS Form W4. Either change your allowances or have an additional dollar amount withheld from your paychecks. If you have been overpaying the IRS, you might want to change your withholdings to have less taken out of your paychecks. Although you might not get as large of a refund in April, you will have more money in your wallet each month!

Estimated Tax Payments

If you are self-employed or have decent capital gains throughout the year, it is especially smart to calculate your 2010 tax liability. The IRS will asses a penalty if you underpay your taxes, so it might be a good idea to make an estimated tax payment. The most recent quarterly tax payment due date was June 15^th, but you can always make a late payment. The next payment is due Sept. 15. To learn more about estimated tax payments check out this entry on the Roni Deutch Tax Center – Tax Help Blog.

Organize your Files

When you have a few hours free, it might be a good idea to look over your financial records and tax related documents. Make sure you have documentation for any tax deductions or credits you plan to claim: all of your pay stubs, and receipts for any business or travel expenses you intend to write off. If you are missing any receipts you should try looking for documentation via your credit card or bank statements. This will be easier to do now, instead of six months from now when you might not exactly remember what day it was you took that client out to lunch or where you went.

Retirement Accounts

Depending on your unique financial situation you might want to consider opening a retirement account this summer. If you have a little extra money after your summer vacation why not use it to setup an IRA or 401(k). Some retirement plans – such as traditional IRAs – have significant tax implications and can lower your total tax liability.

Give to Charity

Another great way to lower your tax liability is to make charitable contributions. You could donate your winter clothing, as you will not need it in the hot summer weather, or any other household items you no longer need. Additionally, as the BP oil leak continues to spew oil into the Gulf you could make a monetary donation to a group working on the cleanup such as the National Wildlife Foundation.

Teach Your Teen Paycheck Savvy

Summer break is here for most teenagers, which is often a time when they enter the workforce for the first time. Although having cash of their own is an exciting time for any team, it can lead to frivolous spending habits. Earlier today CNN Money posted a helpful article on how parents can help their teens manage that first paycheck. If you are a parent of a teen with their first job then I highly recommend checking it out.

Have the tax talk

Better explain the harsh realities of gross vs. net before your teen gets any big ideas about what she'll spend her wages on. She may not yet understand that taxes will be withheld from every paycheck. So sit down with your child to go over that first pay stub, explaining how and why taxes are taken out, as well as the difference between income taxes (which most teens are likely to get back when they file tax returns) and FICA taxes (which they won't). "This will be a real shock to them," says Adam.

Take it to the bank

Help your kid open two bank accounts -- one savings, one checking. Spend time together comparing fees and rates online, looking specifically for a no-fee checking account meant for teenagers. You'll have to co-sign the accounts, but it's worth it so your kid can start learning to use an ATM card and keep his balance in the black. (Just don't forget to mention the exorbitant costs of using another bank's ATM.)

Your child may balk at an analog check register but might enjoy tracking expenses online via Mint.com. To motivate him, explain about the $30 overdraft fees the bank will rapidly bestow if he messes up budget calculations. And remind him that at minimum wage, it would take most of a day's work to recoup that expense.

Don’t Let Cooling Costs Get You Hot

After a slow start, the summer heat is finally hitting Northern California. Here in Sacramento, summer temperatures routinely hit 100 degrees. With heat like this you need some cooling strategies. MSNBC shared some ways to keep your cooling costs down this summer.

Air Conditioners

Choosing the right a/c unit for your home is crucial. Make sure you get the right size and power for your home, too small and you’ll never get cool, but too big and the unit will not work efficiently and leave you feeling damp and uncomfortable.

If you are installing a new central a/c unit, remember to look for that Energy Star label, and see if you qualify for “Green” tax credits. They can give you up to 30% of the unit’s purchase price on your 2010 tax filings. Not too shabby!

Seal and Maintain

No matter how well your a/c system works, if your home isn’t properly sealed you are just wasting money. Even minor air leaks can cause huge energy bills! Sealing your window frames, installing proper weather stripping on your doors and ensuring proper installation of your air conditioner helps make sure you keep every bit of that cool air in your home.

For more tips on reducing energy costs while staying cool this summer, read the full article on MSNBC.com.

