With tax time right around the corner, here is some great info to help with tough tax questions from our friends at USAA.  JJ has been on our show before and he is awesome when it comes to helping us navigate our financial world, this info just might be helpful for you or someone in your extended family and/or friends.  We have a new feature on our blog that allows you to share with your Facebook friends or Twitter followers, look for it in the upper right hand side of this post!

5 tax tips for tough tax situations

As the April 15^th deadline looms, tax time becomes crazier and crazier.  And that’s in the best of circumstances.  If you add in a few of life’s curveballs, you could have a downright disaster. So, your returns may be relatively uncomplicated, but new circumstances can make tax preparation a bit trickier.

This year, says USAA’s J.J. Montanaro, a Certified Financial Planner practitioner, you may want to consider engaging the help of a tax professional to make sure you are taking advantage of the tax incentives. However, whether you tackle your taxes yourself or turn to a tax pro, follow these tips to avoid mistakes.

1. You Got Divorced

Notwithstanding reality, when it comes to your filing status it’s black and white.  Even if the final date on your divorce is Dec. 31, the IRS views you as divorced for the entire year – so don’t choose married filing jointly status on your return.

If you have children, your divorce decree should state who can claim them as dependents. If that wasn’t decided, you and your former spouse can arrange to alternate years using IRS Form 8332. Visit IRS.gov for more information.

2. Your Spouse Dies

You can file as married filing jointly for the tax year your spouse died (unless you remarried by the end of the year). Additionally, you may also be eligible to file as a qualifying widow(er) with dependent child for 2 years following the year your spouse died.

Keep in mind that life insurance payouts are generally free from federal income tax. But if you invested the money and earned interest, the interest still needs to be reported.

3. Your Dependents Go Solo

You can still claim an exemption for your children if you pay at least half their expenses, they are full-time students, they are younger than 24 at the end of the year, and meet other IRS requirements. Make sure they don’t file returns claiming themselves as dependents, which is viewed as “double dipping” by the IRS.

4. You Have W-2s From Employers In Multiple States

This can be a problem if you must file a state return for one or more states. State laws and filing requirements vary, so check with the state in which you had earned income for specific requirements.  Remember, bad news doesn’t get better with time.  Keep in mind that relocating for employment reasons can make moving expenses deductible.

5. Your W-2 Is Wrong

Contact your employer immediately if your name, Social Security number, street address, or pay amount contains errors. The employer should then file a Form W-2c with the proper details.

USAA or its affiliates do not provide tax advice.  The tax information contained in the material is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding paying taxes or tax penalties that may be imposed on the taxpayer. Taxpayers should seek the advice based on their own particular circumstances from an independent tax advisor.

USAA means United Services Automobile Association and its affiliates.

www.usaa.com

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Update:  30 Nov 08 – To order The Green Plate or for more information contact Jill at amy.connett(at)us.army.mil

LIVE Tuesday at 10pmET join us for a new episode of Navy Wife Radio!

from navywiferadio.com

Tuesday- Nov 25th – Thanksgiving Show - Today’s show is all about entertaining and preparing for the holidays. We’ll share our Thanksgiving traditions and welcome Jill Connett, author of *The Green Plate*.

Also USAA’s, J.J. Montanaro stops by to give us some tips on budgeting for the Holidays. Join us!

We invite you to join the conversation!

Show Details:

25 Nov 08 – Tuesday 10pm ET

Yahoo IM: Navy Wife Radio

You don’t want to miss this show LIVE! Our call in # is 646-652-4629.

To listen live go to: http://www.blogtalkradio.com/navywiferadio

or

Show link: http://www.blogtalkradio.com/navywiferadio/2008/11/26/Navy-Wife-Radio

More on *The Green Plate”:

The Green Plate
by Jill Connett

“Moving is hard. Saying goodbye to friends is hard. Starting over is hard. In Jill Connett’s The Green Plate, discover how a simple plastic plate begins a friendship, helps friends say farewell, and reminds a family that time should not be wasted to know people and enjoy special times with friends and family. A simple act of hospitality, presenting new neighbors with brownies on a green plate, begins a journey of friendship. That same green plate becomes the farewell gift as friends must separate, a symbol of memories as death comes unexpectedly and encouragement to move on in the life of a military family. The Green Plate offers smiles, tears, and inspiration to begin again wherever and whenever the need arises to start over. Enjoy this tribute to hospitality, the military lifestyle, sacrifices, friendships past, and those to come. Jill Connett is from Talladega, Alabama. She teaches school and supports her husband’s military career wherever she and her family live at the time. She truly loves being a military wife and mother. She has loved traveling to new places and meeting new people among the hardships that come with always starting over. She writes, “Thank you to all of my family and friends who have supported us as we’ve moved from place to place. I’m proud of my husband and what he does, and I’m very blessed to be surrounded with people who share and support our adventurous lifestyle. May we have many more adventures to come.” The Green Plate story helps capture the enormous personal burden American military families are bearing today. Meeting US servicemen and servicewomen in the field and their families back home, I’ve always been humbled by their commitment and strength in the face of very real dangers. Jill Connett gives a revealing window into the joys and sadness of life on the homefront. -Jim Sciutto, Senior Foreign Correspondent, ABC News”

32 pages

more info

More on J.J. Montanaro

Joseph “J.J.” Montanaro is a CERTIFIED FINANCIAL PLANNER™ practitioner. He is a native of Kansas City and earned his bachelor’s degree in Engineering from the United States Military Academy, West Point, N.Y. He holds Series 7, 63, and 65 licenses with the Financial Industry Regulatory Authority (FINRA). He is a member of the Financial Planning Association.

Montanaro has 14 years of experience in the financial services industry as a financial planner. Prior to joining USAA in December of 2002, Joseph owned and operated an office as a financial planner. Before entering the financial services industry, Joseph served in the U.S. Army for six years on active duty and is currently a Lieutenant Colonel in the United States Army Reserve.

Outside of work, Joseph enjoys spending time with his wife and three kids. His other interests include running, golf and reading.

For more info on J.J.’s webinar’s visit his webpage.

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