Archive - April 2010

1
Could a Roth IRA Conversion Affect a Student’s Financial Aid?
2
4 Steps to Managing Your Credit Cards
3
15 Facts About Amending Your Tax Return
4
What Your Tax Return Can Teach You
5
Thinking of a Roth Conversion? See How a New Surtax May Affect You

Could a Roth IRA Conversion Affect a Student’s Financial Aid?

An underreported story. In 2010, we have a wave of IRA owners converting traditional IRAs to Roths. There are all kinds of compelling reasons to make that move. Yet for some IRA owners, the Roth IRA conversion may have an unintended consequence: it may reduce their son or daughter’s chances for college financial aid.

A Roth conversion will increase your taxable income.
As some scholarships, grants and loans are awarded based on income levels, a big jump in AGI could potentially jeopardize them. This can be a problem if you’re a “millionaire next door” who wants your kids to exploit …

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4 Steps to Managing Your Credit Cards

As new credit card regulations go into effect, it’s important to still follow some basic practices.

1) Start with the “need versus want” outlook for your purchases. For example, you “need” food for Fido the dog, but you “want” the rhinestone dog collar. Think before you use the credit card to fulfill a “want.”

2) Although credit cards are a convenient way to pay or to delay payments, paying in full each month is crucial. When you carry have a balance – and especially if you miss a payment – the cost of the item will be inflated. A missed

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15 Facts About Amending Your Tax Return

For a multitude of reasons, many times it’s necessary to file an amended tax return.  It could be that you received additional information contrary to what you originally used for your return… or maybe the IRS sent you a notice about something that needs clarification.  Or, possibly you are taking advantage of a credit that can be used retroactively, like the first-time homebuyer’s credit. Whatever the reason, you need to file an amendment.  This isn’t usually a big deal, especially with software-driven return preparation – but there are a few things you should know about your amended return.

Ten Facts

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What Your Tax Return Can Teach You

Tax season is behind us, and it’s time to move ahead with 2010. But we need to take a minute or two more with our 2009 return before we send it off into the black hole of all things stored. We can learn a great deal about the current year by reviewing last year’s return. This is one reason why I strive for all my clients to file timely (by April 15th).

First, look is at the bottom of your return. Did you have a balance due, or did you receive a refund? This will illustrate how well you planned. …

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Thinking of a Roth Conversion? See How a New Surtax May Affect You

Income taxOne of the provisions of the Healthcare bill that was signed into law in March, 2010 is a brand spanking new tax – a surtax on investment income over certain amounts.  This surtax will come into play beginning in 2013.  The amounts are, admittedly, rather high, but nonetheless will impact a lot of folks.  What you may not realize is that, due to the application of this surtax, it could be more beneficial to do a Roth IRA conversion now, at the “old” tax rates, or even spread the tax over the next two years (as is allowed for conversions… Read More

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