Someone Stole My Social Security Number To File Taxes. Help!
Q: I filed for my taxes on Turbo Tax I got a message saying that my social security number has been used and one of my dependents. Can I ever find out who did it? What if their using numbers in other places? Will I get my refund? A: If someone has used your Social […]
Why Was I Taxed On An Early IRA Distribution?
Q: My husband and I each took $10,000 early IRA distributions to help pay for a construction loan on a new house. The amount is exempt from the 10% penalty but I do not understand, when it comes to taxes, why it is considered taxable income when I paid income taxes on that money before […]
Should I File Taxes Separately From My Spouse To Protect My Credit Score?
Q: My husband and I have been married for 2 1/2 years and have not mixed any of our finances due to his poor credit history. We have filed taxes separately in the past, but this year we looked at filing jointly and would get much more money back. My question is this…can filing jointly […]
Should I Invest My Money In Order To Save For A Home?
Q: I have $1000 I would like to invest. What type of investment you think I can do that will yield the highest (return). I am saving to buy a house and hope to do so by next year. A: Before you invest $1,000, I’d suggest taking care of five financial basic: 1) Paying off […]
I Forgave A Debt And Issued Form 1099-C. Do I Have To Inform The IRS?
Q: I am the creditor and I canceled the debt (the amount owned by a real estate development company). I have provided a 1099-C to the real estate development company. Please advice what other actions I must take: (a) Do I have to inform IRS that I have forgiven debt as a creditor… if yes […]
How to Raise a Low Credit Score
Q: After paying off all my credit cards, I canceled all of them as well. I currently use only cash even for significant purchases. I do not know my current score but it is my understanding that it is currently very low due to my past credit history. Should I be concerned about my credit […]
How to Claim Injured Spouse Relief from the IRS: Form 8379
Did you file a joint income tax return and expect to get a big check back from Uncle Sam only to find out that the government kept all or part of your refund? If so, the feds probably think you – or your spouse – have a delinquent debt that must be paid before you […]
How Do I Manage Massive Student Loan Debt ($200,000) on a Modest Income?
Q. How do I manage massive student loan debt ($200,000) on a modest income? A. To manage large student loan debt on a modest income, pick the right repayment program – one that is affordable, given your present economic circumstances. If you have federal student loans, there are four different loan repayment plans you can […]
Does Medical Debt Hurt Your Credit Score as Much as Credit Card Debt?
Q. Does medical debt affect you (or your credit score) as much as credit card debt? A. No, medical debt doesn’t affect your credit rating as much as credit card debt. In fact, medical bills do not adversely impact your credit or your credit score at all, unless you have long overdue medical accounts that […]
Should I Apply For A Business Loan If I Already Have Bad Credit And A Low Credit Score
Q: Do you suggest attempting to take out a business loan to finance a business that you have invested in although credit may not be good, personally? A. No, I don’t suggest trying to get a business loan to finance your business operations when you know your personal credit isn’t good. You’ll simply wind up generating an […]
How To Deal With A Student Loan That You Can’t Afford To Pay
Q. How do you suggest dealing with student loans that you cannot yet pay because of lack of job or business profit? A. If you can’t afford to pay your student loans due to a lack of income, get a deferment, forbearance or loan cancellation during periods of economic hardship. Most people think only students […]
What To Do With That 1099-C You Got In The Mail
If you settled a credit card debt last year, by paying less than originally owed, the debt settlement company probably didn’t tell you this, but the IRS will: You likely owe taxes on the amount of debt that was forgiven. Anytime a bank, credit card issuer or financial company writes off $600 or more worth […]
Were You a Victim of Payday Lender Quik Cash?
Today, payday lender Quik Cash was forced to pay $170,000 in restitution by the Arizona Attorney General to “eligible consumers” that were victims of consumer fraud. According to a news release, the attorney general filed a lawsuit against Quik Cash in December 2009 for reportedly obtaining as many defaults as possible against consumers who lived […]
4 Tax Credits That Can Give You a Big Fat Tax Refund Check
]Nobody likes to pay taxes. In fact, most people prefer to get a little something back from the IRS after filing a federal tax return. Even though it’s more prudent, financially speaking, to break even – or have to write the IRS a small check – I recognize that lots of Americans love the idea […]
How to Pay Zero Taxes on Mortgage Debt Forgiveness After Foreclosure or a Short Sale
Did you go through foreclosure, modify your mortgage, or do a short sale last year and sell your home for less than what was owed to your mortgage lender? If so, you probably got a 1099-C, a Cancellation of Debt, from your lender and you now need to know how to account for that transaction […]