When was the last time you took a look at our Perks Program page? Click here or on the picture below to view it! We have all of the most exciting vendors in Atlanta! Especially with Summer coming up, check it out today to see all of the savings and discounts available to HR Strategies clients.
During tax season, we are especially conscious of our money. HR Strategies wants to help its clients in any way possible, so we thought this article on easy money-saving tips might help:
No one wants to waste money. Therefore, everyone likes to save money, right? Not necessarily. The problem is, saving money is hard work. There are so many small ways to save money that it’s easy to overlook some of them — and even the most vigilant budgeter’s lapse on some of them from time to time. The bright side, of course, is that with so many opportunities for saving money, there are bound to be a few you’ve overlooked.
If you’re trying to trim your monthly budget, this article will help by taking a look at some common ways to save money that are often forgotten. It will help you figure out the best ways to save the most money with each method and find out exactly how much money you can save with each one.
5: Turn Down the Heat
4: Buy Clothing on Sale
3: Buy Non-Perishable Items in Bulk
2: Skip Starbucks [Brew your Own!]
1: Ride a Bike
To read the full article, click here.
Saving for your retirement can make you eligible for a tax credit worth up to $2,000. If you contribute to an employer-sponsored retirement plan, such as a 401(k) or to an IRA, you may be eligible for the Saver’s Credit.
Here are seven points the IRS would like you to know about the Saver’s Credit:
- The Saver’s Credit is formally known as the Retirement Savings Contribution Credit. The credit can be worth up to $2,000 for married couples filing a joint return or $1,000 for single taxpayers.
- Your filing status and the amount of your income affect whether you are eligible for the credit. You may be eligible for the credit on your 2012 tax return if your filing status and income are:
- Single, married filing separately or qualifying widow or widower, with income up to $28,750
- Head of Household with income up to $43,125
- Married Filing Jointly, with income up to $57,500
- You must be at least 18 years of age to be eligible. You also cannot have been a full-time student in 2012 nor claimed as a dependent on someone else’s tax return.
- You must contribute to a qualified retirement plan by the due date of your tax return in order to claim the credit. The due date for most people is April 15.
- The Saver’s Credit reduces the tax you owe.
- Use IRS Form 8880, Credit for Qualified Retirement Savings Contributions, to claim the credit. Be sure to attach the form to your federal tax return. If you use IRS e-file the software will do this for you.
- Depending on your income, you may be eligible for other tax benefits if you contribute to a retirement plan. For example, you may be able to deduct all or part of your contributions to a traditional IRA.
Direct deposit is the fast, easy and safe way to receive your tax refund. Whether you file electronically or on paper, direct deposit gives you access to your refund faster than a paper check.
Here are four reasons more than 80 million taxpayers chose direct deposit in 2012:
- Security. Every year the U.S. Postal Service returns thousands of paper checks to the IRS as undeliverable. Direct deposit eliminates the possibility of a lost, stolen or undeliverable refund check.
- Convenience. With direct deposit, the money goes directly into your bank account. You will not have to make a special trip to the bank to deposit the money yourself.
- Ease. It’s easy to choose direct deposit. When you are preparing your tax return, simply follow the instructions on the tax return or in the tax software. Make sure you enter the correct bank account and bank routing transit numbers.
- Options. You can deposit your refund into more than one account. With the split refund option, taxpayers can divide their refunds among as many as three checking or savings accounts and up to three different U.S. financial institutions. Use IRS Form 8888, Allocation of Refund (Including Savings Bond Purchases), to divide your refund. If you are designating part of your refund to pay your tax preparer, you should not use Form 8888. You should only deposit your refund directly into accounts that are in your own name, your spouse’s name or both if it’s a joint account.
Some banks require both spouses’ names on the account to deposit a tax refund from a joint return. Check with your bank for their direct deposit requirements.
It may be the month that celebrates the “Luck of the Irish”, but we’re not relying on luck to get us through this tax season. Until April 15, Tax Day, we will be continuing to post IRS Tax Tips to make sure you are prepared for this tax season.
Don’t rely on luck; come to the HR Strategies blog for helpful tips on how to keep your “pot of gold” full!
Every New Year millions of Americans resolve to save money. Every April millions of Americans file their taxes and look for ways to keep more money in their pockets. One way to accomplish both these feats is through a 401k plan. As published on 401k.com:
Investing money through your 401(k) plan gives you the benefit of tax-deferred saving. This lets you increase your take home pay and decrease your current taxable income. Remember though, your pre-tax contributions are not tax-free; they’re tax-deferred, which means that you don’t pay income tax on this money until you withdraw it from the plan (which should be at retirement, when you may be in a lower tax bracket). Take a look at a hypothetical chart to see how contributing to the plan compares with saving outside the plan (in an ordinary savings, or other taxable account).
Pre-tax savings in the plan
Saving in a taxable account outside of the plan
|Annual gross salary||
|6 percent of pay before-tax contribution||
|Less a hypothetical 27 percent Federal income tax||
|6 percent regular annual savings in a taxable account outside the plan (from gross salary)||
|Take home pay||
|Annual difference in take home pay||
*This hypothetical example is for illustrative purposes only. Taxes on pretax plan contributions as well as any earnings will be due at the tax rates in effect at the time you withdraw from your plan account.