Summer Tax Institute at the University of California, Davis

While most people aren’t likely to associate the warm summer season with taxes, many tax professionals certainly are. The twentieth annual Summer Tax Institute is scheduled for June 14-17, 2010 in California. The institute is an educational program of the Center for State and Local Taxation.

The Summer Tax Institute is an intensive, 4-day educational program for professionals that attracts attorneys, accountants, state tax officials, tax directors, tax managers, and others seeking expertise in the area of state and local taxation. A certificate of completion (for continuing education purposes) is provided at the end of the program.

The program is said to be highly successful. According to the UC Davis Summer Tax website, www.summertax.org, it states that in written evaluations it has been indicated that over 95 percent of the participants would recommend the Institute to others. Also, students come from both the public and private sectors and represent accounting firms, law firms, state agencies, and private industry from throughout the country.

The site also boasts that tuition includes course materials, daily continental breakfast and lunch, a welcome reception on Monday night, and an excursion to the wine country for “dinner amid the vineyards” on Wednesday evening. It looks like the Summer Tax Institute reaches enrollment capacity most years, therefore, early registration is strongly recommended. What are you waiting for tax professionals?!

Hire this Summer and Get a Tax Break

If you are an employer, you don’t want to overlook the HIRE Act tax benefits. If you are looking to hire some new employees, college students are a great idea for a summer position. This is exactly what Congress is trying to encourage people to do, hire an employee who hasn’t worked more than 40 hours in the last 60 days before getting hired, and you may qualify for a temporary tax break. Passed in March, the Hiring Incentives to Restore Employment (HIRE) Act would allow an employer with any qualified hire after February 3rd to skip paying the 6.2% Social Security taxes on the worker’s wages from March 19 through the rest of the year. This would save an employer nearly $2500 on $40,000 of pay.

A qualified hire would be someone who is unemployed this year (after February 3, 2010 and before Jan 1, 2011) and has not worked over 40 hours in the last 60 days.

The law is most useful to large corporations where they can use the HIRE provisions to save millions of dollars, but the law is also useful to small businesses. For example, these tax breaks work for businesses this summer who want to hire kids on summer break to help with paperwork or businesses that want to hire college students who haven’t worked elsewhere in the last 60 days and therefore, would be considered a “qualified employee.”

Summertime, When The Livin' Is Pricey

Summer is on its way, and so are costly summer activities. As MP Dunleavey of MSN Money points out, although summer seems harmless with its lazy afternoons and warm weather, costly summer activities can cause serious financial troubles for many American taxpayers. Check out a few of Dunleavey’s tips for summer budgeting below.

The catalogs are coming

I know. You want to believe that summer doesn't pose any financial risks. You want to sit on your patio and drink a cold one and pretend you're not going to read the Boden and Brookstone catalogs.

Well, take those rose-tinted sunglasses off and look at the dangers:

• Wedding season.
• Graduation season.
• Long weekends where you go somewhere or guests come to you -- either way, it's expensive.
• Home improvement season (my husband is painting as I type).

Continue reading at MSN Money…

Summer Job Outlook Is Cloudy

From CNNMoney.com:

The search for a summer job won't be any easier this year, despite nascent signs of a recovery.

Almost half of hiring managers -- 47% -- don't plan to hire any seasonal workers this summer, said a survey from hourly job site SnagAJob.com. That's about the same as last summer's 46%.

The majority of respondents, 54%, said they think it will be "difficult" for teens to find a summer job this year. The survey did not ask that question last year.

"Just like last summer, employers have a wide range of [applicants] this year," said Shawn Boyer, chief executive of SnagAJob.com. "When managers can pick from the cream of the crop, it makes it tough for those applying."

Teens were likely hoping for a sunnier outlook this year, since 2009's summer job openings were slim amid a churning economy. But even as the recession has begun to abate this year, the unemployment rate remains at 9.7%.

IRS Summer Tax Tips

To help people with tax planning, the IRS has published Summertime Tax Tips to provide useful and information and advice on topics that affect millions of taxpayers. Though people don’t usually think about their taxes until closer to tax season, the IRS is encouraging taxpayers to take steps this summer to avoid potential problems. The IRS is publishing three tax tips per week. Topics range from how parents can get credit for sending their kids to day camp to using an online calculator to fine-tune your federal withholdings. You can see all of the tips at the IRS’s summertime tax tips page.