Taxpayers who buy a new car or several other types of motor vehicles this year may be entitled to a special tax deduction when they file their 2009 federal tax returns this year. The tax break is part of the American Recovery and Reinvestment Act of 2009.

Here are seven things you should know about this new deduction:

1. State and local sales taxes paid on up to $49,500 of the purchase price of qualifying vehicles are deductible.
2. Qualified motor vehicles generally include new (not used) cars, light trucks, motor homes and motorcycles.
3. Purchases must occur after Feb. 16, 2009, and before Jan. 1, 2010.
4. This deduction can be taken regardless of whether or not you itemize other deductions on your tax return.
5. Taxpayers will claim this deduction when filing their 2009 federal income tax return next year.
6. The amount of the deduction is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers and between $250,000 and $260,000 for joint filers.
7. The deduction may not be taken on 2008 tax returns.

Consumers who recently bought a new car may find that this tax incentive means a higher refund when they file their 2009 taxes.

For more information about the sales and excise tax deduction for motor vehicle purchases visit the official IRS web site.

Source: [IRS.gov]

If you missed out on the government Cash for Clunkers rebate program a few months ago, you can still receive a tax deduction, by buying a new vehicle, before the end of the year. While this tax deduction won’t exceed the rebates offered during the Cash for Clunkers program, you’ll still have a chance to receive a large sum of your purchase back.

The American Recovery and Reinvestment Act of 2009, passed last February, allows all new car buyers to deduct the sales tax and other fees charged from the purchase of their vehicle after February 17th and before January 1st. The tax deduction can be added to the standard deduction, making it available even if you itemize your return. Plus, there is no limit to the number of vehicles you can claim under this deduction, as long as you purchase each vehicle before this deduction expires. There are some restrictions to this special tax deduction, so be sure to consult with a tax professional if you have any questions.

If you’re considering buying a new car this year, don’t miss this opportunity to increase your tax refund. Combined with low interest rates, high factory incentives and record trade-in prices, now is the perfect time to trade up to a new vehicle.

Are you riddled with the stress of making important decisions? Or, do you simply wish that you could tap into your creativity or willpower? No matter the reason why you want to increase your current thinking level-you can! The good news is, you just have to tune into some of the principles that will help you think better in no time.

Thinking under pressure: When we are under pressure, it seems our brain completely turns off. Of course, this isn’t the case, but we can become preoccupied with outside factors. Trust your instincts when under pressure. Instead of analyzing every detail, just trust yourself.

Insight: Most of our insight arrives when we are not dwelling on a problem. Insight is generated by activity in the brain’s right hemisphere. The mind is more capable of tuning into that hemisphere when it’s stress-free. So instead of worrying, take a long hot shower or a relaxing stroll. Let the ideas come to you naturally.

Pay attention to your mistakes: If you are willing to learn from your mistakes, you will certainly become a more successful person. When you have a fumble, try to figure out what you could have done differently. Since brain cells figure out how to get things done by knowing what was done wrong, you’ll be one step closer to thriving in any situation.

Memories: It is good advice to be wary of your memories. The reason is because the memory may not be all that truthful-moments are tweaked and situations altered. Trust your instincts instead of a foggy old memory.

Alternative point of view: A simple trick to readjust your thinking is to turn around your point of view. Thinking of something in the alternative will spark your brain to filter the world to what it already believes. Try it next time you play poker: think of your opponents’ points of view and then change yours to fit theirs-you might just win!

It’s hard to believe there is an upside to our current volatile economic climate. But, in fact, this is a great time to take advantage of great deals on houses, cars, and other items. Economists see our market turning as soon as 2010. They also suggest not waiting to buy something you need-bargains are out there. Below is a list of things to buy before the economy improves.

Big spenders

Buy a house: prices are down, interest rates are dipping, and a bill passed by Congress includes a credit for first-time home buyers.

Buy a car: prices are low, financing is agreeable, and rebates are aplenty due to excess inventory.

Buy diamonds: the price of diamonds have dropped significantly making it an ideal time to purchase a sparkler.

Consumer goods

Buy a TV: larger flat-panel TVs are more affordable than ever.

Buy furniture: demand has considerably decreased and resulted in excess inventory, lower prices, and great deals.

Buy clothes: since consumers are being cautious of their spending habits, clothing retailers are cutting prices to reduce inventory-the perfect time to buy the expensive suit you’ve been eyeing.

Money is often an awkward conversation topic among family and friends. However, it shouldn’t be any more uncomfortable to discuss than food, recreation, or even the air we breathe. Money is a part of life and equally as essential for survival. But, as with all things, we sometimes find ourselves in sticky situations where money is a touchy subject. Practice these pointers to exit your bind gracefully and with your best money manners!

The Nosy Neighbor: We all have them. The friend who asks what everything costs-your new sweater, your car, and even your house! Just remember that when an acquaintance sticks their nose in your financial business you are not obligated to reply. It’s also beneficial to give vague answers. Not mentioning specific numbers implies that the topic is not open for discussion.

Check Please: When paying a restaurant bill, is it obligatory to split it? Etiquette experts agree that if there is just a few dollars difference go ahead and split the check. However, it is perfectly acceptable to ask for your own check if the difference is more than you want to pay. Try to plan ahead when going to dinner with friends-if you know you’re only going to have a salad at a steak restaurant, be prepared to ask for your own bill.

The Money Lender: Of course you want to be there for a friend when there are experiencing financial woes. If you have the money and feel comfortable, go ahead and give your friend a loan. However, be sure that the lines of communication are always open when discussing payback options, deadlines and missed payments. You should never feel awkward asking for money that is owed to you.

Group Gifts: Contributing to an expensive group gift can break your budget. In these instances, consider how much it will cost you to provide your own gift. If it is less, feel free to go in on your own gift and politely refuse donating to the hefty group fund.

