Minnesota taxpayers will get more federal tax deductions because of new measure

There’s good financial news for Minnesota taxpayers, concerning their federal tax. The Legislature sent Governor Mark Dayton a bill that’s going to allow about 250,000 Minnesota taxpayers to claim brand new federal tax deductions. These tax deductions will be coming out of their state releases

These federal tax deductions were finalized on Monday when the House of Representatives gave the legislation its final approval. The process was a little difficult and the approval of the new measure sat in the House for a little while. This was due to some Republicans that objected to several of the changes that were made by the Senate from an earlier version of the House bill.

There will be plenty of people that will be eligible to benefits from the new bill that has been passed. Some of those that are eligible for the deductions are teachers who will be able to claim education expenses, homeowners that can take itemized deductions for their mortgage insurance premiums, and also college students that use higher education tuition deductions. Parents can also use the higher education tuition deductions.

Governor Mark Dayton had mentioned that he would gladly sign the bill. Minnesota taxpayers will be happy to know about these federal tax deductions, and should look to see if they are eligible to take advantage of them. Be sure to check if you’re one of the 250,000 or so Minnesota taxpayers that are eligible.

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Posted by Taxmaster - May 5, 2013 at 7:54 pm

Categories: Federal Tax, Income Tax, State Tax   Tags: , , , , , ,

Social Security: Why 10 Years Matters

When it comes to your Social Security benefits, chances are that the only number that comes to mind is the amount of money you will be receiving with your monthly benefits package, which is quite understandable. Be this as it may, you also may want to think about another important number:  the number “10,” as in ten years. Believe it or not, one decade plays several big factors in terms of Social Security benefits. Continue reading to discover why this number is so important when it comes to your benefits options.

1. You must have worked a minimum of ten years to receive Social Security benefits. Although a lot of people spend several decades of their lives working a nine to five, many of us do not. Whether you stay at home with the kids, work under the table, simply haven’t had to work, or whatever the situation may be, in order to obtain Social Security benefits based off of your own work history, you must have at least a decade of taxable income under your belt.

2. You must have been married for at least ten years to receive spousal benefits. Your ex may have been the bane of your existence, but they also may be worth something to you where the wallet is concerned. If you were married for at least ten years, then you are entitled to spousal benefits, which is up to fifty percent of your ex’s Social Security benefits. Whether you take advantage of these benefits or not, it will have no effect on your ex-spouse’s benefits. However, you can only receive your own benefits OR spousal benefits, so be sure to choose the option that gives you the highest amount of money.

3. You have to have been in a common law marriage for at least a decade to receive spousal benefits. This is pretty much the same as the aforementioned point in number two, but only applies to those who live in states that recognize “common law marriages” (living with your partner for a specific amount of time with the intent to one day get married). To find out if your state recognizes common law marriage, check with your local government or social security office.

An entire decade may seem like quite a long period of time; however, if you compare ten measly years with the typical life span of most humans, you will realize that ten years is not much more than a brief era of your life. To make the most out of your Social Security benefits, and to set yourself up for a decent financial future when you retire, take the previously mentioned notes into consideration. Toughing it out for ten years may just be worth the higher pay out in the long run.

Jim Blair is a Social Security expert who provides advice to retirees both a consultant and through his popular Social Security Retirement Guide.

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Posted by Taxmaster - May 5, 2013 at 2:46 am

Categories: Tax Law   Tags: , , , ,

Shameful Government Spending Cuts

Save Money Anywhere Else Please Tories

I read with real disgust the news that the Conservatives are considering removing the heating allowance for pensioners that have a bit of cash. I think the number they are talking about is income of 50k per annum.

Come on Tories.

These old folks have done their bit for society and it is about time we did ours for them. If they have an income of 50k plus they have probably been paying into a pension for 50 years, probably have been hit by annuity rates, probably paid millions in taxes over their working life, and are probably still struggling to get a lifestyle they actually deserve.

Retirement is not cheap. More free time means more money spent. Grand kids, helping out children and trying to get away for a break don’t come cheap either. Let’s not punish them for working hard all their lives. Let’s recognise them by keeping their heating allowance in place.

What is the Heating Allowance?

Here is a summary of what the heating allowance is:

The heating allowance is available to anyone who was born on or before 5 July 1951 and is normally resident in the UK during the qualifying week, which for this year was 17-23 September 2012. There are a few exceptions though; you’re not eligible if during the qualifying week you:

  • Were in prison
  • Were in hospital getting free treatment that lasted 52 weeks or more
  • Needed permission to enter the UK and didn’t qualify for assistance from the Department of Work and Pensions
  • Spent the last 12 weeks or more in a care home and claimed Pension Credit, Jobseeker’s Allowance or Employment and Support Allowance

For more information on eligibility see the Winter Fuel Payment website.

If you get the State Pension or another social security benefit (this doesn’t include Housing Benefit, Child Benefit or Council Tax Benefit) your heating allowance should be paid automatically; payments are usually made in November or December and you should get it before Christmas. Otherwise you’ll have to make a claim. You can download a claim form from this link.

Ex-Pats Can Claim Too

If you live outside the UK but somewhere else in the European Economic Area or in Switzerland you may still be able to claim, as long as you can show a genuine link with the UK, such as holding UK citizenship. If you want to claim this you need to use a different form, which can be found here.

The amount you will be paid depends on a number of things, such whether you live alone or with someone else who qualifies for the payment and if you or someone you live with is aged 80 or older. More details are available here.

As well as the heating allowance you might be able to get cold weather payments if the temperature in your area is below 0°C for a week or more. To find out if you’re eligible for this please see this page.

I know we need to save money and reduce the National Debt. But I don’t think this is a good idea. What do you think? Sensible cost saving measure or slap in the face for our most deserving pensioners?

Phil Turner thinks that everyone needs to find out about the winter heating allowance. Information is important because it then allows you to lobby your MP and to talk with authority.

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Posted by Taxmaster - May 3, 2013 at 5:23 pm

Categories: Federal Tax, Income Tax, Tax Law   Tags: , , ,

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