IRS Offers Advice for Newlyweds

It may not be high on the wedding planning to-do list, but there are a few, simple steps that can help keep tax issues from interrupting newly-wedded bliss. Here are some practical things to attend to when the honeymoon's over:

¨ Report any name change to the Social Security Administration, so your name and SSN will match when you file your next tax return.

¨ Report any address change to the U.S. Postal Service. You may also notify the IRS directly by filing IRS Form 8822, Change of Address.

¨ Report any name and address changes to your employer to ensure receipt of your paychecks and Form W-2 during tax season.

¨ Consider whether you'll file joint or separate tax returns.

¨ Check your withholding status using the automated “IRS Withholding Calculator” available on the “Individuals” page at the IRS.gov Web site.

¨ If you're buying a home, find out which expenses may be deductible and which are not at IRS.gov.

House Democrats Oppose Raising Taxes on Local Government

COLUMBIA – House Democrats joined with the South Carolina Association of Counties on Wednesday to oppose the crippling 42% budget cut to local governments proposed and passed by Republicans in the Ways & Means committee last week. These measures would essentially force local and county governments to either cut basic services for their communities who are already dealing with the massive drawbacks in last year’s budget, or raise taxes.

“This proposal is unacceptable and fiscally irresponsible”, said Rep. Cathy Harvin (D-Clarendon). “We cannot expect local governments to fix the problems that were created right here in Columbia”. Harvin added, “House Democrats will not vote for this budget if these cuts do not disappear.

The proposed cuts force local governments to carry the financial burden of the budget crisis without giving them an alternative solution to create revenue. With Act 388 prohibiting local governments from raising property taxes, the only remaining options lie in the dramatic downscaling of basic services, pay cuts, and layoffs.

Several Democratic members of the House and Senate voiced their opposition to the massive cuts at the press conference, stating that the drastic impact it would have on employees, county officials, and basic services were too catastrophic to ignore.

“We will not stand idly by while the Republicans attempt to bamboozle and hoodwink county and local governments”, said Rep. Wendell Gilliard, a former City Councilman in Charleston. “I’ve seen it done before, and I will not let it happen again."

AARP Tax-Aide to Provide Free Tax Preparation

AARP Tax-Aide, the nation’s largest free, volunteer-run tax counseling and preparation service has opened its South Carolina sites. Tax-Aide helps low- and middle-income taxpayers with special attention to those ages 60 and older taxpayers with their federal and state returns between Feb 1 and April 15 each year.

AARP Tax-Aide offers free tax preparation and filling for individuals with emphasis on serving older residents. Across South Carolina there are more than 60 AARP Tax- Aide locations. A majority of sites offer electronic filling allowing Tax-Aide clients who are receiving refunds to have a quick and safe transaction.

“AARP Tax-Aide volunteers have been trained and are up-to-date with the latest IRS guidelines which enable them to provide exceptional service to their clients,” said Jane Wiley, AARP South Carolina State Director. Last year, AARP Tax-Aide volunteers prepared more than 20,000 returns in South Carolina.

To find an AARP Tax-Aide site, call 1-888-227-7669 or on the internet. Some sites do require that you make an appointment and offer electronic filling. Before going to an AARP Tax-Aide site, make sure that you have all of your personal information including W-2 forms.

AARP Tax-Aide is administered through the AARP Foundation in cooperation with the IRS. The AARP Foundation is AARP's affiliated charity. Foundation programs provide security, protection and empowerment for low-income older persons in need.

Why E-File

First-Time Homebuyer Credit

Here is a tip from the IRS…

Tax Time

IRS E-file and free file are now available. Most taxpayers should have W-2s within the next few weeks (employers are required to make forms W-2 available by Jan. 31). If people haven’t already done so, it may be a good time to figure out how they plan to file.

More information here. Information and video will be added continually through April 15.

Tax Proposals Effect

From the Washington Post, here is a chart of how John McCain and Barack Obama's tax policies would change what you pay Uncle Sam.

If you make more than $160,973 per year, McCain's tax plan is better for you.
If you are part of the other 70% of Americans who make less than $160,000 per year, Obama's tax plan would benefit you more.

We Should be Outraged

The AP reports that the Government Accountability Office will release figures that show most (two-thirds) of US corporations don't pay taxes!

Big corporations need to pay their fair share.

Corporations have golden parachutes, record-breaking profits, huge CEO paychecks, and more, but they use the boogie man of "high taxes" to have layoffs, cut hours or benefits and to bully Congress into creating tax loopholes. Corporations are using their media oligopoly to control what Americans hear and to bombard us with the notion that big, bad Congress is taxing them too much.

But clearly, that isn't the case.

If the CEO makes more than 100 times the average worker, something in the system is broken. The free market isn't fixing it. Congress isn't fixing it.

Greed has taken over the American landscape. As foreclosures continue and as everyone's debt burden crushes them a little more each day, what can teh average person do?

I'm working towards getting out of debt and reducing my consumption. What are you doing? --LCR