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2020 – Your Chance To Become Debt-Free!

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As a new year begins, it’s time to start making resolutions and promises for the months that lie ahead. More than 60% of people make resolutions every New Year, however, only around 8% adhere to them. Some of the most common resolutions include losing weight, getting fit or quitting smoking. Yet, another surprisingly common resolution is to save money and to pay off debts. In 2020, you can achieve this goal by becoming more aware of your income, your spending and how you can find relief from your outstanding debts. 

More people come to see a bankruptcy attorney in Orlando FL in January than at any other time of the year. It’s easy to see why. The holiday season involves a lot of expenditure with visits to relatives and friends, expensive gifts to buy and lavish parties to host. 61% of people with existing credit card debt extend themselves even further over the holiday season and 44% of American shoppers end up with over $1,000 of debt purely from their festive spending. It’s clear, then, that finding ways to manage finances more effectively is essential to avoid long-term consequences, so here are some expert tips to help you to take greater control of your money this year. 

Check Your Finances Every Day

An effective and easy financial resolution for 2020 is to commit to carrying out a daily 5-minute money check-in. By casting your eye over your finances each day you’ll become more aware of how much you’re spending and what you’re spending your money on. It will also allow you to see where savings on small expenditures can be made so that you can put those amounts towards outstanding debts.

Commit To Having No-Spend Days

Commit to having at least one day each month when you spend no money at all. On that day, you should spend no cash and pay for nothing on a credit or debit card. This will help you to save hundreds of dollars over the course of the year.

Do Some Research

Unfortunately, two-thirds of people in the USA are unable to pass even basic financial literacy tests. Clearly, this does not bode well for good financial management. Doing some research into savings, investments, finances and money management is a good way to improve your financial literacy. Read a book every month on these subjects or subscribe to a financial periodical. You could even take the time to simply read financial news online a couple of times a week.

Make Payments To Yourself

In 2020, you can boost your financial well-being by making payments to yourself as well as your creditors. Setting up a savings plan that automatically takes money from your account when your paycheck comes in is a great way to save for the long-term and will help you to pay off those debts. The best thing is that if you choose an automatic payment plan you won’t even miss those extra funds!

Managing Your Money

It isn’t always easy to save money, and for some people, it may seem impossible to become debt-free. If these measures aren’t sufficient, you should seek advice from an experienced bankruptcy attorney who can help you to explore your options. 

 

Can You Still Pay Using a Ripped Dollar Bill?

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ripped dollar bill

Have you ever opened up your wallet to find your cash has ripped from over-folding? With my compact wallet, this is a constant struggle. You could also have run into the issue of a ripped corner or two, or maybe an entire section has torn off due to a rogue child getting into your purse. This always leaves one wondering if they can even use this torn up mess. Well, I’ve got some good news for you: The answer is yes. There are a few stipulations, but in a general sense, you can absolutely pay using a ripped dollar bill.

Using Your Torn Bill

In order to use damaged paper currency, at least 3/4 of the bill needs to be in tact. In addition, the entire serial number must be visible on at least one side. If you do have the other section of a bill that was ripped in half (or close), get some scotch tape and adhere them together. This will help whomever is receiving the money confirm that both sides have the same serial number. You may get some extra attention for just going ahead and using your messed up cash, but at the end of the day money is money. It would be foolish to waste it just because some cashier may find it to be a little extra trouble.

Exchanging at a Bank

Another option, for those who want to avoid any hassle, is to bring the bill to a bank to exchange it for an in-tact one. In order to do this, you must have at least 75% of the bill in one piece, and a visible serial number. Again, the tape trick will also make it easier for you to pull this off if you don’t quite have the whole 3/4 of the paper. This is a good way to make sure you don’t hold up any lines at the gas station trying to offload your torn bills.

Making a Mutilated Currency Claim

For bills that are a little too far gone, you can make a Mutilated Currency Claim. For these, at least 50% of the bill must be recognizable as US currency. Other stipulations are written on the website, and are subject to change. This is the long route, but if it is a larger bill that you’re after, it may be worth it.

US Expat taxes – Who, What, When, and How

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Did you think the IRS was going to let you escape the joy of filing your annual Form 1040 just like that?

Sorry, it doesn’t work like that.

Who Has to File an Annual US Tax Return?

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Pretty much every American ex-pat must file an annual Form 1040, exactly the same as you used to at home. The IRS is remorseless in pursuing non-filers.

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You might think that paying tax in the UK would be enough, and you probably won’t have to pay any American federal taxes. However, the IRS insists that you send them a tax return if your pre-tax income is higher than the appropriate line in the table above.

What Do You Have to Tell the IRS?

Your Form 1040 is only the beginning: You also have to send them details of all your non-US bank accounts.

The Bank Secrecy Act (BSA) gives the Department of Treasury the authority to collect information from United States persons, including ex-pats, who have financial interests in or signature authority over financial accounts maintained with financial institutions located outside of the United States.

