Archive for Taxes

That’s a Wrap: Financial Literacy Month 2012

By Kembala Evans on April 30, 2012

April’s almost over. That means tax season’s officially gone. Yes! :D

Financial Literacy Month is also coming to an end. I really enjoyed participating in Money Smart Week 2012. And I hope you had a chance to take advantage of free personal finance events in your area.

Money Smart Week 2012 was really exciting because I had an opportunity to speak with audiences of all backgrounds from military soldiers, Chicago Public Schools students to adults of all ages.

And the best part about everything was that the audiences were engaged. Whether it was a seminar, workshop, or one-on-one-coaching session people were actively involved.

There’s nothing better than hearing people share their own personal stories to help others avoid the same mistakes, asking questions and speaking up about a topic that we are often silent on.

I’d like to send a special THANK YOU to everyone who participated in my sessions at:

  • Bethel New Life
  • Gail Borden Library
  • Elgin Community College
  • Pulaski Reserve Center
  • American Intercontinental University

Wishing you all a lifetime of happiness!

While Financial Literacy Month is ending, the best thing about being a financial coach is that I’m all about it 365/366 days a year. So stay tuned for more financial tips. And feel free to reach out if you need a dynamic personal finance speaker at your next event.

All the best,

Kembala

P.S. If you dreaded this year’s tax season, click here to check out some tips to make next year easier.

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Categories: Money Management, Taxes

Illinois Residents Face New Reality of 67 percent Tax Rate Increase

By Kembala Evans on January 13, 2011

Today Illinois residents are facing the new reality of a major state income tax rate hike. After Illinois lawmakers passed legislation to raise the personal state income tax from 3 percent to 5 percent – making it a whopping 67 percent tax increase.

In addition, business income tax was raised from 4.8 percent to 7 percent – a 46 percent tax increase.

The new income tax rates would be retroactive to January 1st and remain in effect until 2015.  After 2015, the personal income tax rate will decrease to 3.75 percent and business to 5.25 percent.

Oftentimes the news of taxes going up is difficult to hear, especially when our economy is in rebound mode. And other states are facing budget shortfalls and managing to find other ways to close the budget gaps. After all, managing any budget requires tough decision making across the board (e.g. spending, expenses etc.).

Nonetheless, the Illinois budget woes are real and this appears to be the answer to –a historic deficit of at least $12 billion. With schools, social services and other state government funded programs/initiatives being underfunded and unpaid something had to be done. However, the question remains — was this the right answer?

In the words of Illinois Governor – Pat Quinn:

“We had an emergency, a fiscal emergency”

“Our fiscal house was burning.”

Watch CBS Chicago’s video below to see how the Illinois State Income Tax Hike impacts you:

What are your thoughts on the Illinois Income Tax Rate Hike?

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Categories: News, Taxes

Do You Need some Sales Tax Relief?

By Kembala Evans on July 29, 2010

Living in Illinois, the only time I ever heard of sales tax savings was in a furniture store offer. Now times are a changing, because for the first time – the state of Illinois is having a sales tax holiday (August 6th – 15th) on school supplies, clothes and shoes worth $100 or less. This gets even better, because 17 states are offering sales tax relief on clothes, shoes, computers, energy products, school supplies and more.

Mark your calendar for your state’s sales tax holiday
Mississippi kicks off its sales tax holiday tomorrow (July 30th – July 31st) on clothes and shoes worth $100 or less. Read SmartMoney.com’s article “More States Offer Sales Tax Relief” and find out if your state is on the list. If your state is participating, mark your calendar to take advantage of these additional savings.

Shopping Tip: Use coupons and other discount offers to maximize your savings.

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Categories: Save Money, Taxes

Homebuyer Credit Ends April 30, 2010

By Kembala Evans on April 21, 2010

There are only nine days left to take advantage of the homebuyer tax credit  — it ends April 30, 2010. To qualify for this tax credit, the homebuyer must have a binding contract by April 30, 2010 and close on the home by June 30, 2010. 

Read the article on irs.gov, ”Ten Important Facts about the Extended First-Time Homebuyer Credit” for more qualification requirements.

The homebuyer tax credit includes both first-time homebuyers and current homeowners. First-Time homebuyers may receive a tax credit up to $8,000. And existing homeowners may qualify for a tax credit up to $6,500.

If you qualify to receive the tax credit you may use it on your 2009 or 2010 tax return.

Click here to learn more about the homebuyer tax credit from the IRS. If you are a member of the military, be sure to review the “For Members of the Military” section to find out whether you qualify for an extension.

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Categories: Taxes

Last Minute Tax Tips – Only 3 Days Left

By Kembala Evans on April 12, 2010

There are only 3 more days until Tax Day. The official deadline to file your 2009 return is Thursday, April 15th. Have you filed your taxes?

2009 Tax Benefit Highlights
According to the Internal Revenue Service (IRS), the average income tax return is up about 10%. The Recovery Act of 2009 provided tax benefits. Some of these tax benefits included:

  • Homebuyer Tax Credit up to $8,000
  • Higher Education Savings
  • New Vehicle Tax Deductions (purchased from February 17, 2009 – December 31, 2009)
  • Tax Break on Unemployment Benefits up to $2,400

For more information on the tax saving benefits that you may qualify for under the Recovery Act of 2009, you may use the Recovery Act Tax Savings Tool and consult your tax preparer.

Are you able to file your taxes on time?
If you need more time to file, then file Form 4868 by April 15th for an extension. This will give you a six months extension through October 15th to file your taxes. Filing the extension helps you to avoid the failure-to-file penalty.

If you expect to pay taxes and choose to file an extension, please note that filing an extension does not prevent you from incurring late payment penalties/fees – which could really add up. Estimating your taxes beforehand and including payment with the extension to file request will save you money. If you cannot afford to pay the full amount, then contact the IRS to discuss the installment payment plan option.  

Watch the IRS video below to learn more about filing an extension. Click Here if you cannot see the video.

Please share any thoughts you have using comments.

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Categories: Taxes
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