Your Tax Return

Your tax return 2011 will need to be filed before April 15, 2012, for those not keeping track.  It’s important to be aware of the deductions you’re planning to take right now.  Keep track of your expenses and have them readily available for your tax professional to refer to when needed.

Preparing for your 2011 tax filing can be relatively pain free if you set up a system which organizes tax deductions, exemptions and tax credits. Start by having a clear understanding of your earnings.  Next keep a record of all your deductions.  Keep them organized by category.

Medical costs should be labeled and separated from other expenses.  Most people rarely accumulate 7.5% of their income in medical expenses, but many people do, so keep track of premiums for health insurance, taxi rides to doctor’s offices, co-pays costs, deductibles paid and medicines purchased.

Also keep track of taxes paid to the state and local jurisdictions, real estate taxes and interest paid for real estate. Keep a good record of church tithing and other gift giving. Watch your record keeping, don’t repeat things and don’t leave things out.  Allow your tax professional to throw out what cannot be used.

Preparing your 2011 tax does not have to be an ordeal, if you plan and prepare for their preparation.  Organize your records and keep the information up to date and properly labeled so both you and your tax preparer can identify them.  Be honest with your taxes because you don’t want to be audited and you want to keep a clean record with the IRS.  Always plan ahead and keep track of all your rightful deductions.

The Tax Rate For US Corporations And Microsoft

The US 2011 tax revenue should be higher than ever, if you look at the surging profits of corporations like Microsoft and others, but you may want to look at their quarterly results for some clues as to what’s happening to US corporate taxes.

Things were looking pretty good for Microsoft at the end of 2010, with a 30 percent increase in profit and a gain of roughly 35 percent per share. At the same time, the IRS and other countries didn’t see numbers anywhere near that.  In the United States Microsoft paid just under $500 million in taxes, and in other countries, they were paying as low as 7% rates on their multiple billions of dollars in profits.

Considering how important the deficit is in the political world today, along with the condemnation of companies who use overseas accounting work to get out of a good amount of their taxes, it’s interesting to see how Microsoft’s accounting wizards were able to work their number down to such a low amount.

Part of this, in fairness, was from an overpayment in the past, as well as Microsoft themselves generally overestimating the taxes they owe in a given year.  And they may be doing more business with individuals purchasing their products in other countries as well, but it’s hard to guess at what effect that may be making.

But it’s clear that Microsoft is able to channel buyers through the countries of Puerto Rico, Singapore, and Ireland, countries with extremely low tax rates.  By working through these countries, they are able to get around much of the amount they should be paying.

The standard tax rate on a United States corporation is 35%.  When Microsoft pays less than half that, you can see that revisiting the US corporate tax law may be necessary.

Handling Taxes Can Be Rough – Hire a Tax Consultant Instead

Managing your own business can be rough, especially if you’re a first time business owner. One aspect of handling a business that gives many people trouble is taxes. Learning the tax code can be very complicated and the law changes every year. If you want to stay on top, you need a professional that is up to date and can use the tax code to your advantage. An excellent tax consultant can help save you money, but sometimes trying to find one can be a hassle. If you want to stand any chance of recruiting a good consultant, don’t wait until tax season to do so. If possible, you want to book their services several months in advance. Even if you don’t think that you need a consultant now, why not give their services a try and see what they can do for you?

Handling taxes and legalese can be very complicated. If you’re not willing to learn the code yourself, hiring a consultant is the next best thing. As long as you find a trusted one, they can help save you unimaginable amounts of money. Of course, there is still the possibility of you hiring a green consultant, but if they are willing to learn, even someone new to the world of taxes can be a huge help. A fresh pair of eyes is always a good thing when it comes to managing a business. Make sure that before you hire someone, to check their background and former experience. Look over several candidates and pick the consultant whose speciality matches your business properly. Each consultant works in a specialized area, so you want to be sure that they can actually help you. The rules for tax applies different to single people, businesses, or contractors so choose the right person for the job.

It may be a hassle to hire a consultant the first time, but once you do, you often stay with the same person forever, except for retirement or death. Once you get through the upfront time consuming process of hiring, and they get the chance to show their stuff, they’ll be able to save you tons of time, money, and hassle. Many people with businesses that fail to have tax consultants sometimes run into trouble, so you may as well be prepared beforehand. You have no idea how much money you are leaving on the table until you hire the services of a good tax consultant.

Inheritance Tax Planning Helps You Get the Largest Financial Value

While inheritance tax planning helps you to focus on protected money that you may need to spend in the future, top divorce lawyers exist in order to help you get the largest financial value from the breakup of your marriage. When you are headed to court as a result of marriage troubles, this can be one of the most emotionally difficult times in your life. However, it is very important that you think with your head instead of your heart, having the right legal services on your side would help you to obtain the largest amount of spousal support for your circumstances. Additionally, you would be able to get more child support than you would otherwise be awarded with another lawyer. The children that you have deserve to be taken care of in the best way possible, more support would significantly improve the quality of their lives.