The BSA requires that a FinCEN Report 114, Report of Foreign Bank and Financial Accounts (FBAR), be filed if the maximum values of the foreign financial accounts exceed $10,000 in the aggregate at any time during the calendar year

Source: Joshua Ashman (CPA and CEO of Expat Tax Professionals)

You must also fill in and send Form 8938 Statement of Foreign Financial Assets (FATCA reporting) as an attachment to your Form 1040.

Joshua Ashman (CPA) also tells us that there are many other forms you need to send if you have investments or other financial activities outside the US:

Form 5471: must be filed by certain shareholders of foreign corporations

Form 8621: must be filed by certain shareholders of passive foreign investment companies (such as foreign mutual funds)

Form 3520: must be filed to report transactions with foreign trusts (including foreign pension plans treated as foreign grantor trusts) and receipt of certain foreign gifts

Form 8865: must be filed for each controlled foreign partnership in which the taxpayer is a 10% or more partner

Not only, but also . . .

Some US states are reluctant to change your status as a taxpayer, so you must also file state-level tax returns until you can convince them that you have moved away and cut all ties with the state. Most notable in this regard are; California, New Mexico, South Carolina, and Virginia.

When are the Deadlines?

Your deadline at home was 15th April following the end of the calendar year. Your deadline as an ex-pat is the same, 15th April. Any tax that is due and that is unpaid at that date is subject to interest. 

As a foreign resident US citizen, you get an automatic file-forming extension to 15th June, and you can file a request for a further automatically-granted extension to 15th October.

Penalties for late or non-filing are pretty hefty, so it is worth your while to get your paperwork in on-time.

What if You Have Missed a Deadline?

It will always cost less to file late than not at all, so get it done sooner rather than later.

If you have just realised that you should have filed last year and the years before that. Don’t panic. 

The penalties for non-filing of foreign bank information are especially horrendous at $10,000 per account per year, but the IRS will forego any penalties if you apply for forgiveness under their Streamlined Procedures. You still have to send them three years’ tax returns and six years’ FBARs, but you pay no late filing penalties, and you don’t have to send  1040s and FBARs going back to the year dot.

Joshua Ashman (CPA) tells us:

In recent years, the IRS has made it clear to taxpayers that it is more interested in disclosure than in punishing late filers or non-filers. Back in 2014, the IRS expanded the Streamlined Procedures, allowing taxpayers to participate if they can explain in a written statement how their delinquency was not intentional.

The Quick-Read Version

The IRS has long arms and will come after you if you omit to file. It might not be this year or next year, but they will come.

As an American, you must file annual tax returns with the IRS and some states’ tax authorities, even if you have lived abroad your entire life, and even if all your UK income is taxed at source by HMRC.

You have until 15th June 2020 to file your 2019 Form 1040 and associated declarations. Penalties for non-filing should give you an incentive to prioritise the task over the coming months. Good luck.

New Year’s Deals and Freebies

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new year's deals

Ring in 2020 financially healthy with these New Year’s deals and freebies.

Just when you thought the holidays could not get any more expensive, New Year’s comes around. Many individuals will plan parties, and whether lavish or not, they can still be costly. From food to drinks or even just going out for your New Year’s Eve plans, the holiday costs can really add up. The good news is you can still start 2020 off in a positive way without overspending.

Save money by taking advantage of these New Year’s deals and freebies:

New Year’s Freebies

  • Free transportation. Many areas, like London, will be making it possible to have free transportation from late night December 31, 2019 through the afternoon on New Year’s Day. Check your own local transportation services to see what may be offered for free.
  • Free yoga classes. Free yoga classes can be found practically every where for the New Year. From New Year’s Eve events or New Year’s Day class, you can celebrate a new 365 days healthy and stress-free.
  • Greeting cards and scrapbooking tools. Are you resolving to be more creative? Want to send friends and family a goodbye to 2019? There are plenty of New Year’s freebies online.
  • The United States Botanic Garden (USBG). Visit the holiday exhibit at the USBG in Washington D.C. through the New Year celebration at no charge. Other activities, such as the train exhibit and live seasonal music, can also be enjoyed.
  • Coffee. Enjoy free coffee from Sheetz and Cumberland Farms during the New Year celebrations.
  • Free Uber rides in select towns. Started a few years back in Michigan, law firms in certain towns are paying for Uber/Lyft rides Tuesday night. Look yours up to see if your town qualifies.
  • Free New Year’s games. Hosting your own party? Free entertainment is always a plus to save money. Try these at yours.

