Sunday, April 17, 2011

Are You Stuck in Fear at Tax Time? Here are some tips...

Taxes have never freaked me out before.  But this year was different.  I noticed a lot more fear, both in and around me.  The good news about fear is that we don't have to let it stop us...we can be afraid and do something anyway.  Like file...and pay...our taxes :)  Your fear is real, but you don't have to let it paralyze you.

It's important that you file on time each year.  Even if you need more time, you can easily file for a six month extension.  If you can't pay what you owe, there are options...but fewer if you haven't filed on time for the previous five years.


1)  File on time

This year the filing deadline is midnight on April 18th, 2011.  It's pretty easy these days to complete basic taxes quickly with online tools, but if you need more time...you can still file an extension.

2) Need more time?

File for a six-month extension...for FREE...by midnight on April 18th.  Jonathan over at MyMoneyBlog wrote a post on two ways to freely file for an extension online.  I was going to follow his recommendation to use TaxAct to file for an extension this year, but I ended up filing anyway.  An extension gives you up to six more months to file your taxes.  Online tools can help you estimate your taxes, and if you think you owe, it's best to pay when you file your extension, or you may accrue penalties and fees.  There are many reasons why you might want to file for an extension, just know the IRS doesn't really care why.  It's easy.  And it's free.  So if you are freaking out about time, do it and relax a little.

3) Not sure how to do your taxes?  Forms look daunting?

Use online tax filing services.  Though everyone can technically find some way to prepare and e-file for free, the most helpful services limit who can use their free versions.  I've happily used TurboTax and TaxAct and they make taxes easy with their Q&A style.  I just wish I had seen the IRS "free version" links before paying for TaxAct this year, but even so, it was only $17.95 for Federal & State.   If you have a few hundred bucks and complicated taxes, it might be a great idea to hire a professional for peace of mind.  They'll be less busy after the filing deadline (don't forget to file for an extension!)

4) Owe taxes, and can't pay?

Assuming you can't borrow or use your credit (which would probably be cheaper), if you qualify, an installment agreement is the easiest way to pay off your tax debt.  There's also a partial payment installment agreement, where some of the debt is forgiven.  If these don't apply, there are still other options.  I'm no expert, I'm just trying to point out that you will be able to face and deal with whatever your situation is and you probably aren't going to jail.  You have options.  Now breathe.

5) Fear *still* have you stuck?

You can have more time, use software to walk you through the entire process, and even if you can't pay what you owe right now, you have options.  Still stuck?  Find a "Tax Buddy".   Whether it's someone who will cheer each step of your progress or sit down with you and keep you company while you face down your tax fear...find a way to get help from someone you like and trust.   Or maybe you are afraid of what you don't know?  Afraid of what you *may* owe?  Afraid of the consequences of past mistakes?  I'll be that it's easier to *know* what your situation is, and face it...than to stay afraid of what may be.


I emptied my retirement savings to pay living expenses this past year and didn't withold enough to cover the penalty.  I was terrified to do my taxes this year and kept putting it off.  I owe the IRS over $4000 and I can't pay that right now.   But I took the time to research my options and now I no longer have fear of the unknown.  I know what I owe, I submitted paperwork for an installment plan, and I'm waiting for the IRS to send me a bill. And I released a lot of energy that was all tied up in worry and avoidance. Whew.

What do you fear the most during tax time?  How do you handle it?

Saturday, April 16, 2011

Casual reCommerce Series: "Virtual Yard Sale" Mini-Review

Welcome to Casual reCommerce, a series of posts on selling your stuff online. I've previously posted an Introduction to Selling your Stuff Online and each day this past week, a little more detail about eBay, Amazon Seller Services, AbundaTrade, craigslist. Today I'm posting a mini-review of a "virtual" or "online" yard sale, the last of the mini-reviews.


Artsy yard sale sign
Photo by /\ \/\/ /\, some rights reserved

Virtual/Online Yard Sale

Not really a service per se, a "virtual" or "online" yard sale is the concept of using free online tools and technology to promote and facilitate selling your stuff out of your house like an old school yard or garage sale. People still come to your house either by appointment or during a scheduled time like a regular yard sale and (hopefully) give you cash for your stuff. You use web-publishing tools (such as Blogger, Wordpress, Tumblr, etc) to have your "inventory" visible online. You also promote your sale using flyers on bulletin boards, craigslist posts, and by letting your social network know (via Twitter, Facebook, etc).  No yard necessary!


Friday, April 15, 2011

Casual reCommerce Series: Craigslist Mini-Review

Welcome to Casual reCommerce, a series of posts on selling your stuff online. I've previously posted an Introduction to Selling your Stuff Online and each day this week, I'll cover each method in a little more detail. I've already written about eBayAmazon.com's Seller Services, and AbundaTrade.  Today's post is on Craigslist.



Craigslist.org has a traffic rank of #10 in the US according to Alexa.  It's free and easy to use to buy and sell (and rent, trade, advertise & hire....) and has become so popular I've heard it used as a verb (as in "I'm going to craigslist that old bookcase sometime next week").  While hugely popular, especially in Los Angeles/San Francisco/New York/Seattle, its actual traffic and usefulness is mostly tied to your local community for selling.  Its humble beginnings as a community service still show through as the business model is focused on covering costs, not generating increasing profits. So you'll see a few fees, but they won't apply if you're just selling your stuff.  There is a very "hands-off" approach so you won't have help if you need it (even if you encounter a problem or a software glitch) and this can feel a little chaotic or Wild West for some folks.  Did I mention it's free?

Thursday, April 14, 2011

Casual reCommerce Series: AbundaTrade Mini-Review

Welcome to Casual reCommerce, a series of posts on selling your stuff online. I've previously posted an Introduction to Selling your Stuff Online and each day this week, I'll cover each method in a little more detail.  I've already covered eBay and Amazon.com's Seller Services, and today I talk about a way to trade your stuff for cash with AbundaTrade.


AbundaTrade.com evolved out of a music retailer's CD trade-in program and is now areCommerce pioneer.  Their site says "Get the most cash for your CDs, DVDs, Video Games & Books".  Unlike other trading sites, which facilitate individual direct or indirect trades of items on have & want lists, orAmazon's trade-in program which pays you in Amazon Gift Cards, AbundaTrade will buy your stuff for cash.  You can also choose to receive 25% more value by choosing store credit and buying from the Abunda Store where they sell inventory.  They also offer payment by gift cards.  If you want to skip cash altogether, they also offer an option to "Trade for it!" and request an item in trade such as an iPod (or an air conditioner!).  You can also use it as a fundraiser.  Lots of options for turning your "clutter to cash"!

Wednesday, April 13, 2011

Casual reCommerce Series: Amazon Seller Mini-Review

Welcome to Casual reCommerce, a series of posts on selling your stuff online. I've previously posted an Introduction to Selling your Stuff Online and each day this week, I'll cover each method in a little more detail. On Monday, I reviewed eBay and below I talk about Amazon.com's Seller services.



Alexa ranks Amazon.com as the #1 Top Shopping Site, and #5 Top Site in the US (#16 worldwide).  This may be the number one site you think of when buying online, but many people do not know how easy it is to sell using Amazon's seller services.  All sellers appear on the same product page so it's very easy to add an entry (you only need a more detailed description of *your* item and your price) and to research and set your price.

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