Your Money_ The Missing Manual - J. D. Roth [121]
Tip
Wondering when your refund will arrive? The IRS has a web page that makes it quick and easy to check the status of your refund: http://tinyurl.com/refund-check. You just have to provide your Social Security number, marital status, and exact refund amount.
If you get a big refund every year, consider filling out a new W-4 so that less is withheld from your paychecks. Basically, this spreads your refund out over the whole year (which is a good thing as long as you have the discipline to use this money wisely). But if a large refund makes you happy and helps you to save, then do it. Just be aware that there are better financial options when you're ready for them.
On The Money: Organizing Tax Documents
When preparing your taxes (or having someone else do them for you), it can be tough to gather up all the paperwork you need. Tax-related documents can show up any time of year, not just in the winter, and it's easy to lose important papers. Here's a simple way to keep them all together:
Every January, take a manila folder and label it with the year—"Taxes 2010," for example. Then during the year, put all your tax-related documents in the folder: investment statements, tax forms, mortgage info, receipts for charitable donations, and so on. If you'll need it to do your taxes, put it in the folder. Be sure to keep the folder someplace safe. That way, at the end of the year, it's a snap to sort these papers and submit them to your tax professional.
Where to Get More Tax Info
There's no room in this book to cover important topics like estimated taxes (www.fairmark.com/estimate/) and capital gains. If you need more info, go to your local library and borrow one of those gigantic tax guides like the ones from J.K. Lasser or Ernst & Young; they look like phone books and are packed with info. Or dig around online at tax-related sites like:
The IRS web site (irs.gov) is surprisingly useful. It offers a library of forms and publications, an extensive list of frequently asked questions, and info on how to file for an extension. You may want to start at the Tax Topic Index: www.irs.gov/taxtopics.
BankRate.com publishes an annual tax guide (http://tinyurl.com/BR-taxguide) that includes a handy tax calendar, forms and charts, and tips on a variety of tax topics.
There are all kinds of useful, tax-related spreadsheets tucked on the Web. You can find two of the best at http://tinyurl.com/tax-ss and www.taxvisor.com/taxes.
June Walker (www.junewalkeronline.com) has created a site filled with tax and financial advice for the self-employed.
If you really need help, your best bet is to get advice from a professional tax adviser. Yes, it'll cost money, but you'll usually find it's worth the fee—and then some.
A Brief Overview of Estate Planning
Nobody likes to think about death—especially their own. Most people don't think about creating wills until they hit middle age. But you can't always see death coming and, in addition to the emotional trauma, it can wreak financial havoc on your family.
You can make things a little easier for your family and friends by planning ahead and creating a will. A will is for anyone who wants to distribute their money and possessions according to some plan. (All that you own, including physical property and investments, is known as your estate. An estate plan is a strategy for passing your money and Stuff on to your heirs.)
Wills are extremely important. They give clear, legally-binding instructions about what you want done with your assets. Simply telling your relatives what you want to happen after you die isn't enough.
Note
If you die without a valid will or living trust (lawyers call this dying intestate), your state's laws determine what happens to your property. Generally, your