The Damage The Fiscal Cliff Tax Changes Will Do To Your Wallet – You’ll Lose Thousands

fiscal cliff tax changesWhat is going to happen on the 1st of January 2013 if the fiscal cliff is not resolved by Congress? How is the average taxpayer going to be affected by the fiscal cliff tax changes? The truth of the matter is that the middle class citizens of America are going to see their federal tax bills increase by thousands of dollars. There is also one critical mistake that we are all making that will make the fiscal cliff even worse for every person if we do not change our ways. I’m not talking about the things that are going on in Washington. There is a problem on Main Street in every city with the fiscal cliff as well.

The fiscal cliff refers to the President Bush era tax cuts were enacted in the early 2000s that are expected to expire this year. We have been kicking the can down the street for years and extending the expiration, but this year they are coming due unless Congress acts. Having these tax cuts expire will have a tremendous impact on every working American.

The Obama Administration has proposed eliminating $150 billion worth of tax breaks over the next ten years as part of his administration’s negotiations as a way to avert the dangerous fiscal cliff that the country faces at the first of the year. The tax cuts include deductions and tax breaks that are currently in place for fossil fuel companies, the valuation of company’s inventory levels, and changes in the tax rates on low capital-gains for some types of investments and real estate.

Here are some of the ways that you will be affected and what you can expect. There is also one critical mistake that we are all ignoring too that will have a very devastating impact on your wallet if not addressed.

Kicking The Can Down The Road

In December 2010, the United States Congress passed the Job Creation Act of 2010 which also addressed tax relief and unemployment insurance. The law also extended the Bush era tax cuts for an extra two years. It only applied patchwork solutions and exemptions to the Alternative Minimum Tax (AMT). So, can we expect Congress to continue to kick the can down the road and not pass substantial legislation to fix the problem? It is indeed a very real possibility. We could see them only fixing the fiscal cliff problem partially and passing new laws that address the problem for the next few years ago. Now is the time with the lull in the election cycle to tackle this and other hard problems that need bipartisan support.

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Are You Ready to Invest in a Rental Property?

This is a guest post from Emily Guy Birken who writes at One Money Design. Now seems like the perfect time for investors to get started in the landlord business. The housing market is still recovering, which means that home prices are reasonable, interest rates are low, and rents tend to be relatively high. Under these circumstances, buying a rental property seems like a no-brainer. However, owning an investment rental property is not all about pushing wheelbarrows of passive income to the bank. Being a landlord comes with many risks-and just like any investment, you may not see a payoff. To know if you’re ready to handle these risks, ask yourself the following questions: 1. Do I have the necessary cash? … Read more

Three Tips for Making Extra Cash If You Don’t Have Time

Time and money go hand in hand especially if you want to make money. Quick loans are being used as the top way to have the financial platform in order to be successful. Anyone who wants to earn extra money needs to think about how they will achieve this and specifically how much time do they have to achieve it. If you are one of the many people who do not have a lot of money at your disposal to make extra money, take a look at the top tips below on how to achieve a cash pile: Step 1: Devote weekends While it may be tempting to go out with your friends a lot on the weekends, you need … Read more

What Is COBRA Health Insurance And Why You May Need It

What is COBRA health insurance?What is COBRA health insurance? Consolidated Omnibus Budget Reconciliation Act (COBRA) is a law that was passed by Congress in the mid 1980s that gives some employees and their dependents the ability to continue receiving health insurance coverage even after leaving employment. There are many times when you need to continue to receive private health care even though you may have lost your job. Health insurance is expensive, but COBRA health insurance can help you cover the gap in coverage until you find a new job with adequate health insurance for you and your family.

Who Is Eligible For COBRA?

An employee and their immediate family is eligible for COBRA health insurance coverage if one of the following qualifying events occurs that results in loss of benefit coverage:

  • Death of the covered employee
  • Employee loses coverage due to involuntary termination
  • Employee loses coverage due to a reduction in hours as a result of resignation, discharge (except gross misconduct), layoff, strike or lockout, medical leave, or slowdown in business operation
  • Divorce or legal separation that terminates the ex-spouse’s ability to receive coverage
  • A dependent child reaching the age when he is no longer covered

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What Is Cyber Liability Business Insurance?

What is cyber liability business insurance?Very few businesses these days get by through word of mouth or paper advertising – most will have a website or be cited in various online sites (such as general advertising-listing sites or comparison sites).  Many businesses also carry out much of their work online, creating and sending often sensitive data via email.

Whilst it is advantageous to use technology so effectively, there are risks associated with conducting work over the web.  This is where cyber liability insurance comes into its own. 

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Which Is First: Paying Off Your Debt or Investing for Retirement?

This question has plagued financial planners for years. Should you pay off debt, or should they start a retirement account first? This assumes that the same amount of money is involved in each transaction. We will use $5,000 for our examples. Below we will take a look at the pros and cons of each option, and give our opinion. Paying Off Debt First Paying off debt is a great way to use a lump sum of money. Being in debt can be burdensome to the individual in debt, and feeling like you are never going to get out can be awful. If you do not have a lump sum, you may want to consider a debt management plan to help … Read more