Eight Tax Tips For Military Personnel
If you are an active military member, there is a specific Act enacted for you - Service members Civil Relief Act (SCRA). This Act offers many benefits to military personnel on duty. SCRA protection starts from the day you receive orders for active duty or a deployment. In addition, IRS also provides some reliefs and credits to military taxpayers.
Here are eight important tax tips for military personnel:
1. Exclusion of state income taxes for non-residential servicemen and women. The state can't impose income taxes on these military personnel if they are working in that state on military duties. Also, the state tax liability for the spouse of a service member can't be increased by including the Service member's income.
2. A service member can delay the payment of his or her income tax if on active duty for up to 180 days after the termination of the duty.
3. Death Gratuity - Full amount of such gratuity payment is non-taxable. Generally an amount of $12,000 is paid as Death Gratuity to the survivor of the service member.
4. Certain travel expenses - You can claim the travel expenses towards your military responsibilities as long as it involves a travel of 100 miles or more from your residence. This deduction can be claimed directly on your form 1040 at line 24. You need not claim it as a miscellaneous deduction on schedule A.
5. Designating a person for your tax matters - You can designate a person to represent you in the matters of your tax return. This representative can answer questions that IRS has about your return when you are on active duty or out of United States.
6. Exclusions in tax - Many types of military pay and benefits are eligible for exclusion from income of military taxpayers. You can deduct interest on mortgage and real estate taxes even though you have used BAH to pay these expenses. The expenses which are paid to you as military benefit are excluded from your taxable income. The combat zone pay is eligible for exclusion unless you are working as an officer. In that case also, limits are provided for exclusion. Legal assistance, dental care, and dependent care assistance are excluded from your W2
7. Earned income credit (EIC) - If you have earned an income of $34,458 (if you have more than one child), or $30,328 (if you have one child) then you can claim the EIC. A very important condition for military personnel is that they can't file Form 2555 - foreign earned income if they want to claim this credit. Also your income from investment has to be less than $2650 for the year if you claim EIC. There is one more relief given to military personnel - the condition of living in United States for 50 per cent of the tax year is waived for them. If you are on an active duty and staying overseas, you are still assumed to have lived in the United States during that period.
8. Child tax credit - If your child is by the end of the year under 17, and is a citizen of United States, and claimed as your dependent, then you can avail child tax credit of $1000 which is very useful to reduce your tax liability. Even if your tax liability is $0, you can get this credit as a refund. You must check your eligibility, as it will help you to generate a bigger refund for you.
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can military members use a form 2555, tax tips for military personnelBusiness Ethics Must Be Presented, Preserved and Promoted
Business ethics are an almost daily topic in the news, in business schools, in the workplace and in our homes. I pay close attention to business ethics and what is written about them in my daily life as a strategic thinking, planning and business coach. I am still astounded at the remarks of major corporations a few years ago when they said they "waived or suspended" the ethics code or requirements. I am still at a total loss at how anyone can "suspend or waive" ethics.
While I may not be able to explain the suspension or waiving of ethics, I do hope to provide some solid advice on what business and other organizations need to do today to present, preserve and promote ethics in their organizations. Here are ten action items I would recommend:
1. Present ethical behavior as a requirement, not an option. Major business corporations are standing trial, literally and figuratively, for very strong violations of ethics. Acting unethically means that eventually you will be caught. Today is a very opportune time to take advantage of the current business environment to present ethical behavior as a requirement, not an option.
2. Present ethics in all daily interactions with internal and external stakeholders. Unfortunately too many people perceive that ethics only need to be presented to "bad" companies that need to reform. Well, my experience indicates just the opposite. Companies with strong track records of ethical, responsible behavior have the most to gain from a well thought out system to assure the cultivating of ethical corporate culture. Every action by every employee in an ethical culture will reinforce and further the company's positive reputation.
3. Present the desired ethical behavior in an ethics code of conduct. Ethical conduct of each employee must become a habit of every minute of every hour of every day. No exceptions, no waivers and no suspensions of the ethics code!
4. Preserve ethics to let everyone know ethics is here to stay. While there may be "newcomers" to embracing ethics in business, ethical and responsible conduct have always been the standard at many companies. Even when ethical conduct may fail to improve the bottom line as strongly as desired, the alternative of operating unethically is not a viable option. This commitment will preserve and extend the reputation that has been earned through consistent ethical conduct over time.
