Reduce your Property Taxes

I'm lucky enough to live in the great state of Texas. With no State income tax, Texans already get a tax break and a reduced cost of living compared to other states across the country. I recently became aware of a tax break that many other people may benefit from. As it is in my nature to share good information - here it is:

The Homestead Exemption
You may be thinking - "yeah I've heard of it - what good is it?" or "I don't want to go through all that paperwork for nothing". For those of you who have not heard of the Homestead Exemption, it is a way to protect your home from creditors and prevents them from taking your residence. What you may not know is that you may receive a tax break for filing one (I didn't!). Amounts and procedures vary by state, so check with your local county office for details.

Now, your state may be different, but I found that in Texas all I had to do was mail in the form or drop it off at the County Appraisal District's office. It was a one page form and I chose to drop it off - took 30 minutes out of my time.

The Benefit
Texas allows for a $15,000 reduction in the tax appraisal for your home. What that means is if your home is worth $100,000, you would pay taxes on $85,000. In addition, your overpaid taxes for that tax year will be automatically refunded. I did the math and my tax bill is reduced by $380 with a homestead exception. This is money that I've overpaid and will be receiving back from the appraisal district. Many Appraisal districts have websites, if not check your state website for how to file the Homestead Exception in your state.

The Library - Much more than stuffy old books

In honor of National Library week, I felt an article about the library was in order for the Tip of the Week. As much as I've benefited from my library, the least I can do is share those benefits with others who may not know about them. If you haven't visited the Library in a while, you may be surprised. About 3 years ago I wandered into the library looking for something that I now can not recall. I was surprised at what I found.

The Library has a wealth of services available to you - all for free. Aside from checking out books, some of the programs the Library in my area offers are:

• Computers with productivity software and internet access
• Magazines
• DVD & VCR Movies
• Computer workshops (how to use software programs)
• Various programs for kids for babies to preschool
• Activities & Book clubs for Teenagers & Adults
• Family Game Nights

I'm sure you now see why I'm putting this information in a debt reduction blog. Utilizing your neighborhood library, you may check out movies for a movie night, sign up for Computer Classes, or bring the kids in for game night - All at no cost to you! So head out to your library today, and go ahead and cancel those magazine subscriptions. They have plenty of them for you to read while you're there renting your next movie. Too bad they don't supply the popcorn......

Tax Time - Are you ready?

Well, Tax Day is upon us - and The Debt Assassin will take a moment to discuss those things taxing. I'll also share with you how to file for free.

First off, if you haven't filed yet - get on it. Whatever you do, file by today. Even if you're receiving a refund, or you can't pay the tax bill....No matter what - file file FILE!

See here's the deal with the IRS....they're going to take the money you owe them, but they're not going to hand out refunds unless you tell them. That includes the Tax Rebate - you MUST file a 2007 tax return to receive a tax rebate. The check dates were released, and here's a link to the Payment Schedule on the IRS website. It will tell you when you will receive yours. Those who elected direct deposit will receive their rebates quicker. But I'm getting ahead here - back to April 15th.....

"I need more time!"
There is help for you. If you need more time, you may file an extension. Keep in mind that the extension grants you additional time (up to 6 months) but you will owe interest and late charges on your taxes due. You'll want to pay as soon as you can to minimize and additional costs that you will incur. I would also suggest sending something in to the IRS - even if it's not the entire amount. You would only owe penalties on the amount you underpaid. See Form 4868 for further information. You will need a pdf viewer to read the file.

"What if I can't pay?"
Good news - the IRS has a payment plan. Form 9465 has all the details, but I strongly advise you to find alternative. Though you may pay your taxes in installments, you still incur interest and fees on taxes overdue.

I'm not condoning you do either of these methods. I'd rather see you pay with a credit card than owe the IRS - and you know how I hate credit card companies. You can hang up on the credit card companies when you can't pay them, but Uncle Sam will come knocking.
I'm notifying you of these options as a last resort, and I hope not one of my readers has to use them.

"Enough Already. Where can I file for free?"
Ok - earlier I mentioned filing your tax return for free. Check out this link to the IRS website for their FreeFile program. In order to use the program, your income must not exceed $54,000 for 2007. There is a separate program for filing a return for the sole purpose of receiving the stimulus payment. It is only for those who would otherwise not file a return.

If you are a State Farm customer - you can get a free TurboTax online membership.
If you haven't already, sign up on the State Farm website. You may have to register your current policy with the on-line account you created. When you view the My Accounts page, you should see an ad for free tax filing on the left. It will take you to the TurboTax website where you can file everything - including e-filing - for free.

I'll keep my fingers crossed that you'll get a refund - but only if you use it to pay down debt!

An Apology and a Gift

First, The Debt Assassin would like to apologize to the faithful readers of this blog for the extended absence. Let's just say many irons were in the fire and they all jumped out at once. I am once again back writing to help those of you tackle your debt issues and say goodbye to credit cards. So rest assured I won't disappear again.

On to the "gift" - I've mentioned Redbox before, and every Monday a free rental code is sent out. Here is today's code : JC10LK

It is good for one free movie rental. But what they don't tell you is that you can use it multiple times, as long as you use a different credit or debit card. Therefore, as long as you swipe a different card for each movie you rent, they will all be free. This makes it really easy to do "Movie Night" at home for free. Just be sure to return them tomorrow to avoid being charged for a second day.

Now I know this blog is about reducing debt, but you can use your cards here as long as you return the movies on time. If you planned for a movie expense in your budget, make sure you use your debit card to do it. However, I'd recommend you check out NetFlix, as they have plans that start at $4.99 a month - and you can even watch them on your PC. New memberships come with a free trial period as well.