For many, income reporting at tax time is fairly straightforward.
You get a W-2, there’s your income. The IRS gets a copy of the W-2, your state gets a copy, and you keep a copy for yourself. Your income is reported on this form, and you don’t have to worry a great deal about other income reporting.
However, in a world that increasingly provides opportunities to earn money from side hustles and investments, reporting income has become a little more complex.
It can be tempting to avoid reporting income to the IRS, but it’s important to remember that failure to report your income is illegal, and can result in fines and penalties and even criminal charges.
As the IRS works to recapture some of the revenue it feels it has been losing lately, you should understand that more people are reporting your income to the IRS than before. So you need to be on your toes. [read more about Tax Forms that Report Income...]
Americans are in love with credit cards.
Many of us have replaced the cash in our wallets with our cards, charging everything from a cup of coffee to large purchases like automobiles.
Although credit cards are convenient, they aren’t right for all purchases even if you can get rewards points or cash back.
In what cases are credit cards a bad idea? Here are some places NOT to use your credit card: [read more about Using Your Credit Card...]
Because home prices and mortgage interest rates currently are so low, if you are in a stable financial position, now might be a good time to enter the home buyers’ market or sell your current house and buy a bigger one.
Remember all of the McMansions people built and bought before the housing bubble burst? Perhaps you are tempted to get your own larger, dream home.
The question is, should you?
If you have weathered the current recession and have the funds, those beautiful, large houses that were built just fifteen to twenty years ago may be tempting. Even if the price on a larger house is one you can afford, think carefully before upsizing. With an upsize comes many other upsized costs.
Consider the following if you want to buy a bigger house:
[read more about Buying a Bigger House...]
The DOW Jones Index is just a few thousand trades from the 13,000 mark.
As of market close on Friday the DOW sat at 12,949.87. That seems almost impossible to believe considering the financial crisis and Great Recession of just a few years ago. The highest the market has ever closed was 14,164.53 back in October 2007. The S&P 500 is currently trading at a P/E Ratio of 22.74 and the average over the last 140 years or so is around a P/E of 16.
Is the economy finally gaining so momentum and getting on stable feet? Or is this just another run up before another big crash?
As Warren Buffett is often quoted: “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”
The ultimate question is: are a majority of people out there currently fearful or greedy?
While you’re trying to figure out how everyone else feels about the market so you can know how to be opposite of that, here are some solid reads from this week:
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This story didn’t make front page headlines in the financial media but behind the scenes, a battle took place with Capital One emerging as the winner.
Capital One, well known for their “what’s in your wallet” commercials agreed to purchase ING Direct USA for $9 billion paving the way for Capital One to become the 5th largest bank in the United States based on total deposits.
This acquisition faced tougher than expected scrutiny by Federal Regulators although they recently approved the deal.
By banking standards, this was not a large deal so why did it face such tough headwinds? [read more about Cap One and ING...]
