Monday, February 4, 2008
Taxes
The very mention of paying taxes can bring on confusion and dread, but filing tax returns online can be easier and less stressful.
Doug Borkowski, financial counselor at the ISU Financial Counseling Clinic and lecturer in human development and family studies, said tax returns provide information to the IRS that helps determine how much money will be available to run government operations.
Borkowski asks, why pay someone to do your taxes, when you can do them for free online?
"Taxes aren't this big daunting thing," he said.
There are three different tax forms: The 1040, the 1040A and the 1040EZ. A person's financial status determines which form should be used.
Borkowski said Form 1040 is the "most inclusive for someone and the most complicated of tax returns." Business owners and people with many deductions use this form.
Form 1040A is not as complicated and allows fewer deductions.
Form 1040EZ a basic one-page form, applies to most college students.
"You earn wages, but you aren't worried about most of the tax credits," Borkowski said.
Who has to file tax returns?
"A lot of students wouldn't have to do a tax return [if] their income is low enough," Borkowski said.
Borkowski said dependent college students with income under $5,350 would want to inform their employer that they are exempt from withholding. This means they do not need to file tax returns.
However, dependent college students who make more than $5,350 must have income tax withheld from their pay and should file tax returns. By doing so, it's possible to receive a refund if the tax withheld is less than what you should have paid for the year.
How do I file tax returns?
"It's free to do [online], as long as your income is under $54,000," Borkowski said.
Borkowski said the first time someone files online, he or she has to send in an online filing form, but after that, the process will be "totally paperless."
Borkowski recommends TaxAct.com as a user-friendly site to do tax returns.
Some benefits of filing tax returns online are getting refunds back more quickly and- since online programs take you through each step - an easier process than the paper form.
Borkowski cautions those who intend to file their taxes online to do so from a secure connection rather than an unsecured wireless connection.
Fazli Sabri, graduate student in human development and family studies, who is married with a family, said he will use the money from his tax returns for his family.
"It should be no problem for other people to do," Sabri said.
When should I file my tax returns?
Borkowski reminds students that the deadline to file tax returns is April 15 - but it is possible to file for an extension.
If you are overwhelmed or have questions about tax returns, Borkowski encourages students to schedule an appointment at the Financial Counseling Clinic.
The College of Business also offers guidance with filing returns.
Tax Returns 101 tips from Doug Borkowski
Steps for filing tax returns online
1. Have a copy of your W-2 Form either on paper or online
2. Go to www.irs.gov
3. Click on "Use Free File to Prepare your Taxes" and Start Now
4. Pick a program
5. Read and follow the steps
Financial Counseling Clinic: Call 515-294-8644 to make an appointment
Sunday, February 3, 2008
Regular Savings
KEPALA BATAS 2 Feb. - Simpan RM5 sehari akhirnya dapat kereta Perodua Myvi - demikian tuah Ku Kim Lian, 74, yang sentiasa sabar menabung dalam bank walaupun dalam jumlah sedikit. Kesabaran dan kesetiaannya menyimpan di Bank Pertanian Malaysia (BPM) cawangan Kota Bharu setiap hari sejak 1992 itu melayakkannya menerima kereta sempena kempen Anugerah Patriotik BPM.
Kim Lian, seorang peniaga di Pasar Siti Khadijah, Kota Bharu berkata, dia akan singgah ke bank tersebut ketika hendak membeli nasi untuk makan tengah hari atau sebelum pulang ke rumah selepas selesai berniaga. ‘‘Mak cik jual udang, sotong kat pasar. Paling sikit simpan RM5, paling banyak RM20,” katanya kepada pemberita selepas menerima kereta tersebut pada majlis Perhimpunan Warga Tani di Dataran Penaga di sini hari ini.
Dia yang ditemani oleh anak saudaranya, Ehdee Plu, 48, dibawa khas oleh BPM cawangan Kelantan bagi menerima hadiah tersebut yang disampaikan oleh Menteri Pertanian dan Industri Asas Tani, Tan Sri Muhyiddin Yassin. Kim Lian yang masih bujang memberitahu, dia jarang mengeluarkan wang simpanannya itu kecuali untuk tujuan perubatan.
Ujarnya, dia tidak pernah terfikir akan mendapat kereta tersebut kerana tujuannya menyimpan adalah untuk kegunaan hari tua dan apabila sakit. Kim Lian ketika ditanya apa yang akan dilakukan dengan kereta Perodua Myvi 1.3 Auto tersebut hanya tersenyum dan sempat bergurau, “Balik ni mak cik kena belajar ambil lesen.”
