What are the factors that make your business or your personal life stressful, out of control and chaotic? Is it the stack of papers on the kitchen counter of bills, invitations and grocery lists and you can’t find the paper you need to sign and send back to your child’s teacher? Maybe you have projects sitting on your desk and a client calls and needs an answer today, but you can’t seem to find where you placed that file. Life is full of the unexpected. How we set ourselves up to deal with the little kinks is what makes us or breaks us.
The key to success in dealing with these frustrations is to dig out of the disorganization by creating systems and processes to handle the paper flow. A disorganized person forgets to return phone calls, drops the ball, loses files and makes expensive mistakes. An organized person is put together, professional and on top of things.
Disorganization costs you money in lost opportunities, late tax filings, mistakes on jobs, and lost productivity. So how, you ask, can you avoid these pitfalls? Establish a system of checklists and processes for: 1) client contact management 2) filing paperwork, 3) folder and data management on your computer, 4) time management and 5) goal setting.
For many people the process of digging out is painful and traumatic and thus avoided at all costs. If you find yourself in that boat, find a coach or professional organizer to force you to get through the pain and come out on the other side. You can’t step on the hot coals and jump back, instead you need to run all the way across the hot coals and cross to the other side. This requires commitment and perseverance, but the rewards are great because you want to be that person that has it all put together.
If you are in need of some help I have some resources for you. Check out the NEW ORGANIZING WORKSHOP SERIES offered in Sherwood, OR by organizing expert Vicki Norris. You can find out more about Vicki at www.RestoringOrder.com. Vicki has a host of products and hands-on organizing services that will help you tackle some of these issues. If you are interested in a personal coach to help keep you on task as you thread across the hot coals contact Linda Sandberg at .(JavaScript must be enabled to view this email address). She will help you set goals and help you stick to them. Let’s make 2009 our most organized and productive year ever!
You don’t want to pay any more tax that you have to and so here are some tips to help reduce your 2008 tax burden.
1. The 2008 Stimulus Payment that you received last spring or summer is not taxable income to you and most likely you received the correct amount. However, the payment is based on your 2008 tax return and you may be eligible for a larger payment if your income level dropped in 2008, you added a child to the family or you never received your stimulus payment because you filed late. The additional amount will reduce your 2008 tax through the Recovery Rebate Credit. You will need to know the amount of payment that you received in 2008 to figure the credit and if you don’t know that amount you can find out through the IRS website link How Much Was My 2008 Stimulus Payment. The good news is that if your stimulus payment was too high you are not required to pay it back.
2. The biggest mistake made by many taxpayers is not keeping accurate records. If you run a small business, you absolutely need to have good records. Those who make charitable contributions must keep receipts and you must have good documentation on the value of your non-cash charitable contributions. Do you drive your car for business, medical trips or charitable purposes? You can take a deduction for those miles, but you must have good written records of trips that you take and the number of miles per trip.
3. The Earned Income Credit is available to low-income taxpayers who had wages, or self employment income in 2008. The credit varies based on your income and the number of children living in the home. For example, if you worked in 2008, had two children living in your home and your income was below $41,646 you may be eligible for the Earned Income Credit. You cannot have investment income in excess of $3,150 to qualify for the credit. One quarter of all filers who qualify for this credit don’t claim it, so if you think you might qualify be sure to review your eligiblity because it could be worth up to $4,800 in your pocket.
4. Elect to have your federal and state refund directly deposited into your bank account and get your money within 10 days of E-filing your return, rather than waiting four to six weeks for the check to come in the mail.
5. Don’t stress about your taxes. Find a good tax professional to quide you through the tax code and establish a relationship so that you can ask questions that concern you about your tax situation throughout the year. This will take the pain out of filing your taxes and you will be secure in knowing that your return is accurate and complete.
Barack Obama is moving quickly as he begins his work in the Oval Office. First on his agenda is the task of gathering support for his economic stimulus plan. On January 24, 2009, The New York Times laid out some of the details of the $825 billion spending plan that Obama seeks to push through Capitol Hill by mid February. The plan includes components targeting help for college students, planning to cover health care for uninsured Americans, creating new jobs by improving infrastructure and spending for new energy.
One interesting element of the American Recovery and Reinvestment Tax Bill of 2009 is the Making Work Pay Tax Credit. Workers could be eligible for a $500 tax credit ($1,000 for joint filers). The hope is to have money in the taxpayer’s pockets by June, not by sending out checks like last year, but by reducing withholding tax on employee’s paychecks. This credit would phase out for taxpayers with adjusted gross income above $75,000 ($150,000 for married filing joint). I am guessing that taxpayers will be happy to hear that they could benefit from some of the money that is being handed out from Washington. Just a little pay back after watching all our money go to help Wall Street and banks across the nation. The Emergency Economic Stabilization Act of 2008 which passed in October 2008 included TARP (Troubled Assets Relief Program) which allowed the Treasury to purchase troubled assets from financial institutions. Many of you have been a little disgruntled with this “bailout” of Wall Street and so maybe you feel like the guy in this video clip with his song “I Want some TARP.”
I hope you have a good laugh.