If you are feeling at your wit’s end with you bank, odds are you’re not alone. Banks are notorious for fees, hidden penalties, and poor interest rates. You do have options when it comes to managing your money. A credit union just might be the right choice for you. See below for some pointers on credit unions and then compare to your current banking situation. Decide which financial institution is best for your needs.

Member-Owned: Since credit unions are member-owned, you actually have a part in the ownership in the enterprise if you have an account. This results in an elevated quality in customer service. You most likely will not be seen as just another number.

Non-profit: Better interest rates and few fees are the benefits of a credit union being a not-for-profit organization. If the credit union were to make profits, they are distributed as dividends among their members. This element of credit unions is one of the biggest advantages they have over banks.

No Taxes: Since credit unions are not-for-profit they are exempt from most state and federal taxes. This status allows credit unions to improve their interest rates, reduce fees, and cutting their telephone hold time.

In an effort to cut costs, many people have begun passing up new vehicles in favor of buying pre-owned. However, now more than ever it pays to buy new.

Recently Congress has passed legislation entitling tax payers to deduct the state, local and excise taxes paid on new vehicles purchased between February 2009 and January 2010. In many cases the combination of high factory incentives, low interest rates and these new tax deductions, can allow you to drive off the lot in a brand new vehicle for less than a pre-owned vehicle.

There truly has never been a better time to buy at Honda of Wesley Chapel. Visit us today to see how much you could save by buying a new vehicle today!

In this tough economy, we’re all looking to spend less. And what’s better than less? Nothing at all! There’s more stuff out there that you can have for free than you might think. From free clothes to free vacations, you can easily find ways to hang on to your dollar.

Free Vacations:

A volunteer vacation is a great way to give back to a cause you believe in, while traveling for free. Whether it be working on a farm or hiking in the wilderness, many cause-based organizations will pay expenses for volunteers willing to work during trips abroad. Do a search for volunteer travel opportunities, and you’d be surprised by what turns up!

Free Clothes:

You can trade in your old clothes, accessories, and shoes anytime! One man’s trash is another man’s treasure. Look up thrift stores and vintage clothing shops in your town—many will have bartering systems wherein you turn in your old clothes and get store credit. Also, neighborhood communities often set up clothing swap events—a great way to get free stuff and meet new people. Another place to look for similar clothing swaps is online.

Free Haircuts:

Don’t neglect getting a trim just because of money is scarce these days. While haircuts can cost a small fortune, there are ways to get around this and still look your best. Many upscale salons have special rates or gratis haircuts provided by salon students. Volunteer to be the subject and get a free haircut out of it while helping out a budding professional—everyone wins!

With the exciting onset of Spring comes the inevitable trepidation of tax season. Many services allow you to prepare your taxes individually, but with the choices can be daunting. If you are preparing your own taxes this year, keep in mind the following tidbits about the tax services available to you.

H&R Block Tax Cut: This online service is ideal for individuals who file taxes for themselves. This program is reputable for implementing user-friendly tools and excellent audit support. The better news is that H&R Block reduced the price of the service year.

Intuit’s Turbo Tax: Known as being one of the easier programs to use, last minute filers and avid investors can quickly files and obtain the most deductions possible. It also comes with support features that ensure accuracy. Filers only pay for the service when they print or e-file.

TaxCut: The more entry-level of the programs, this service is ideal for the solo user. It is especially appealing for college students as it bundles help for FAFSA (Free Application for Federal Students) loan forms.

With the economy so topsy-turvy it’s tough to decide which advice to heed and which to disregard. The general rules of thumb that you may have used in the past may now be irrelevant. If you’re wondering if you are using the right rules check out the list of money rules to ignore.

The 3 – 6 Month Salary Emergency Fund: Instead of putting this lump sum into your emergency fund consider your living expenses. The purpose of your emergency fund is to cover your bills in times of unexpected hardship. Save enough to cover your monthly bills.

Save 10% of your monthly gross income: Experts agree that it is difficult to put a percentage on your monthly savings. In our current economic climate, it may be difficult to put aside 10% of your monthly gross income. The better rule is to put aside an amount in which you are comfortable—even if it is not 10%. Furthermore, experts also warn that expecting the 10% rule to deliver a secure retirement may leave you disappointed.

Life Insurance Should Be Five Times Your Salary: This rule of thumb applies to an employed person with two kids, so it is not accurate for everyone. A more realistic guide is for families to consider what they cannot afford without coverage. Once again, experts advise that breaking down your expenses is more beneficial than simply focusing on your income.

When To Refinance Your Home: Most homeowners have heard that it is a good idea to refinance your home when interest rates fall by 2% points. There are many mortgages with little or no closing costs. Instead of waiting for 2%, work the numbers now to see if you could benefit from half a percentage point or more off your mortgage or keeping the rate but shortening the term.

As it’s still early in the year, reflecting back on 2008 may benefit your budget. Do you see areas that could have been managed better? Was money wasted on unnecessary items? Did money just seem to disappear? Since the answer to these questions is often unanimously “yes!” this month’s money saving tips revolve around impulse buying.

Imprudent spending is easy to control. Simply use tools that help you be more cautious about hasty spending.

Credit cards are often the gateway to spontaneous spending. Try leaving your credit cards at home. Better yet, save them for emergencies.

Planning your purchases will also help you avoid unexpected spending. Try buying a magazine or newspaper subscription instead of purchasing them individually. Think about meals you would like to make during the week, grocery shop for those items, and then bring your lunch to work. Planning ahead will save you money.

Give yourself a cash allowance when you get paid. Plan your budget so you have enough cash to get you through to the next paycheck. Knowing that you have just enough cash for the necessities will lead to contentious spending.