New Year’s Deals

  • Discounted Uber rides. Be safe this weekend with discounted uberPOOL rides with Uber’s New Year’s promotion. Simply check out this link and see what you can snag.
  • Amazon deals. Amazon’s holiday deals continue with its “New Year, New You” sales on a variety of merchandise.
  • Hotel discounts. Last minute travel plans? Save $50 when you spend more than $300 in select hotel bookings through New Year’s Eve when you use the code HOLIDAY19 at checkout. You can also save 10% on select hotels with the code OFRSDEC19 until January 1.
  • AirBnB promotion for new subscribers. Get a coupon code for up to $35 off from RetailMeNot for your first trip.
  • Best Buy sales. Best Buy has some great New Year’s deals you won’t want to miss. From TVs to phones, Best Buy is one of the stores to check out this weekend for technology sales.
  • Clothing discounts. Under Armor, Charlotte Russe, Maurices and more are all having great deals to ring in 2019. Check out their social media sites, subscribe to their emails lists or look at RetailMeNot.com for coupons.

These are just a few of the many deals happening to celebrate another year. With a little digging and patience, you can snag some awesome discounts and start the New Year with savings.

Do you have anything to add to the list?

Five Simple Steps to Start Your Own Painting Business

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Are you ready to start your painting business? Whether you already planned your goal to enter the market or maybe you are thinking to start planning about it. There are some important steps that you will have to take if you want to succeed in painting business. In this article I am going to explain you five very simple and easy to start your own starting your painting business. Such as register your business, purchase insurance and get licenses, get essential tools for painting, create a simple website and start bidding to get paint job. And you can also visit Experts painter site maler [Read more…] about Five Simple Steps to Start Your Own Painting Business

Starting a nonprofit in Texas: Your complete guide

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Federal tax policy changes implemented in 2018 seem to have hit charities, and according to the IRS 2018 statistics, contributions dropped by $54 billion. However, the 1.5 million registered nonprofits, of which 100,000 are in Texas, continue to impact their communities by providing food, shelter, health provisions, education, and more. Nonprofits also boost the economy of the U.S. and each individual state, and they spend almost $2 trillion annually. 

How to start a nonprofit in Texas? 

The process of forming a nonprofit in the state of Texas can be accomplished in 4 easy steps, after which it is also advisable that it applies for 501(c)(3) tax status. This exempts nonprofit corporations from federal taxes. 

Giving the Texas nonprofit a name

The guidelines for choosing a name for a Texas nonprofit state that it may not have words related to the United States Olympic Committee, terms associated with financial institutions, or any offensive terms. The name does not need to have any organizational designations. 

Availability of the name can be researched to ensure that no other existing Texas corporations are using it. The same procedure applies for the URL of the website to be created. 

Assigning a registered agent for your Texas non-profit

The registered agent that is assigned will be responsible for receiving important legal and tax documents for the nonprofit. Registered agents are usually individuals or companies that have a permanent address in Texas. They must agree to the designation before being chosen. Any member of the nonprofit can also be assigned. 

Directors must select a board and officers

Since the directors are responsible for the management of the nonprofit, they have to meet to create the board. The directors are all part of the board and they cannot act individually when making decisions. The directors create the policies that govern the nonprofit and have to hire officers for management positions. 

The officers are the individuals who will have certain responsibilities and the authority to execute these according to their job description. 

The organizational structure of the board is made up of the officers. Individuals that are officers can also be board members, as long as the organizational bylaws allow it. 

In Texas, the organizational structure must have at least 3 directors, a president and a secretary. The positions of secretary and president cannot be held by the same person. 

Texas Certificate of Formation must be filed

All sections of Form 202 must be completed in order to apply to become a nonprofit corporation in Texas. The information which has to be provided includes the name and type of nonprofit, the assigned registered agent, the management names and their addresses, members, and purpose of the organization. The following sections require information about the assets of the organization, what they will be used for, and how they will be used if the organization is dissolved. The organizer or incorporator, who can also be a legal representative, signs, dates and submits the application and can state when the effectiveness of the filing will come into effect. Applications in Texas are submitted with a $25 filing fee and can be submitted in-person, by email or online. 

How long will the application process take in Texas? 

Depending on how the application is filed, the response usually takes 2 to 7 business days. Applicants also have the option of paying an extra $25 fee to expedite the processing time. The Secretary of State can also be contacted for information. 

What are the operating procedures for a nonprofit in Texas? 

These are the same for all nonprofits across the U.S. 

The drafting of Bylaws and Conflict of Interest Policy 

These are the most essential documents needed for the effective running of the organization. 

The Bylaws ensure that everyone understands the rules and priorities, and must supplement the federal and state rules. 

The Conflict of Interest Policy lays down the rule for all decisions and ensures that they are made with the best interests of the organization in mind. 

Organizational Meeting

This is the first official meeting for the nonprofit and must be attended by the minimum number of members needed. It has to occur before the nonprofit applies for 501(c)(3) tax status. At the meeting the bylaws and conflict of interest policy are adopted, and members are temporarily appointed to carry out specific duties. 

The nonprofit is now ready to apply for an Employment Identification Number (EIN) and following that it can open a business bank account. 

Starting a nonprofit in Texas is made much easier with the help of TRUiC’s free guide. You can also find the forms, document templates and links needed to complete all the applications.