5. Preserve an ethical culture that serves as a foundation. If you are not put to a test, then it is easy to say you act ethically. However, what do you do when you are faced with the tough ethical decisions? A very positive affirmation that your ethics program is a success is when there is an embedded culture where people will make the right choices, even when those choices are difficult, inconvenient, or adverse to the short-term interests of the individual or company.
6. Preserve an ethical culture that perpetuates ethics. Consistent compliance with a strong code of ethical conduct will be a major stimulus to having ethics become self-perpetuating. A reversal of behaviors will also occur in that those who speak out against unethical behavior will be the majority, instead of the majority being those who simply ignore and do nothing when they observe unethical behavior. A true ethical culture will evolve into a self-regulating basis on a peer-to-peer level.
7. Promote ethics and their benefits. Too many companies will always look at the cost of something, without looking at the benefits. The same goes for ethics. Too many companies sadly will only look at embracing and enforcing a code of ethics in terms of what it costs, rather than the benefits it will gain. Ethical behavior and a culture of ethics will result in many benefits, including: improved employee relations, enhanced worker productivity, positive morale and an enhanced company image.
8. Promote ethics from the top. If you read Greek history and mythology, you may have come across a well-known Greek saying that a fish rots from the head. In today's business world, the saying is applicable. The message, spoken and unspoken, from the top is critical to reinforcing positive, responsible, ethical conduct. If top executives and top executive management say one thing but do another, the message of ethical behavior gets very confusing. Top executives need to use their positions in the company to insist on and promote ethical conduct. The top executives must "walk the talk" and hold themselves to the same high standards of ethics they expect of others and demonstrate those high standards in everything they say and do.
9. Promote a company culture where ethics is for everybody. Ethics is not just reserved for your management. It is for everyone, every day. Everyone in your company needs to be trained and persuaded to act ethically. No exceptions!
10. Present, preserve and promote ethics by rewarding ethical behavior. Develop a compensation system that provides a component of benefits and rewards for ethical behavior integrated with performance-based incentives. People who consistently demonstrate they are driven by ethical behavior need to be recognized and celebrated. There must be a clear connection between ethical conduct and potential career advancement. The consequences of a person's unethical behavior need to be discussed immediately and be accompanied by an alteration to their career advancement within the company.
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business ethicsAfter the Event Litigation Insurance Can Make Any Claim Straightforward
After the event litigation insurance policy is meant to protect a solicitor's client after that person or entity becomes aware of the need to litigate to protect their interests. The client can be either the claimant or a defendant in a legal action. This type of insurance is relatively new to many people and has not been particularly popular within the commercial litigation sector. It is all due to its quite high premiums and tough application processes, which can make the product really unattractive to claimants and their representatives. However, due to the increasing demand of this insurance, you can now get more innovative and variety of these products to assist you in difficult times.
Whatever the nature of your business and your instructions, there are many insurance companies who can tailor a fee charging structure according to your specific requirements.
Life Insurance & Health Insurance – Need of the Hour
Life is unpredictable. Unexpected events that strike without warning can disrupt the smooth rhythm of life. You must be prepared at all times. As the primary earning member, you will do anything for the ones you love and ensure that nothing is lacking even if you are taken away from them forever. Do your best today to ensure that your family can always enjoy a comfortable lifestyle.
Life Insurance:-
Thinking about why you need life insurance can be an emotional and stressful task. However, life insurance is one of the most responsible decisions you can make to help ensure that your spouse, children or other loved ones can continue to enjoy the quality of the life they deserve.
Life insurance is nothing but its a way to replace the loss of income that occurs when someone dies. It ensures that your family will receive financial support in your absence. Put simply, life insurance provides your family with a sum of money if something happens to you. It protects your family from financial crises & provides some financial peace of mind.
In addition to serving as a protective cover, life insurance acts as a flexible money-saving scheme, which empowers you to accumulate wealth-to buy a new car, get your children married and even retire comfortably.
With a life insurance policy in place, you can:
Provide security to your family Protect your home mortgage, loans, credit card borrowings etc. Provide finance to your loved ones to achieve their goals in your absence Ensure that your family is able to maintain their lifestyle, no matter what happens Take care of your estate planning needs Look at other retirement saving/investment vehicles
Health Insurance:-
Although health insurance can not prevent a serious injury or illness, it can help you maintain financial stability. A serious injury, disability or critical illness can impact a person's emotional well-being and financial security. And while it can be difficult to think about these things, you will make a smart decision by planning for the unexpected now.
