Atlanta Bankruptcy Attorney Blog

You wouldn't run the Atlanta Marathon without training first, right? Then why would you buy a house - probably the biggest purchase you'll make in your entire life - without getting your finances in shape?

Yet that's what thousands of Americans could be doing as they rush to sign the paperwork on their first home by April 30, the last day to qualify for an $8,000 first-time homebuyer tax credit - or $6,500, if you're an existing homeowner who's lived in your previous residence for at least five years.

But there's no need to feel bad if you didn't make the deadline, say Atlanta bankruptcy attorneys. In fact, taking the time to ensure you're financially prepared will make it easier to buy - and retain - a home than any cushy tax write-off.

Continue reading "Lowering Debt Can Help Atlanta House Shoppers More Than Homebuyer Tax Credit " »

Using your tax refund to pay down debt certainly doesn't sound as fun as, say, buying a flat-screen TV or taking a much-needed vacation. But in can help get you closer to those things.

Nearly 45 percent of Americans are opting to use Uncle Sam's refund to lower their tax burdens this year, according to the National Retail Federation. And they're on to something. Reducing debt - and therefore interest - will stretch your tax refund the farthest.

That means more money in your pockets in the future - money you can use for paying the bills, saving, splurging and even taking that vacation.

Continue reading "Bankruptcy Offers a Way for Atlanta Taxpayers to Stretch Income Tax Refunds" »

If you're looking for ways to save money, your house may hold the solution.

No, I'm not talking about refinancing or selling - I'm simply talking about property taxes. Roughly 60 percent of homeowners are paying property taxes that are based on home values from several years ago, according to the National Retail Federation. That means many of us are paying thousands more dollars than we need to, since housing prices dropped dramatically after 2007.

Property taxes are supposed to be reassessed every 3 to 5 years, but counties aren't in a rush - they'd rather take the extra money. Luckily you don't have to wait for them. You can request a reassessment - and possibly lower your tax bill - yourself by filing an appeal with your county assessor's office.

Continue reading "Assessment Appeals Can Lower Property Taxes for Atlanta Homeowners" »

As if it isn't bad enough that Uncle Sam could take some of your hard-earned dollars, now scam artists want some too.

Tax frauds work because cash-strapped taxpayers are desperate for a way to lower tax bills - and are therefore more willing to let their guard down, say Atlanta bankruptcy attorneys. But this is exactly when you need to be most careful. With bills to pay, food to buy and less money than ever to do it with, it's up to you to protect your money from scam artists.

Luckily, there are some surefire ways to identify tax scams.

Continue reading "Common Sense Helps Atlanta Taxpayers Avoid Income Tax Scams" »

Layoffs and income reductions might mean more Atanta taxpayers are getting money back this tax season, but not all of us are so lucky.

So what can you do if your already tight budget now includes a tax payment to Uncle Sam? Get help. Whatever you do, don't avoid filing. Not only do IRS penalties add up more quickly than most other debts, but they can lead to garnished wages or even jail.

Fortunately, the government can be a lot more understanding than most creditors - if you follow their rules, that is. That means being open with the IRS if your financial situation is making it tough to impossible to pay off tax debt. File your taxes, even if you can't afford to pay them, and you might have a shot at the following alternatives.

Continue reading "Bankruptcy Is One Way for Chicago Taxpayers to Lower IRS Debt" »

At first glance, it looks like a good deal: Buy a new house and Uncle Sam gives you $6,500 back. But there's a pretty big catch, according to Atlanta bankruptcy attorneys.

When the federal government agreed to extend a tax credit originally intended for new homebuyers to existing homebuyers, they hoped it would encourage folks to upgrade to bigger houses - and that, in turn, would stimulate the real estate market.

Yet the market has stayed flat. Why? Because although we'd all love to have bigger, better houses, most of us are struggling to hold on to the ones we already have. Forget a new house - what we need is Chapter 13 bankruptcy.

Continue reading "Homebuyer Tax Credit Might Not Be Enough for Chicago Homeowners to Stop Foreclosure" »

Think Uncle Sam will take care of you if you lose your job? You're right - for awhile.

The first $2,400 you receive in unemployment benefits are free for you to keep, according to Atlanta bankruptcy attorneys. Make that $4,800 if you file taxes jointly as a married couple. But after that, you're responsible for paying taxes on benefits just as you would on a regular paycheck. Wondering how much you might owe? You should be receiving a Form 1099-G, which you'll report on your tax return.

Paying taxes even when you've been out of work sounds like a crap deal. But fortunately there are some ways to lessen the blow.

Continue reading "Atlanta Bankruptcy Attorneys Suggest Emergency Savings Funds For Unexpected Taxes" »

Why put off until tomorrow what you can do today - especially when it involves more money in your pockets?

Technically your tax return isn't due until April 15, but you can actually file as early as February so long as you've received all of your necessary documents - like 1099s, W-2s, receipts from charitable donations, etc., according to Atlanta bankruptcy attorneys. Why would you want to torture yourself early, you may ask? Because you have to do your taxes anyway - and the earlier you do them, the earlier you can get your refund (especially helpful for those of us in debt). With the government looking to stimulate the economy, you might be eligible for some new credits and deductions.

Continue reading "Atlanta Bankruptcy Attorneys Say Early Tax Filing Means Early Refund" »

I guess Uncle Sam never learned that it's not polite to take back a gift.

Recently it was announced that up to 15 million taxpayers could owe money from a tax credit back to the government come tax season. So what happened exactly? Under the Making Work Pay part of the stimulus package, employed Americans received a tax credit of $400 for individuals and $800 for married couples. Since it was a payroll credit, workers received the money by having less withheld on their paychecks - meaning more take-home pay. But somehow, government officials failed to take a few common cases into account when changing the tax withholding tables.

For instance, let's say you're holding down two jobs and making more than 20K at each. You could have received two credits - and will owe Uncle Sam $400 back when tax season rolls around. You may also have received too much money if you're married and both you and your spouse work and file jointly, if you're a retiree with income withheld on your pension or if you're a college student still claimed as a dependent - meaning Uncle Sam also wants a refund.

It's definitely a blow to hard-working Americans. But it's also an excellent reminder of why it's important to plan for the worst (while hoping for the best, of course!), whether you're talking about a paycheck, bonus, windfall or even a government handout.

Continue reading "Taxpayers Could Owe Stimulus Money Back to Government" »

Yes, I know that April 15 has long come and gone. But 11 million taxpayers requested a six-month extension for their 2008 taxes, which means that - for many Americans - the real do-or-die deadline is this Thursday.

With money tighter than ever, it's understandable that so many of us are wracking our brains, trying to figure out how we're going to pay that tax bill. Or maybe we were able to scrape enough together to pay our taxes on time - but we're not sure we'll be as lucky less than six months from now when we do the tax dance all over again.

But here's some advice - even if you don't have the money, file anyway and worry about how you'll pay later. If you don't file, you'll start racking up penalties immediately after your deadline - sometimes up to 25 percent of what you owe. In the best case scenario, you'll owe a lot more money. Worst case scenario, you could wind up in jail. You're better off filing and only paying what you can afford, whether that's half your payment, 10 percent or - for the moment - nothing at all. The IRS can be surprisingly lenient. No, they won't forgive your debts - but they may let you work out an installment system or a way to lower your penalties.

Continue reading "Don't Wait Until It's Really Too Late To File Taxes " »