These top divorce lawyers would also be able to help you with a custody battle against your former spouse. One of the most difficult decisions that the court must make would be to determine where your children will live until they are of age. If you love your children and want to make sure that they remain in your custody, it would be an investment worth making by hiring the best legal services that you can afford. Success in court is about having the knowledge and experience to present arguments in the most effective way possible. When you have the best, you will be able to rest peacefully because you will know that everything possible is being done in order to provide you with the outcome that you desire. If you expect to come into some property in the future, inheritance tax planning services are an affordable way to start dealing with taxes and removing financial obligations.

Best Use of the Tax Refund

Tax time starts creeping up as soon as the calendar turns to the New Year. No matter how you feel about the experience, it is one that has to be done. What you do after filing your taxes may be the key to setting the tone for your financial future. Finding the best use for the tax refund starts with careful planning and then continues with consistent follow through.

Making Plans for the Tax Refund

1.      Make a list of all the places you would like to use the tax refund.

2.      Put them in order of most important to least important.

3.      Estimate cost of each of the items.

4.      See how far the tax refund would go if you were to spend it on each of the items on the list.

5.      Repeat the process several times over the next few weeks to see if your needs, wants or desires begin to shift.

6.      Only begin to make your purchases AFTER the tax refund has been deposited.

Possibilities for the Tax Refund

  • Look at the big expenses. The last year was a tough one for many people trying to meet the expense of a mortgage. A portion of the tax refund could be used to set up an account that would cover three to six months worth of mortgage expenses if necessary. It would provide some security for the upcoming year.
  • Consider the unexpected. The cost of insurance deductibles, surprise auto repairs or even medical expenses can hurt a budget that is already on tight ropes. One of the best uses of the tax refund can be in setting up an emergency account that would only be used to cover any of those unexpected costs.
  • Pay off a debt. The release that comes from paying off a debt can be a great motivator for tackling the next debt. Review any rotating credit balances or other outstanding debts. Consider using a portion of the tax refund to pay off that balance in full.
  • Invest in the future. Now may be the best opportunity to attend that seminar or take that class that will help you move up the ladder in your career. Measure the amount of increase you will receive with the amount of investment (including time, energy and finances) that it will cost and then thing about taking that leap.
  • Give it away. Put a portion of your tax refund to work for others. Setting aside as little as 10% can go a long ways towards helping your favorite charity meet its budget demands.
  • Invest in a little fun. The tax refund represents a full year of work. Splurge a little on something fun or exciting for the family. Set aside a portion of the tax refund for a great vacation or for a toy the whole family could enjoy (like that outdoor pool table you have been talking about).

There is never one way to spend the tax refund, but there can be one best way. It all starts with preparation. Thinking about the money and how it should be spent will start the process moving in the right direction. Evaluating the options several times begins to focus in on the best choices. Waiting until the check has been deposited will help to complete the package.

No matter when you plan to face down the tax man, start planning on the refund right now. The more time you invest in planning how to best use the tax refund then the more likely you are to make choices that will push you towards a solid financial future.

Nicole has been in the finance industry for 3 years, currently she blogs about the different ways for people to maximize their savings through the use of a brokerage account.

Costa Rica And The US Overseas Retirement Market

For many US baby boomers with nest eggs that have shriveled during the recent financial crisis, an overseas retirement can make financial sense. Once they shift their perspective offshore, the Central American region captures a fair share of attention given its close proximity to the US. There are many connecting flights that travel daily from US airports. Costa Rica attracts more retirees than its neighbors, and here are some of the reasons why.

Costa Rica has been a popular vacation destination for decades, as well as a hot retirement spot. In fact, the country boasts the largest population of US expatriates in the region, so current retirees are following in other US citizens’ footsteps.

Costa Rica is aggressively attracting retirees by launching the first ‘retiree program,’ which offers tax benefits, exemptions, and discounts. Panama, Nicaragua, and Belize have all followed suit, rolling out their own retiree programs, but Costa Rica was the first country to put such a policy in place, actively seeking out retirees.

Costa Rica has long held a tradition of environmental protection, as evidenced by the country’s tourism slogan, “No artificial ingredients.” Tourists aren’t the only ones enjoying Costa Rica’s biodiversity. Retirees also take advantage of the national parks and beautiful landscapes.

Retirees prefer to move to more established parts of the country that provide well-serviced amenities and infrastructure. Costa Rica has a number of well-developed second home and retirement destinations available. The country is sometimes known as “The Switzerland of Central America.” Combine this with a stable democratic government and a diverse economy, and it’s easy to see why investors, tourists, and retirees flock to Costa Rica.

There is also Costa Rica’s lower cost of living to consider. Real estate in Costa Rica is much more affordable than the US. There are other countries that are cheaper, such as Nicaragua real estate for example, but Costa Rica can still provide retirees with a lifestyle they could not afford in the US.