Refundable and Non-Refundable Tax Credit in Charts
One thing I’d like to learn to do a better job of this year is to communicate more effectively with visuals. A good picture is worth 1,000 words. In some of my old posts, I wrote 1,000 words but people still keep asking the very question I attempted to address. Clearly I wasn’t effective in getting the point across with 1,000 words.
The post Refundable Tax Credit and Non-Refundable Tax Credit is one of those posts. Let me try again with some charts.
PSA: Beware of Job Scams
This is a public service announcement from the FTC.
"It’s hard to believe someone would steal money from a person looking for a job. But unfortunately, no matter how bad the situation, scammers see opportunity. Many people looking for work have been ripped off by scam artists who promise a job, access to special job listings, interviews, or a way to make a big income working from home – that is, if they just pay a fee or turn over their credit or debit card information. In the end, they’re left with no job…and some are robbed of hundreds of dollars."
Low-Minimum Index Funds and Commission-Free ETFs for Small Investors
The deal for small investors is getting better. If someone wants to invest in index funds and ETFs with very low cost, Vanguard is no longer the only choice. Competition is really good for customers.
Schwab has 5 index funds that require only $100 minimum initial investment. The lineup is not as extensive as Vanguard’s, but it’s adequate for a small investor. Although Schwab doesn’t have a bond index fund, customers can buy Treasury bonds at auction or buy new-issue CDs, all for free.
Schwab customers can also buy 8 Schwab ETFs without commission. Because these ETFs are new, my first choice would be the index funds unless the asset classes can’t be covered by the index funds. Here’s an example of a simple portfolio using Schwab index funds and ETFs: » Read more …
New Tax Forms and Schedules for 2009 Tax Year
Form 1040 for 2009 tax year has two new schedules.
Schedule L is used for claiming (a) the additional $500 or $1,000 tax deduction for property tax paid, (b) the sales tax paid on a new car purchased between Feb. 17, 2009 and December 31, 2009, and (c) a net disaster loss (together with Form 4684).
Schedule M is used for claiming the Making Work Pay tax credit. Making Work Pay tax credit is the $400/$800 tax credit added in the economic stimulus law.
While we are at it, here’s a list of the tax forms you will need for the various new tax incentives for 2009 tax year. » Read more …
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