(Part 2) FORM 1098-T from an eligible educational institution is REQUIRED for 2016 TO CLAIM the American Opportunity Tax Credit AOTC (previously Hope Scholarship Credit), Lifetime Learning Credit LLC, and Tuition and Fees deduction. Here are some tax tips to benefit from these credits in 2016 • Additional criteria must be satisfied for these refundable…
ASK any parent whom they would want to inherit their estate and the overwhelming majority would answer the same thing, “My kids.” Unfortunately, many Filipino parents are unintentionally disinheriting their children that they love and adore. Here is how it usually happens: A man marries, has children, works hard and accumulates an estate, i.e., generally…
Senior files Chapter 7 to discharge $40K credit cards “ To live for eternity in paradise, we have to believe in Jesus Christ who said that “I am the way, the truth and the light; No one gets to the Father, except through me.” That’s pretty simple and clear, isn’t it?” CLIENT is a foreign company…
Q: I AM a salaried employee exempt from overtime. I often work more than 40 hours per week. However, there are days when I work less than 8 hours per day. For example, last week, due to a personal emergency, I was able to work for 6 hours only. When I work less than 8…
SHOULD you operate as a sole proprietorship, partnership, corporation, LLC, or LLP? Which entity is most beneficial for you? Choosing the wrong form could cause unnecessary taxes, increased liability, and unnecessary exposure to lawsuits. What you should not do is listen to your neighbor or friend because each one has a different set of circumstances…
HAVE your credit card debts become larger than you have ever expected? Are you struggling to even keep up with the minimum payments required every month? If you are in this situation, maybe you’ve wondered about what the legal repercussions might be once you get to the point where you can no longer continue paying…
(Part 2) FORM 1098-T from an eligible educational institution is REQUIRED for 2016 TO CLAIM the American Opportunity Tax Credit AOTC (previously Hope Scholarship Credit), Lifetime Learning Credit LLC, and Tuition and Fees deduction. Here are some tax tips to benefit from these credits in 2016 • Additional criteria must be satisfied for these refundable…
Seniors choose Chapter 7 to discharge $30K and $10K credit cards CLIENT is 47, single and a registered nurse. Her income is good at $80K a year. She has no dependents except her mom who lives with her. Despite her good income, she has a default on her mortgage for $50K. She had an affair…
KNOWING how to save on auto insurance is important. Over time, the savings could be a lot of money. Here are some good tips on how to save on auto insurance: #1 Have appropriate coverage Common sense would tell you to minimize coverage to save money. But of course, you should not be overly minimizing…
Q: I WORK for a temp agency with headquarters outside California. As a condition of work, I agree to report to a location anywhere in Southern California assigned by the agency and I have to wait to be given work. Often, I report to a location and I am assigned work only after 3 or…
THERE are two different approaches to prepare for an audit: organized and shoebox. Organized means systematically arranging your records. Shoebox means simply being you—naturally disorganized. Let’s discuss each method so you can determine which one is best for your next audit. Why You Should be Organized: 1. This methodical approach of presenting data in a…
WHEN people are going through financial difficulty and are unable to pay their bills, their first reaction is often to ignore their debts and avoid contact with creditors. They think that by doing this, somehow the creditors will simply give up and go away. Bad news: This rarely works. Then one day they get a…
Senior seeks Chapter 7 relief for $19K credit cards CLIENT is 55 and single. He appears to have no problems to worry about. He is self-employed and makes about $5K monthly teaching people a special skill. He has no dependents. He owns a house that has no equity. The house is worth $400K but he owes…
Q: I WORK as a nurse at a hospital that has a strict policy of no unapproved overtime, and no going on breaks unless we are relieved by another nurse. We are forced to skip our breaks if there is no reliever (which happens a lot because we are often understaffed). As for overtime, we…
THE IRS issued new guidance requiring individuals with an interest in a “specified foreign financial asset” to attach a disclosure statement to your income tax return for any year in which the aggregate value of all such assets exceeds $50,000. Use new form Form 8938 (Statement of Specified Foreign Financial Assets) starting in 2011. Q….