Health insurance policies insure you against several illnesses and guarantee you stay financially secure should you ever require treatment. They safeguard your peace of mind, eliminate all worries about treatment expenses, and allow you to focus your energy on more important things like recovery.
Health insurance is required when an individual is ill or requires medical checkups. It can prevent the patient from being expected to pay out of pocket expenses towards medical bills because they do not have any health insurance. Without health insurance, one may even not be able to afford expensive medical services when needed.
Benefits of having a Health Insurance:-
Helps protect your income - Disability Income Protection Insurance Provides a monthly benefit to help maintain financial stability while you recover from a disability. Long-Term Care Insurance Provides a daily benefit to help you offset the cost of care administered in a long-term care facility or at home. Critical Illness Insurance Provides a lump-sum payment to be used in case of contingency Hospital Cash Plan Provides a daily allowance to help you pay during your hospital stay.
How to Find Low Interest Credit Cards and What it Takes to Qualify
Finding credit cards with low interest rates is an effective, and a surprisingly overlooked, way for consumers to reduce their debt and save money. The good news is that this does not have to be an arduous or time consuming process. With a small amount of preparation, a few key pieces of information, and a little persistence, anyone can learn how to be a confident and effective shopper for low interest cards.
Approximately 55% of all credit cardholders carry a balance on their cards, and for these individuals in particular it's important to not only know how to find low interest cards, but to understand the general credit approval criteria used by card companies.
Often, the difference between a low interest credit card and higher interest rate cards can be 10% or more. A card with a balance of $5000 and an interest rate of 10%, for example, would have a minimum monthly payment of $92 (keeping in mind that minimum payment calculations can vary among companies). However, if this same card had a rate of 20%, the minimum payment shoots up to $129. Even worse, the time frame to pay off the higher interest card (paying the minimum payment) increases by nearly two years, and the total interest costs over the life of the card is roughly $4000 greater. Ensuring you are not overpaying on your credit card interest simply makes good financial sense that can directly impact your bottom line.
Preparing For the Search
Before setting out on your credit card hunt, it makes sense to first do a little prep work to aide in your research. Two points are essential. Firstly - be clear on how good (or bad) your credit is. Secondly - you need to understand the various types of fees and penalties associated with credit cards so that you can accurately compare total costs and features between different card offers.
Know what is on your credit report. With today's laws that govern consumer's availability to their personal credit reports, there is no excuse for not obtaining and reviewing reports periodically. Learn the process to request your credit report.Your credit rating determines if, and how much, leverage you have over the credit card companies. Do you have an excellent credit profile that card companies drool over? Or, conversely, do you have poor credit - and find it difficult to get approved for most types of credit? When we talk about one's credit rating we refer not only to the all important credit score, but also the detailed payment history information contained in your personal credit report. Like any loan product, getting the best rates on credit cards will require an excellent credit history and payment record. The better the card interest rate - the more stringent will be the credit requirements. Being clear on your credit rating let's you know if you should concentrate your search efforts on the very best rates, or perhaps focus on a card offer that is a tier or two down from the lowest rates.
It's important to know and thoroughly understand the cost and fees associated with a typical credit card. Regulation Z of the Truth in Lending Act requires lenders to disclose fees and rates in a uniform manner. Credit card interest cost is expressed in the annual percentage rate (APR). Reg Z is extremely helpful in that it ensures that card companies publish the APR in big, easily recognizable lettering. However, beware that other penalties, fees, or rules may be found only in the fine print. For that reason - make sure to always read and understand the terms of any offer before submitting an application. Other fees to consider are; annual fee, late payment charges, grace period before late payment is charged, over-the-limit fees, credit limit increase fee, cash advance fee, interest rate on cash advances, and any other penalties. Hone in on the fees or penalties that are especially important to you. Do you sometimes need a few extra days to make a payment? If so - the grace period and late charge fees should carry extra weight in your card search criteria.
Also critical is to know when and under what circumstances a company can increase the rate. Credit cards come with either a fixed or variable interest rate. Though cards with fixed rates can go up, companies must provide at least a 15 day notice. Variable-rate cards, on the other hand, change automatically and without notice to the cardholder. Most financial experts recommend choosing a fixed-rate card over the variable rate.
