April, 2009

Filing electronically or through the mail?

This year, for the first time, more Americans e-filed their taxes than used paper and the post office. By the end of tax season, 57% of filers will use their computers for the convenience and speed of returns.

Income, age and gender all play a role in whether or not a taxpayer will file online or through the mail. Two thirds of women will file online this year, compared to only 52% of men. Younger taxpayers are also more likely to e-file; as you probably guessed, there’s a strong correlation between age, and attachment to paper filing. And taxpayers making more than $60,000 are more likely to e-file than those making under.

Think you’ll get a refund?

The biggest surprise coming out of the poll is: While nearly half of Americans believe they’ll get a tax refund, nearly one third of that group thinks the government will run out of money before the tax refund check arrives. More Americans are afraid the government will run out of money, apparently, than are afraid of being audited.

Better than the dentist?

Would you rather do your taxes, or go to the dentist? Unfortunately, we all have to (or should do) both, but according to the survey, 48% of Americans believe doing your taxes is worse than going to the dentist.

The poll doesn’t explain why, but we can guess: unlike the IRS, the dentist gives you something for the pain.

The “Pet Food Deduction:” While you can’t write off your pets as dependents (sorry, Leona Helmsley), one couple wrote off pet food as a business expense. How? Well, the couple owned a junkyard, and needed a way to keep snakes and rats away from their customers. So, they started feeding stray cats, enticing the felines to live in the junkyard and work for their keep as exterminators. The IRS allowed that the food to feed the cats was a business expense.

The “Body Oil Deduction:” A professional bodybuilder convinced the IRS that the money he spent on body oil—which made his muscles gleam under the hot lights at a competition—was a business expense. However, the IRS flexed a little muscle in the court case, too: The professional was not allowed to write off his vitamin supplements.

The “Breast Implant Deduction:” Her name was Chesty Love, and she was a stripper. In an effort to get more tips, Chesty had her breasts augmented to a size 56-FF and then wrote off the expense.

The “Private Plane:” A real estate investor who bought his own plane in order to check on his rental properties was allowed to deduct all business-related expenses on the aircraft. (We have a feeling the former CEO of General Motors had a harder time writing off his private plane).

Listen to Gil read all eleven items in the player located on the left side of this page.

Or, click here to read the original article.

1. Limit heat sources. Jon says that if you’re looking to cut your electricity use, the best place to start is with any appliance that produces heat. So, your electric toothbrush? Not too much of an energy drain. But your hair dryer? Big one.

The biggest drains are those appliances that need to be on for long periods of time. Think space heaters and electric blankets. Your toaster or coffee maker are only on for a little bit of time, but if you want to save money, think about reducing the amount of time you use the electric blanket; consider using it for ten minutes before you get in bed, instead of all night.

2. Look at the label of all your appliances. Of course, you want an appliance that has a UL safety certification. But all electronics also list details about their power draw, including the watts or amps it needs to run. This is the figure to look at—if you’re comparing two UL-certified products, try to get the one that draws less power. It may only be a small savings, but those pennies add up over time.

3. Unplug your cell charger. How many little black boxes, whether cell chargers, stereo systems or televisions, do you have plugged into the wall? The cell phone charger is a prime example: you may only need it for an hour or two, but many people leave them plugged in all day for convenience. Well, that convenience is costing you! You may think one item is insignificant, but if you add up all of the appliances that are drawing power 24 hours a day, you’ll take notice.

Unplug your cell phone charger; or, if that’s too much to remember, just get a surge protector that can be easily switched off. This is especially great for televisions, cable boxes, TiVos, and any location in your home with a large number of power cords.

Pending Home Sales Index: We haven’t seen a big jump in pending sales, but the numbers are headed in the right direction. Sometimes, markets move quickly — but sometimes, movement is slow. This may be the case here.

Affordability: It’s easier for American families to buy now than at any time in nearly 40 years. With the $8000 tax credit, low prices, low interest rates, and high inventory, more and more Americans are jumping in to buy a home – action which may push up sales.

Vacation homes and investment properties: Second homes follow the overall market trend down; the market share of vacation homes was down by about 3% from last year. These investment properties did not drop in market share, however. And, most interestingly, many people are buying second homes in cash! Is this because real estate is a safer place for your money than a bank?

What do you think? Give us a call!

Start with the front door – at the hardware store, you can buy caulk and insulation for a small investment. If you caulk around your windows, insulate around the door, and make sure you put insulation in the attic, you can reduce your utility bills by about 30%.

Careful eating – As Clark says, most of us “bleed money eating” whether we’re eating out too much or even just shopping for groceries. He recommends conditioning yourself to shop differently; the site CouponMom.com is a great place to start. CouponMom — who has a self-admitted obsessive compulsive disorder — advertises that she can cut your grocery bill in half.

Watch TV for free — Clark believes everyone should cut their TV costs down to zero. Check out Hulu.com, a website that allows you to watch some of your favorite programs, or Boxee, a free software download available at Boxee.tv. Using either of these tools, you can plug your laptop into your tv, and watch almost anything you want. Hulu even stores old seasons of shows, giving you on-demand television!

Finally, disconnect your phone — Clark says you don’t need it. If you’ve got a cell phone, you should consolidate. And for that cell phone, Clark recommends using the company Boost Mobile. They offer unlimited calling, no roaming charges, email, and much more for a $50 a month fee. That’s a big savings for a lot of us.

Visit Clark’s Web site for more money saving tips — and tune into the Clark Howard Show.