Test Your Tax Smarts

Quiz 

"You have to admire the Internal Revenue Service. Any organization that makes that much money with out advertising deserves respect" - Anonymous

Tax savings is something everyone wants to accomplish, but many do not know what qualifies as a tax deduction or a charitable deduction. Charitable giving can provide additional tax savings for those who will be itemizing their charitable deductions. The following tax facts regarding charitable tax deductions should be useful in determining maximum tax savings.

An important part of managing money and personal finances is having an organization system in place for your financial documents and financial records, such as bank records, paycheck stubs, W-2 forms, credit card receipts, and brokerage statements. A question that I get asked often is how long should I keep these financial records? Different people will give you different answers on how long you should keep your financial records. I have taxes dated back to 1986. That's a little bit extreme. There is generally no absolute need to keep financial documentation that long.

Taxes and potential tax credits may not be at the forefront of everyone's minds. Many people do not know if they qualify for the Earned Income Credit on their taxes, and many are surprised when find that they do qualify for the Earned Income Credit. The U.S. Government reported that 25% of households eligible for the Earned Income Credit (EIC) didn't take it on their tax filings last year. The credit, worth up to $4,716, could have given families even bigger