IF you’ve made the decision to file bankruptcy in order to get a fresh financial start, here are some things to consider in choosing between Chapter 7 or Chapter 13. Be aware, however, that your income and expenses have a lot to do with which chapter you will be able to file because the courts…
THE American Opportunity Tax Credit AOTC and Lifetime Learning Credit can reduce your tax liability if you pay for college in 2016 even if you are studying outside of the U.S. The PATH Act makes permanent the AOTC used to be known as Hope Credit. The AOTC has been increased up to $2,500 and phases…
Another senior seeks chapter 13 relief for $50K credit cards CLIENT is 57 and recently divorced with two children, one in high school the other in college. She makes $40K yearly in middle management for a large corporation. She has $50K of credit cards accumulated while she was still married. Ex husband had good income. So,…
(Why misclassification of workers is a social justice issue) ON September 10, 2013, 53-year-old Faustino Solorio was a pedestrian standing on the shoulder of the road behind the tailgate of a truck. At this same exact time, 18 year-old Gunnar Ayala was driving his father’s car, having just finished his shift as a delivery driver for…
Q. AM I required to report bank accounts in a foreign country? A. Yes, if you have more than $10,000 at any time outside the U.S. Q. Am I exempted from reporting if my accounts are in Euros, Chinese Yuan, Philippines pesos, or Mexican pesos? A. No, you are not exempt from reporting foreign accounts…
“ The cosigner is fully legally responsible for the entire debt, just as the main borrower is.” IT is not uncommon for banks and other financial institutions to require a cosigner on a credit application. This is especially true when the applicant either has no prior credit history or the credit score is not high…
” Singles or married alike must know that certain life insurance policies have valuable cash value. There is no restriction as to where you can use the cash value for. “ A lot of people are skeptical about the value of a life insurance. You have auto, home, medical policies. You may have these because…
If you own a foreign bank account, brokerage account, mutual fund, or other financial account, you may be required to report the account annually to the government. Let’s get an understanding of what FBAR is, who must file new forms, and who do not have to file. I also included a few tips on filing…
“You as the family member have the right to give information, ask questions, participate in care plan meetings, offer suggestions, review care plan documents and accept or refuse offered care.” Last week, we discussed why it may be beneficial for a family to move a loved one into long-term care. Whether the determining even was…
” California law prohibits an employer from paying any of its employees at wage rates less than the rates paid to employees of the opposite sex for substantially similar work, and performed under similar working conditions.” Dandan Pan started work at Qualcomm, Inc. as a Market Analyst in 1993. In 2015, she was a Director…
Fights to keep house “Nowadays, the correct value of the residence is critical to keeping the house safe from the clutches of the Chapter 7 trustee, because house values are at their peaks again. Mortgage rates have been kept very low by the Feds for a long time.” When I say young senior, I mean…
Like most people, you’ve worked hard and have done your best to pay all your bills on time. But in life, at one time or another, all of us get into a situation where debt can be overwhelming. Money problems can easily overlap into other areas of our lives. Many people feel hopeless and powerless…
The IRS announced a major expansion of its “Fresh Start” initiative to help struggling taxpayers by providing: • Payment plans – more taxpayers can apply without financial statements. • Offer in Compromise OIC – IRS added flexible terms and guidelines for higher collection potential. We will explore OIC in our next article. When you owe…
” It is a wonderful thing that we and try to keep our parents, grandparents, and other family members at home as long as possible. When my grandfather had a massive stroke, we cared for him at home until he passed (which was relatively quickly). However, there are compelling reasons to seek assistance taking care…
“The new California law clearly states that a person who takes a photograph or makes an audio or video recording of a police officer (or any public officer), while the officer is in a public place, is not violating the law. Even if the officer is not strictly in a public place, the act of…
