I am so excited to share the Frugal Home with all of you in a Kindle book! I spent a great deal of time compiling the best tips and advice from my years of frugal living and writing this website. For only $2.99 you can get all of the best frugal home tips and advice all in one book!

The Frugal Home book has frugal tips on beauty and bath, budgeting, cleaning, debt, decorating, entertainment, food, grocery shopping, health care, holidays and events, children, environmental tips, remodeling, home and yard work, and weddings.

Hope that you enjoy your read! Click the link to get the book!

The Frugal Home Ebook

It’s your worst nightmare and it is disguised as someone we can trust. These e-mails have been circulating for about a month now, please do not be fooled. The IRS will not send unsolicited mail to inform you of our tax account. They will use more stable means such as a telephone, but mainly they will contact you through snail mail, the post office for those who have erased that communication from your mind. Do not open these e-mails and if you do, do not go to the attached site.

Visit the site below to get more detailed information about the virus, and what to do if you think you have received one.
http://www.irs.gov/newsroom/article/0,,id=213862,00.html?portlet=6

• Receipts of charitable donations (which are now mandatory to be able to deduct donations)
• Medical expenses
• Out of pocket job or moving expenses
• Sales tax spent in a year (especially on large purchases like an RV, a car, or a boat)
• Gambling losses if you had any winnings
• Education expenses for you or your dependents
Other items that might be helpful are a list of jobs you worked during the year including self employment that way when your tax forms come in you can make sure you have some kind of documentation for each one. Bank routing and account numbers are beneficial if you would like direct deposit or direct debit.

With this folder all you have to do is collect income documents as they arrive such as W-2′s, 1099-R’s (for retirement income), 1099-G’s (for unemployment), Interest statements (anything over ten dollars must be reported), and mortgage interest statements. This is in no way the be all or end all list, and there will most likely be items you bring that can not be used. Don’t get discouraged this is a way to make tax time simpler for you and your tax specialist. Bringing in these items lets the tax pro see the whole picture and will help them ask the appropriate questions to save you money.

For more information on what to bring, and a more unique check list visit
http://www.hrblock.com/taxes/tax_tips/tax_planning/tax_checklist.html

Tuition fees, room and board, book fees, and lab fees are just the tip of the iceberg when it comes to education expenses. Thank goodness the IRS helps taxpayers out. The Hope Credit for education expenses has been around for years. Originally the Hope Credit was for the first two years of college, and had a lot of stipulations on what expenses qualified. With the American Recovery and Reinvestment Act of 2009 (the biggest tax change this year) the American Opportunity Credit arose.

This credit is available on 2009 and 2010 tax returns, and involves many changes to the old Hope Credit. Here are a few that are quite a break:

• Available to higher income individuals
• Available to those who have no tax liability
• Makes required course materials an acceptable expense
• Can be claimed for the four post secondary years not just the first two

Enjoy your schooling and stop stressing about the expenses, keep good records, and at the end of the year you could receive a break. If you have more questions check out the following link to the IRS. http://www.irs.gov/newsroom/article/0,,id=205674,00.html

Nikki McDonald is a certified Tax Professional. These tips are not meant to be a policy but meant to guide you in your own unique tax situation. Remember, no one can assist you better than your own personal tax associate.

Most taxpayers are not able to take advantage of the sales tax deduction because they do not have enough expenses to itemize. This is the best part of the 2009 sales tax deduction, it is available whether you choose to itemize or not. Now you may be saying, “There isn’t any sales tax where I live, how does this help me?” In states like Montana, Oregon, and Alaska this is true, but in cases such as these the IRS has allowed other fees and taxes to be deducted in place of the sales tax on a purchase. These fees or taxes must be assessed on the vehicle you buy, and need to be based on its sales price. There are limits to how much sales tax you can take as a deduction as well as a cap on the income you can earn and still take advantage of the deduction.

To learn more and see a video on the deduction go to http://www.irs.gov/newsroom/article/0,,id=204519,00.html

There are a few too many changes and additions to the credits to speak of them all, but the IRS link at the end is a great source of information. The Residential Energy Property Credit makes items such as insulation, exterior doors and windows, and energy efficient heating and cooling systems eligible for tax breaks. Many of the standards of the old credit are sufficient for new purchases, also most products with the Energy Star label qualify. Items put into 2009 or 2010 all will qualify for these new energy credits.

The credit has been increased to 30% of cost of improvements, and increases the credit cap to $1,500. Many other energy credits were created such as a credit for energy equipment like geothermal heat pumps and wind turbines called the Residential Energy Efficient Property Credit. This break was increased to 30% of the cost of qualified property and the best part is they removed the cap. So there is no limit to the price of the property as long as it qualifies, you get up to 30% back. Talk about some great savings! Take the time and see if these and other energy credits are right for your tax situation.

Visit http://www.irs.gov/newsroom/article/0,,id=206875,00.html for more information.

• Are you a married couple with two incomes?
• A pensioner?
• An individual with multiple jobs?
• A dependent?
• Do you receive social security and still work?

You may not be having as much withholdings held back as you like. As part of the American Recovery and Reinvestment Act of 2009 the Making Work

Pay credit gave taxpayer’s more money in their pocket from their paychecks.

The IRS adjusted the federal tax tables so that less federal tax would be withheld. A $400 credit for individuals and $800 credit for married couples will be given on your 2009 taxes to balance the extra money in your payroll. However, for all the aforementioned taxpayers too much may be given back because of multiple jobs, or something like a pension not being taken into account. If you fall into these categories you may want to have extra held back from your pay to make up the difference. This can be done by lowering your withholding number or if you are already at single and zero by having an extra set amount taken out every paycheck, all by changing your W-4.

If you’d like to calculate whether you will be covered or not so you can make a change before it’s too late check out these excellent tax calculators.

http://www.irs.gov/individuals/article/0,,id=96196,00.html   

http://hrblock.com/cmpgn/making_work_pay.html

Have you closed on a home or will you close on a home between April 8th, 2008 and November 30th, 2009? If that’s the case you may be missing out on free money. The First Time Homebuyer Credit is available to any taxpayer who has recently purchased a home and has not perviously owned a home within the 36 months preceding the closing date.

This First Time Homebuyer tax credit was originally introduced in the 2008 tax year as part of the Housing and Economic Recovery Act of 2008. Any taxpayer who closed on a home after April 8th, 2008 and before December 31st, 2008 is entitled to a refundable credit, which simply means the credit dollar for dollar can become part of a refund after taxes, of 10% of the purchase price up to $7,500. The credit is set up like a no-interest loan, by making equal payments starting in 2010 until the amount of the credit is repaid.

With the American Recovery and Reinvestment Act of 2009 the First Time Homebuyer Credit was upgraded. This refundable credit was increased to 10% of the purchase price up to $8,000, and the purchase window changed to January 1st, 2009 to November 30th, 2009. The credit lost its repayment schedule as well, becoming essentially free money as long as the home stays the taxpayer’s principal residence for the following three years.

Who says money can’t grow on trees? This may be your last chance to strike a bargain on a home of your own. Hurry though, this window is closing fast. Simply close on a home by November 30th, 2009 and either amend your 2008 tax return or claim the credit on your 2009 taxes.

For more information and regulations on this credit visit http://www.irs.gov/newsroom/article/0,,id=204671,00.html

Nikki McDonald is a certified Tax Professional. These tips are not meant to be a policy but meant to guide you in your own unique tax situation. Remember, no one can assist you better than your own personal tax associate.