Issue link: https://digital.copcomm.com/i/61011
Your pocketbook Can't pay your taxes? try these tips - by Jason Alderman If you're worried you won't be able to pay your income taxes by this year's April 17 filing date, don't panic. I t's very important NOT to ignore the tax-filing deadline. And you certainly don't want to wait for the IRS to reach out to you first. Acting quickly not only gives you more repayment options, it can also significantly lower penalties you might owe the government. By not filing your 2011 federal tax return or asking for an extension by April 17, 2012, the penalty on any taxes you owe increases dramatical- ly – usually an additional 5 percent of taxes owed for each full or par- tial month you're late, plus interest, up to a maximum penalty of 25 per- cent. But file your return/extension on time and the penalty drops ten- fold to 0.5 percent. Eventually, the IRS could even place a tax lien on your assets and future earnings. IRS tax repayment alternatives include: Pay by credit card. You will be charged a small convenience fee that is tax-deductible if you itemize expenses. Just be sure you can pay off your credit card balance within a few months, or the interest accrued might exceed the penalty. Short-term extension. If you can pay the full amount within 120 days, call the IRS at 800-829-1040 and ask whether you qualify for a short- term extension. If granted, you'll still owe interest, but will avoid an application fee. Installment agreement. If you need longer, an installment agree- ment will let you pay your bill in monthly installments for up to five years. If you owe $10,000 or less, you're guaranteed an installment agreement provided you have filed and paid all taxes for the previous five years and haven't had an installment agreement within that time. Member-only discounts app now ready for your Smart Phone • Deals near home, the office, or wherever you travel in the U.S. Enjoy a deal-finding app that delivers big discounts. mobile device and save up to 50% on dining, shopping S Jason Alderman directs Visa's financial education programs. If you owe $25,000 or less and are in good standing, you'll still likely qualify for a streamlined install- ment agreement. There's a $105 fee to enter an installment agreement. It's reduced to $52 if you set up a direct debit installment plan (or $43 for low- income filers). For rules and to apply, see the "Online Payment Agreement Application" at www.irs.govor submit IRS Form 9465. Offer in Compromise. Under certain dire financial-hardship cir- cumstances, the IRS may allow tax- payers with annual incomes of up to $100,000 to negotiate a reduction in the amount they owe through an Offer in Compromise. To qualify, you must be current with all filing and payment require- ments and not in bankruptcy. There is a $150 non-refundable application fee, which may be waived for low- income applicants. You'll also be required to submit an initial pay- ment with your application. Please note: Only a small number of offers in compromise are accepted and you should only pursue one after having exhausted all other payment options. For step-by-step instruc- tions, read the IRS Form 656 Booklet. If you're unable to make pay- ments on your installment agree- ment or offer in compromise, call the IRS immediately for alternative payment options, which could include reducing the monthly pay- ment to reflect your current finan- cial condition. Nothing beats staying current on your taxes, but if you fear you may fall behind, explore these options before the penalties start snow- balling. 20 March/April 2012 DSEA ACTION! Features: • No printing! Just show your mobile coupon and save. • Multiple-use coupons. Save as often as you wish. • GPS search. Find deals near you—wherever you are. • Over 75,000 locations... and more being added daily. and more. You'll find tons of sav- ings in every big city, and in most small towns in America. imply show the coupon from your To start saving, simply download the "ACCESS" app by searching for "My Deals" in the iTunes App Store or the Android Market. Your regis- tration code is 8832- followed by your DSEA ID. You can also click on the following: iTunes: http://itunes.apple.com/us/app/my -deals-mobile/id427118196?my=8 Android Market: https://market.android.com/details ?id=com.access.access Once you've registered the app, you'll need your membership ID number located on your DSEA membership card, you're good to go. Enjoy getting your DSEA deals on the go! Tax reminders: Tuesday, April 17 is deadline for IRS filing • Don't forget to include any "ener- gy-efficiency tax credits" you may be entitled to. For details about this, go to page 20 of the Nov/December issue of ACTION!, available at www.dsea.orgunder "Publica- tions," or at http://digital.cop comm.com/ issue/48993. • And, the popular tax deduction for educator out-of-pocket expenses where eligible continues for 2011. If you worked at least 900 hours dur- ing a school year as a teacher, instructor, counselor, principal or aide, you can deduct up to $250 from your adjusted gross income for qualified, out-of-pocket expenses used for books and classroom sup- plies. You must have saved your receipts to claim this tax deduction. Enter California Casualty's School Lounge Makeover and Distracted Driver Contests viding two opportunities for educa- tors and students to win great prizes: C Win a $7,500 school lounge makeover for educators Four lucky schools will win $7,500 to transform their school lounges from ordinary to positively extraor- dinaire! Encourage your colleagues to enter, too, and increase your school's chances of winning. The next entry due date is April 30, 2012. Get the details and enter online now at: www.schoolloungemake over.com! www.dsea.org alifornia Casualty, provider of the NEA Auto & Home Insurance Program®, is pro- Create Real Impact Distracted Driving Contest for youth ages 15 - 22 The "Create Real Impact" Contest is designed to heighten awareness about the real dangers of reckless and distracted driving and how to prevent it. U.S. residents ages 15 -22 are eligi- ble to submit creative entries to the Create Real Impact contest in four categories: art, writing, music, and video. The deadline for submis- sions is April 27, 2012. For rules, regulations and infor- mation on how to enter, visit www.create realimpact.com.