Kevin Mulligan - 7/10 - Free From Broke

When are Credit Card Annual Fees Worth Paying?

Paying a fee to a credit company for the privilege of using their credit card seems ludicrous, right?

Why would anyone intentionally pay an annual fee?

With so many free credit card options it just seems insane to pick one with an annual fee.

On the other hand, if you actually take some time to take a closer look at some of the perks you get by paying an annual fee for a specific credit card you might find the perks outweigh the costs.

For the longest time I personally thought this was crazy, but I’m starting to come around. Let’s dig a little deeper.

Paying an Annual Fee for a Credit Card

You have two big steps to take before you jump onboard with an annual fee.

Identify Your Credit Card Usage

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How to File for Unemployment Benefits

Written by Kevin Mulligan 2 Comments

There are millions of people that are currently unemployed and looking for work across the country.

Unfortunately, you just joined their ranks and find yourself on the wrong end of a pink slip. You’ve never been unemployed and have no idea what to do.

How do you file for unemployment benefits? Where do you turn?

You’re frustrated, lost, and perhaps a bit ashamed.

Don’t worry. Every employer that has ever employed you paid into the unemployment insurance fund on your behalf.

It is now your turn to get to use that fund while you get back on your feet to find your next job.

How to File for Unemployment Benefits – 3 Steps

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Are You Ready to Fall Off the Fiscal Cliff? What You Need to Know if the Bush Tax Cuts Expire

Written by Kevin Mulligan 17 Comments

The times they are a changin’ for taxes in the United States if legislation doesn’t change things soon. Most americans are unaware of their taxes will be reshaped by the impending “fiscal cliff.”

The phrase that is being tossed around in the media is “falling off the fiscal cliff” or “taxmageddon”, and both are fairly accurate as to the repercussions.

Understanding exactly what is going to happen if we fall of the fiscal cliff is critical to your personal finances for 2013, so we’re going to break down some of the big points for you.

Repercussions of Falling Off the Fiscal Cliff

This list is pretty terrifying unless you enjoy paying higher taxes.

Expiration of Payroll Tax Cut

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Using a Roth IRA as an Emergency Fund – Pros and Cons

Written by Kevin Mulligan 10 Comments

Roth IRAs are by far my favorite type of investment holding account available.

I love the idea of setting aside $5,000 in after-tax money in order to never pay taxes on the amount ever again.

There are other perks to using a Roth IRA besides never paying income tax on your nest egg. One of the most prominent: you can withdraw your contributions at any time, even before retirement. (This isn’t recommended, of course, but it is possible.) You won’t pay any penalty or taxes for withdrawing your contributions under normal situations. You will pay tax and penalties if you withdraw your investment earnings, so never do this.

This unique withdrawal capability has some people counting on their Roth IRAs as an emergency fund.

But is this a wise choice or a fool’s gamble?

Should I Use My Roth IRA as an Emergency Fund?

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What is Social Security Tax?

Written by Kevin Mulligan 4 Comments

When you get your first paycheck from a new job you might be surprised to see how many different deductions reduced your earnings.

You’ll see deductions for Federal income tax, state income tax if your state charges it, and a whole host of acronyms of other taxes.

One of those taxes is social security tax.

We’ve all heard of it, but what exactly is Social Security tax?

What is Social Security Tax?

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Should I Use the Home Office Tax Deduction for My Home Business?

Written by Kevin Mulligan 7 Comments

Everyone that wants to be audited, please raise your hand.

No one?

Simply mention the phrase “home office tax deduction” and most people instantly think of an audit.

To say there is quite the stigma surrounding taking a home office tax deduction would be an understatement. On one hand, many individuals assume if they claim deductions for using part of their home for business purposes that they will automatically incur the wrath of an IRS audit. On the other hand, being able to write off a bunch of legitimate costs is extremely tempting and could save business owners and their employees a lot of money at tax time.

So should you use the tax deduction from running your business out of your home? What can you claim and what are the risks?