JoeTaxpayer

We’re going to start this week’s roundup on a bit of a serious note with Economic Collapse 101: What It Will Look Like, and How It May Start. My friend Len Penzo thinks we are in for some tough times ahead, focussing on the national debt that appears to be rising with no end in sight. I can’t say I disagree with Len’s warning, but for all our sake, I hope he’s wrong.

At Green Panda Treehouse, How Do You Deal With Financial Peer Pressure? An excellent question, as pressure comes from all directions, friends, family, neighbours, and nearly everyone we encounter. Here’s some great advice on how to handle it all.

An interesting article, The Challenge of Defining Wealth was posted this week at Five Cent Nickel. Is it income? Retirement savings? Credit? How do you define wealth?

If Len’s ominous warning weren’t enough to ruin your day, Money Reasons tells us Why Unemployment Is Likely To Be Higher Than In The Past 50 years. It’s not a cycle, it’s a shift in the world’s labor force.

One Frugal Girl tells us why she Unsubscribed: So Long Bargain Blogs. I understand where she’s coming from, a bargain is no bargain if the item you buy wasn’t something you’d have bought anyway.
Does a Stock Split Matter? is asked (and answered) at Money Mamba. While a split doesn’t change the actual value of a company, it does make it more accessible for the average investor. Think about it, would you buy one share of a $10,000 stock as quickly as you’d buy 100 shares of a $100 stock?

It seems that horsemeat has made it into the food supply of some restaurants in Europe. US Government officials have assured us that the US meat supply remains unaffected. Strange turn of events.

President Obama recently called for an increase in the minimum wage, from the current $7.25 to $9.00 per hour. I found two charts to be of interest in furthering this discussion. First, the minimum wage as a percent of poverty level income.

This graph helps illustrate how those earning only minimum wage have failed to keep up with inflation and from a high of 90% of poverty level income are now closer to 60%. I’m not suggesting the minimum wage should be a particular fraction of poverty level income, just observing this graph goes in the wrong direction.

I know that there’s a strong case to be made for higher minimum wages resulting in the loss of jobs, although the data supporting this is a bit sketchy. I’d like to offer one more graph to show why I feel this way.

We are talking about just 2% of workers. Had the minimum wage tracked inflation, adjusted annually, businesses would have planned for it and dealt with the cost each year the same as they deal with rising fuel bills or any other component of their costs. With half of these workers being under 24, and not necessarily family breadwinners, we shouldn’t forget the half who are.

I remember a $3.10 minimum wage. It was enough to have pocket money as a teen. And it was awkward working side by side with those who were lifers, people who did this not for beer money, but to pay their bills. Keep in mind, if you look at $3.10 in 1980, it inflation-adjusts to $8.50 in 2012.

Take simple steps to reduce your stress on the big day.

Meeting with professionals or doing taxes yourself can prove stressful, as it’s often required to have numerous documents, legal forms, bank account information, tax IDs, and more, all at your fingertips. Here are some tips from professionals that can help you make this tax season a little less stressful.

1. Get organized

Even though we are well into the new year, it’s never too late (or early) to start organizing and collecting forms and documents you’ll need to do your taxes. If you haven’t received a W2 or W9 from last year’s employers, give them a call or send an email requesting a digital copy and a printed copy mailed to your residence. Having the digital copy stored on your computer in an appropriately labeled folder can help you keep documents organized and easily available should you lose the physical copy. In addition to requesting digital copies of forms scan in or take photos with your cell phone of the various physical tax-related forms you’ll be receiving, you’ll thank yourself later.

2. Ask the right questions

As you request and organize your tax forms, be thinking of questions you have about filing taxes for this year. Have you invested more than usual, taken money out of stocks, bonds, or an IRA? Have you spent more than usual on education, your mortgage, a car, or received a large sum of money from a deceased relative? Write down any questions or note-worthy events that happened during the year, and any numbers related to those things for reference when filing your taxes. If you meet with a tax professional, be sure to raise your questions when you begin, and if you’re filing yourself with software, make sure during the process your questions were addressed (if not, email customer support for clarification).

3. Search for deductions

Before you meet with your tax professional or start filing on your own, start looking up deductions related to the questions you’ve written down. Think of anything you spent money on this year that was outside the norm, and search for tax deductions related to your expenses. You may be eligible for reimbursement for home improvement items like roofing, air conditioner repair, or energy efficiency upgrades. Tax incentives for fuel efficient cars, education, starting a business, or donating to a church or other charity are also commonly overlooked by people filing their taxes.

4. Use legitimate software

If you’re going the do-it-yourself route of filing taxes, make sure you use some legitimate software that’s been well reviewed. Especially during this time of year, internet advertisements explode across the web directing users to use foreign, questionable, or insecure tax filing solutions. Most legitimate companies that offer software for filing from home will offer email, phone, and web support to help ensure you have the help you need to get your questions answered. Make sure you look at the beginning of the web address you’re using for “https://” instead of just “http://”which signifies a secure and encrypted connected with the remote server.

5. Plan to e-file

Filing your federal taxes is free and easy when you use the government’s e-file system. Most software based tax companies offer to file your federal taxes for free, as it’s so easy to do already. The main benefit to e-filing your taxes with the federal government is that your return is almost guaranteed to come weeks if not months earlier than if you opt for the mailing method.

Aimee Watts is a staff writer for Mobile Moo. She has spent ten years telecommuting full-time, and loves spreading tips and advice for fellow work-at-home parents. She loves gadgets, new ideas, and skiing with her two favorite people: her husband and teenage son. They live in Evergreen, Colorado.