Discover How to Keep More of What You Make

The tax law contains many incentives to encourage saving and paying for attending school. If you can take advantage of them, you are in effect receiving a government subsidy that lowers the cost of education. These include:

• Tax-free treatment of certain scholarships and grants and interest on U.S. savings bonds redeemed for education purposes
• Tax deferral of earnings on contributions to qualified tuition (Section 529) plans and tax-free treatment for disbursements to cover qualified education expenses
• American Opportunity Credit (formerly the Hope Credit) and Lifetime Learning tax credits to pay college costs
• Tax-sheltered savings in Coverdell education savings accounts used to pay any level of education
• Deduction for tuition and fees
• Deduction for interest on student loans
• Deduction for work-related education expenses
  

Each break may set limits on who qualifies, based on marital status and adjusted gross income in the current year. Several of the breaks must be coordinated so you don't gain multiple write-offs with respect to the same education expenses.

Visit the 'Resource Center' online at Hardge Connections, LLC where you'll find everything you've always wanted to know about becoming financially fit, starting or growing a business, essential tax info and much more. Hardge Connections - - we're not just Tax Preparers - - we're Tax Coaches and will help you keep more of what you make!

Many workers will be seeing extra money in their paychecks as a result of new income tax withholding tables being released by the IRS in response to the new Making Work Pay tax credit. The credit is part of the massive American Recovery and Reinvestment Act and provides a credit of up to $400 per worker against their 2009 and 2010 taxes. To get this credit money in the hands of taxpayers now rather than later, legislators instructed the IRS to revise the withholding rates so workers can see a boost in their take-home pay now. The IRS has already released the new withholding rates, and asked employers to implement them no later than April 1, 2009. Workers do not need to fill out a new W-4 form to get the credit. In his weekly address, President Obama said that "a typical family will begin taking home at least $65 more every month," as a result of the new tax credit being factored into the new withholding tables. For more info please visit my website www.hardgeconnections.com.

What if I told you that there was a way for you to save money on your utilities, mortgage, rent, real estate taxes, homeowners insurance, home repairs, internet expenses, cell phone expenses, your travel, dining out and so much more. What if I further told you that not only could you reduce these costs, but there is also the potential to earn money by reducing these expenses. Well it is true. By having a home based business, you will increase your after tax income, increase your take home income and keep more of your hard earned dollars in your pocket. A home based business could double any refunds you're entitled to and if you normally owe, having a home based business can definitely reduce what you will owe and may even land you a refund. Business ownership is one of the biggest tax strategies used by the wealthy to minimize their tax burdens. Why not use this tax strategy to work for you. Qualifying is easy. You can work your business 3 to 4 hours a week, prove that you have an intent to make a profit (even if you don't actually make a profit) and keep good business records.

One of the great benefits of a home based business is that you don't have to create new expenses to get business deductions. You have to pay your monthly rent or mortgage anyway - - why not write off a % of what you're already paying. The same goes for many of your other ordinary expenses.

By becoming better educated about taxes, home based business owners will legally reduce their burden of income tax and keep more of their hard earned money. Not enough of us realize its not what you make, its what you KEEP that counts. if you're an employee, have you ever taken a look at how much federal income taxes are withheld from your paychecks? Or better yet, looking at that final figure in Box 2 of your W-2? How much of that money would you like to take back? Starting a home-based business provides tax advantages that a second job will not. Many people when faced with growing debt and income shortage are trying to deal with this by getting a second job, only to pay more taxes and lose more time for themselves or with their family.

Have you heard that there are two sets of Tax Laws in the U.S.? It's true. One for the informed and the other is for the uninformed. One is for employees. The other is for corporations, small businesses and home-based business owners who conduct their business either part or full-time. The tax system for employees is simple - - individuals who work and earn a paycheck 1) earns 2) taxes are withheld from their paycheck and 3) they live on what is left. You get to spend your money on what's left after the taxes have been subtracted. Compared to a home-based business owner who 1) earns 2) spends and deducts their expenses legally as business expenses and 3) taxed on any money leftover. Everybody has access to the same info. Some will read this and do nothing. Others can contact me about a home-based business they can start today and take control of their finances.

One of the benefits enjoyed by many home-based businesses are the potential tax deductions you can claim for your home office. Certain tests need to be met and there are several things to be considered before you claim these deductions.

Two of the main qualifications are:

1. You must use an exclusive area in your home regularly and exclusively for business purposes.
2. The exclusive area used for business must be your principal place of business or the location where you meet with your clients during the normal course of conducting business. You may also be able to claim deductions if you use an area of your home for storage purposes or housing inventory and/or product samples.

If you meet the IRS' requirements for claiming the Home Office deduction on your tax return, you may be able to deduct a percentage of:

• Property Taxes paid on your home
• Mortgage Interest
• Rent Payments if you are not a home owner
• Utilities
• Homeowners or Renter's Insurance
• Depreciation on your home (if you own it)
• Painting, repairs and more.

For more info, check out:
IRS Tax Topic 509 - Business Use of Your Home
Can You Take a Home Office Deduction
Publication 587 - Business Use of Your Home