Thankfully, we live in an age where the most efficient and speedy method to find, compare and research credit cards is right at our fingertips- the internet. A good first step is to get an idea of the average card rates in the country, which provides you with a reference point to gauge what rates are below average, above average, or somewhere in the middle. Good credit card rate charts can be found at bankrate.com and indexcreditcards.com. It's not uncommon for rate charts from different sites to show a slight variance in rates. Tabulating the average rates among credit cards from across the entire country is a complex process, with a fair degree of differences arising from data interpretation or timing processes. Use the charts as a guide - and try to utilize more than one.
To shop for, and research, a variety of credit card offers, the recognized leader is bankrate.com. There, you'll find an abundance of information to help you find and evaluate rates and other features. You have the ability to search by card type (such as low Interest cards or rewards cards) or credit type (e.g., excellent, good, average, or bad). Additional quality sites include creditcardguide.com, creditcards.com, cardratings.com, and cardtrak.com. MSN.com (moneycentral.msn.com/banking/services/creditcard.asp) has an excellent credit card analyzer tool where you can easily scan information on many cards, while Interest.com ( credit-cards.interest.com/content/compare/) employs a handy comparison tool that enables you to search by state.
As mentioned before, read the details and fine print of each offer that falls into your desired rate target range. Make sure the published APR is just an introductory offer. You may see a "V" next to the APR - this signifies the rate is variable. Use several sights to compare a wide selection of card products and offers.
What you need to qualify
Credit card lenders each have their own separate set of approval guidelines, which is dependent on their risk appetite and other economic and business factors. Generally speaking, to get the cards with the lowest rates, a credit score of 720 to 750, or even higher for some offers, will be required. Lenders will want to see a clean credit payment history, a higher than average income, and a low debt utilization ratio. Debt utilization, or sometimes called credit utilization, is a financial ratio that measure a person's total credit balances vs. their total credit limits - and is a figure lenders watch closely when extending credit. To visualize how to calculate a debt utilization ratio - let's look at an example of a person whose only debt is 2 credit cards, each with a $5,000 balance. If this person has maxed out both credit cards (i.e., their amount owed equals the credit limit), his or her debt utilization will be 100%. Lenders would frown heavily on this scenario as it may appear that a person may be overextending or mismanaging their debt. A figure of 20% should be the target for any individual looking to obtain a card with a low rate.
Final Thoughts
Not all consumers, of course, have the necessary qualifications to get the absolute cheapest cards - yet this need not be the end goal for everyone. For some individuals, simply improving on the rate you currently have could be a sensible goal. Evaluate your own credit worthiness - and then set realistic goals as to what credit card product you will target. An important point to remember is that you don't want to apply to too many offers at one time. Doing so raises a red flag to lenders that you may be trying to get too much credit in a short period of time - and can temporarily reduce your credit score. The best method is to submit one card application, and wait for a credit decision before applying for another offer if necessary.
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Hikari HONINGPersonal Finance Tips – Prefer Settlement Over Bankruptcy to Over Come All Your Debt Problems
Do you even hate to think about bankruptcy because you find it unethical and immoral? Making use of credit cards when you need the same and simply putting your hands up and opting for bankruptcy at a later date it is so unfair. Is it not possible to bring down your debt without losing your self respect and self esteem? Can you not teach your children that there are ways to solve problems where nobody loses and everybody ends up as the winner?
Finding such a solution as far as credit cards are concerned may seem very difficult. This is because card issuers are completely obsessed with their profits and are not interested in any other factor or aspect whatsoever. That is the reason why they kept on filing interest charges one after the other despite knowing that millions of individuals have lost their jobs. In such a scenario, a solution where you as well as the credit card issuer wins may seem very difficult to achieve.
Well, this is where the stimulus package offered by the Federal government enters the picture. Because of the presence of this money in the market, it is possible to save more than 50% to 60% of the total amount owed. All you have to do is get a waiver. The discount issued will be completely free. There is no need to repay even a single cent of the amount waived.
You just have to repay the balance amount and you will be completely free of debt. As far as the credit card issuers are concerned, they would have received 40% of the amount owed along with additional interest on the same. As on date, there are not many American borrowers who are in a position to guarantee even that repayment. Lenders will end up with single digit repayment if they compel the borrower to go in for bankruptcy.
Hence, you can be rest assured that debt settlement is the smart thing to do. It is seeking relief only to extend that you need and nothing more. The balance amount will be repaid and you will become free of credit card debt. You then have the option of taking care of your debt properly at a later debt.
It is important to take advantage of this solution before the stimulus package is withdrawn. A last thing you want is to end up in a scenario where you missed the bus because you took too much time to take a decision.
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