Roni Deutch and the Sacramento Kings Team Up for Tax Promotion

Last night the Roni Deutch Tax Centers partnered with our local basketball team – the Sacramento Kings – for “Kings Tax Night.” Representatives answered questions from Kings fans, and we gave away free State tax returns to everyone in attendance, as well as a few Federal tax returns. For those of you who might have missed last nights event, there will be another on April 3^rd. Mark your calendars, and in the meantime you can find a snippet from a Sacramento Business Journal on the event below.

The Sacramento Kings and Roni Deutch Tax Center have teamed up for a tax season promotion.

The NBA franchise will host a “Kings Tax Night” during Wednesday night’s game against the San Antonio Spurs and again April 3 against the Portland Trail Blazers.

The locally based tax preparation franchiser will have representatives available at Arco Arena to answer tax-related questions before, during and after the games. The company also provides all attendees 18 years and older with a free state tax return and a limited number of attendees with a free federal tax return.

During home games through April 15, ticket buyers will receive a tax gift certificate worth up to $50 off tax preparation services at local participating Roni Deutch Tax Centers. Up to 1,000 customers at participating Roni Deutch Tax Centers also will get a voucher for a pair of Kings tickets for select games, which will be redeemable at the Arco Arena box office.

Stimulus Benefits Could End Up Costing Retirees At Tax Time

Sandra Block of USAToday.com wrote an interesting article on how stimulus benefits could complicate the taxes of retirees. You can find a snippet of her post below, but the full text can be found here.

When lawmakers enacted the economic stimulus package this year, they included benefits for seniors. Smart move: Many retirees also have been hit hard by the economic downturn, and they vote in large numbers. Unfortunately, some of the tax headaches we discussed in an earlier column could also affect retirees.

Some examples of potential problems:

Taxpayers who receive a pension and have taxes withheld from their payments could end up owing money to the IRS next year.

In March, the IRS adjusted withholding tables to reflect the Making Work Pay credit, which is worth up to $400 for single workers, and up to $800 for married taxpayers who file jointly. The adjustments will apply to wages, but they'll also affect the amount withheld from pension payments. And that's a problem, because pension payments are ineligible for the credit, says Mark Luscombe, federal tax analyst for tax publisher CCH.

This won't be an issue for retirees who pay taxes on their pension payments each quarter instead of having their taxes withheld, Luscombe says. Likewise, individuals who receive a pension but also have a job may still qualify for the credit because they have earned income, he says. But retirees who have taxes withheld from their pensions and don't have any earned income may need to adjust their withholding to avoid owing money next year.

For information on how to avoid unpleasant surprises at tax time, go to www.irs.gov and search for Publication 919, "How Do I Adjust My Tax Withholding." The section titled "Retirees Returning to the Workforce" includes information for pensioners, and is relevant even if you're not going back to work.

Social Security beneficiaries who have earned income could end up receiving a larger credit than they're entitled to.

Next month, the Social Security Administration will deliver a one-time payment of $250 to more than 55 million Americans who receive Social Security benefits or Supplemental Social Security Income. For most beneficiaries, this won't create any problems. But seniors who receive Social Security benefits and also have a job could also end up owing the IRS money next year.

Here's why: If you're employed and have taxes withheld from your paycheck, you'll also receive the Making Work Pay tax credit. But the maximum amount you can receive from both programs is $400, says Michael O'Toole, director of publications and government relations for the American Payroll Association.

"If a single person is getting $400 in reduced withholding from a job, and getting the $250 economic recovery payment because they're collecting Social Security, they're going to be underwithheld by $250," he says.

As a result, Social Security beneficiaries who have jobs may also need to adjust their withholding.

Use Tax Time to Improve Your Financial Life

Earlier this morning I ran across this great article from TheChron.com discussing the ways you can use the time you spend on your taxes to improve your overall finances. You can find a snippet of the post below.

The day after Tax Day is one of relief for many last-minute filers. So I’m going to let you have your day of rest.

But the day after that is one all of us — early birds, deadline beaters and extension filers — need to designate as a new beginning.

April 17, Friday this year, is a good day to start re-energizing our financial lives.

“Tax time is a planning opportunity, not just a reporting opportunity,” said Brent Neiser, a certified financial planner and top executive with the National Endowment for Financial Education in Colorado.

Yes, the tax forms you’re filling out now — or trying to fill out or filed already — report your income, but they also give you much of the information you need to manage your money better.

Neiser’s organization is conducting a survey of tax-filers who use free tax help centers sponsored by the Internal Revenue Service to gauge taxpayers’ understanding of their own financial circumstances.

It’s a literal example of using tax time to improve personal finances that you can follow. Ask yourself:

• What is your family’s income?
• Where, what and how much do you owe?
• When are monthly bills due?
• What are your occasional big expenses?
• What are your fixed expenses?
• What are your controllable expenses?

Plug those answers into the money management worksheets at NEFE’s SmartAboutMoney.org under the resource library link to shape your spending plan and set financial goals.

Next, start researching new tax changes for 2009. The stimulus package has several new laws that will create certain tax benefits for many people. More are likely to follow these.

One in particular to note is the first-time home buyer tax credit.

Taxpayers who buy their first home between Jan.1 and Dec. 1, 2009, can claim a credit of $8,000 or 10 percent of the purchase price, whichever is smaller.

And unlike the version of this credit in place for 2008 home purchases, the credit does not have to be paid back as long as you live in the house for 36 months after the purchase date.

Another thing you should know is for purposes of the tax credit, a first-time home buyer is person or couple who has not owned all or a portion of a principal residence in the United States during the 36 months before purchasing the home for which the credit is claimed.