Lower Your Taxes for 2009

Author: Rena Crispin

Would you like to keep a little more of your hard-earned cash in your pocket when you file taxes next year? Don’t wait to take action. Use these simple steps in 2009 to save money when you file in 2010:

• Make or increase your 401(k) contributions.

Your 401(k) contributions come off your paycheck before taxes are withheld and reduce your taxable income immediately. Many employers match a certain percentage of your contribution. Take advantage of this opportunity for “free money.” You can make regular contributions or a one-time contribution up to $16,500 (plus an extra $5,500 if you’re 50 or older) in 2009.

In addition to the immediate payoff, if you are within certain income limits when you file 2009 taxes take advantage of the Savers Credit to trim your tax bill up to $1,000 (single filer) or $2,000 (joint filers). The Saver’s Credit is available in addition to any other tax savings that apply.

• Pay college bills.

If you pay at least $4,000 in tuition, fees and course materials in 2009 from a source other than a 529 or Coverdell, you can qualify for the American Opportunity Credit of up to $2,500.

The new credit modifies the existing Hope Credit, making it available to more taxpayers than in 2008-those with higher modified adjusted gross incomes (up to $80,000 single filer and $160,000 joint filers) and those who owe no tax. The credit phases out if your income is above these levels.

Read the whole story…
http://planit.cuna.org/33031/article.php?doc_id=2856

Published November 2, 2009

Resale Shops Offer Extra Income for Students

Author: Anna Archibald
University Daily Kansan, U. Kansas

(UWire)–This year, the National Association of Resale and Thrift Shops expects college students to spend upwards of $618.12 on back-to-school materials, including electronics, clothing and school supplies, but there is one quick and easy way students can make a few extra dollars: resale shops, more commonly known as thrift stores. 

“I used it as spending money when I went to Chicago to visit a friend,” Lily Boyce, Lawrence junior, said. “Resale shops are great because they provide a good selection of alternatively cheap clothes for people because they don’t just buy anything.”

According to NARTS, the second-hand shop industry is growing by five percent every year, even as the economy continues to dwindle.

The resale trend is not only beneficial to students, but also for local businesses.

Read the whole story…
http://moneymix.cuna.org/33031/article.php?doc_id=2800

So what’s 65 cents?

Grab a calculator. Add up what you spend on so-called little things that end up being budget-busters:

• If you spend 65 cents a day—seven days a week—on soda, that adds up to $237 a year.

• If you spend $1.75 a day—every weekday—on coffee, that’s $455 a year.

• If you spend $3.75 a day—every weekday—on fast food, that’s $975 a year.

• If you spend $4 each day on cigarettes, that’s $1,460 a year.

To save money, fi nd a less expensive alternative or simply cut back. Better yet, redirect that money toward a family vacation or some other savings goal.

~ Excerpt from ”Six Tips to Trim Spending and Reduce Financial Stress” by Jan Garkey, WESTconsin’s Home and Family Finance Resource Center, available in the Consumer Education section at westconsincu.org