Get your taxes prepared for FREE January 10, 2012

Free Tax Preparation Near You

It is the beginning of the New Year, and with that comes new resolutions that we hope to accomplish and taxes.  That is right, January is the start of tax preparation season, and that means you get to go talk to your accountant (or be your own) and find out if you owe Uncle Sam some money, or how much money Uncle Sam owes you.  The good news is that the IRS has given you two extra days to procrastinate this year, as your taxes do not have to be filed until the 17^th of April, rather than the traditional 15^th.  But why wait? We have some helpful ideas to get you started down the right path come tax season.

The IRS offers two programs throughout the country to help you in your tax preparation.  The IRS offers both the VITA and TCE programs.  VITA or Volunteer Income Tax Assistance is offered locally in Kansas through your local United Way organizations.  There are VITA sites located all over the state, including in Sedgwick, Butler, Harvey, Kingman, Pratt, Reno, Cowley, Sumner and Saline counties.  Many other counties also have VITA sites.  TCE, or Tax Credits for the Elderly, is offered throughout the state at an AARP site near you.  Both the VITA and TCE programs aim to assistance consumers by providing 100% FREE tax preparation of both your Federal and State tax returns.  These sites will prepare and e-file your Federal and State tax returns and can also help with having your refund, if applicable, direct deposited into your bank account.

To be eligible for free tax preparation through a VITA or TCE site, you simply need to have income below $49,000 a year.  These sites have knowledgeable, trained tax preparers who can assist you in ensuring that you get your return prepared accurately and timely.  Many of the tax sites can also help prepare your taxes if you are self employed.  To find the free tax site nearest you, call the United Way’s help line at 2-1-1 from any phone in the state.  Just ask them for help with your taxes.

Once you have had your tax return prepared and have received your tax refund, it is important to spend that money wisely.  Many people often times have that money spent before they file their tax return.  This is a troublesome scenario and many people are often hurt by it.  Your tax return will not be the same every year.  Tax credits expire, tax laws change.  Dependents get older, expenses change.  It is important to assess your tax situation each year.  After you have your taxes prepared, you should think about some changes for the coming year that could affect next year’s return, and then adjust your situation accordingly.  Some of the most common changes in tax returns:

• Mortgage & Student Loan interest paid typically decrease each year as your balances decline
• Dependent care credits are reduced as children enter school
• Some tax credits for dependents expire if the child turned 17 during the year

Do not be afraid of tax season.  There is help out there.  Even if you know you are not going to get a tax refund or you are going to owe money to Uncle Sam, FILE YOUR TAX RETURN ON TIME.  The IRS penalizes you for not filing your return on time.  This fine is one of the largest fines the IRS imposes, and you will still have to pay interest on any debt you owe.  If you cannot afford what you owe, still file the tax return on time to avoid more penalties and interest.  You can work out a payment plan with the IRS later.  The IRS even has forms on their website at www.irs.gov that you can fill out and submit to set up a payment plan on your own without having to talk to a mean IRS collection agent (they really are not mean).  But file the tax return; it saves you money in the long run.

So, need help with taxes?  Call 2-1-1 to find out about the free tax preparation site nearest you, or call CCCS at 316-265-2000, as CCCS is a VITA site and offers free tax preparation service.  We can even help you with prior year tax returns if necessary.

Make A FIRM Financial Decision this New Year 2012 December 29, 2011

Financial Decisions

As year 2012 rolls in,

Make a Firm Financial Decision to ESTABLISH AN EMERGENCY FUND and SAVINGS ACCOUNT

• This is very essential as no one is immune to emergencies.
• The only way one can avoid debt is if one has a safety net to fall back on in times of need.
• Consider opening a savings account separate from your checking and try to only use that when a pressing need comes up.
• Make a choice to set a certain amount aside each time you are paid. You may even be able to set it up to come out automatically from your paycheck.
• Little amounts add up; $100/month is $1200/year.
• Set saving goals for yourself and strive daily to achieve them.

Make a Firm Financial Decision to REDUCE SPENDING

• First track your expenses to see where your money is going so that you know where you may need to make adjustments.
• Reduce or eliminate extra features on cable TV, phones and internet service.
• Use coupons effectively.
• Take your lunch to work.
• Cut back on dining out.
• Use your local library for books, DVDs and CDs.
• Drop any memberships you do not use fully, for example, movie, gym, and magazine subscriptions or beauty memberships.
• Avoid fees – bank account, overdraft, over limit fess, etc.

Make a Firm Financial Decision to PAY OFF  DEBT

• STOP using credit cards or any type of loans.
• List all of your debt from the lowest to the highest balance.
• Pay the minimum payment on all debts except for the one with the lowest balance.
• Put every other penny you possibly can towards the debt with the lowest balance.
• When that debt is gone, do not alter the monthly amount used to pay all remaining debts, but throw all you can at the debt with the next-lowest balance.
• Use your tax refunds wisely to pay off some debt.
• Try increasing your income by getting a second job or better paying job.

Other resources: Check to see if you have any unclaimed funds in your state. This is for KANSAS.

How to follow through on your GOALS

1. Write down specific resolutions.
2. Set up attainable goals.
3. Create a plan to follow.
4. Be willing to forgive yourself and move on.

We at CCCS wish you luck on following through with your financial resolutions in 2012! Happy New Year

WAIT a minute! November 23, 2011

Holiday shopping wearing you down?

Before you get in over your head with the crazy holiday shopping, low-balance bank account and a feeling of, “what was I thinking?” READ THIS. Do you have a spending plan for the holiday season? Have you laid aside a set amount that you would like to spend? Are all your expenses going on credit cards? Are you buying the things that you need or just randomly acquiring ”good deals” that would end up under your bed or in the garage?

According to MHA ( Mental Health America), the holiday season can be a time full of joy, cheer, parties and family gatherings. But for many people, it is a time of self-evaluation, loneliness, reflection on past failures and anxiety about an uncertain future. Some of the major causes of stress during the holidays are unrealistic expectations, over-commercialization, financial constraints, the demands of shopping, parties, etc.

We want to make sure that you usher in the New Year with the right attitude, sound mind, and clear goals. We always tell our clients to develop a realistic budget; this may sound redundant but it is very good advice. A budget is telling your money where to go instead of wondering where it went – John C Maxwell. We asked our Executive Director, Jeff Witherspoon, how he plans for the holidays and he said he establishes a spending limit for gifts for each person on his list and sticks to it. How easy our lives would be if we could just follow through on our decisions. Some tips we would like to share for the holidays are

• Develop a realistic budget for gifts, increased cost of food, entertainment and travel if applicable
• Spend CASH only. You are more likely to overspend when using credit cards
• Have the ability to say no to family when you can’t afford something. Remember, the holidays are not about giving gifts but spending time with loved ones
• Look around your house for things you can regift, it’s amazing what you will find
• Make things from scratch, for example, picture book, bake/cook, cookies in a jar
• Start your shopping sooner rather than later
• Consider a part time job to generate extra cash during the holidays
• If you are one that likes to donate to charities during this season, and you have no money, think about volunteering your time to these organizations instead.

We at CCCS would like to say Happy Holidays

Spend Wisely and Stay Safe!