Prior to 1958 there were no universal credit cards. Each merchant made their own credit-granting decisions and issued their own charge cards. Actually, it was rare that a card was even issued in the early days. Other than oil companies, most merchants kept paper files that listed your balance and your credit limit.

All of that changed in 1958 when Bank of America revolutionized the consumer credit industry by issuing their blue, white, and gold BankAmericard. Bank Of America literally mailed credit cards off to millions of consumers, no application required. The idea took off and today, BankAmericard (now called VISA) holders number in the millions and VISA cards are issued by over 13000 banks around the world.

How VISA Cards Work

Every VISA card is embossed with a unique set of numbers that separate that card from every other VISA card in circulation. The numbers are not random. Here's how they work:

Digit number one is not significant.

Digits two through six identify the bank that issued the VISA card.

Digits seven through twelve or fifteen, depending upon the issuer, represents the account number.

The remaining digits are called "check digits". These check digits are automatically calculated by a mathematical formula that uses all of the other card's numbers as a key. The check digit is a security device that helps to ensure that the card is not counterfeit with a fictitious number.

The VISA Card "Mag Stripe"

The black strip on the back of the VISA card is a specially-encoded magnetic tape that can be read by the card readers at the checkout stand.

All mag stripes contain the account number as a minimum. Different VISA card issuers add their own additional information to the stripe. This may include your full name, ATM "Fast Cash" preferences and more.

How The Merchant Gets Paid

When you use your VISA card to make a purchase, the merchant's computer payment system contacts the VISA network and transmits the information that's encoded on your card's mag stripe along with the amount of your purchase.

The VISA network contacts the computer operated by the card issuer to check your available balance (called your "open to buy"). If you have enough open to buy to cover the purchase, your balance is adjusted to reflect the purchase and the merchant's bank account is credited with the amount you spent less a service charge.

All of this happens in just seconds and you can tuck your VISA card back into your wallet and keep on shopping!

Read more>>>

One name that is recognized nearly everywhere in the world is MasterCard. The familiar red and orange circles have been a part of this organization’s identity since its beginning. What started out as Master Charge in 1967 changed in 1979 to MasterCard and after that to MasterCard International. Most recently, the name has been changed to MasterCard Worldwide. Although the name had changed several times, the organization’s commitment to service has not.

Known primarily for its credit card, MasterCard Worldwide is an organization consisting of numerous financial members from around the world. Among other things, these members have agreed to be issuers of the card known as MasterCard. Members and consumers alike benefit in many ways by being associated with MasterCard. Among most important benefit is that MasterCard is recognized globally and accepted at millions of establishments in the US and abroad.

When you choose MasterCard you have plenty of options. You can apply for a basic credit card that you can use anywhere that accepts MasterCard. If you prefer to keep a closer eye on your budget, MasterCard offers a debit card. The benefit of using a debit card is that charges are only approved IF you have funds to cover the full amount of the purchase.

Another option you have with MasterCard is purchasing personalized gift cards and prepaid gift cards. These types of cards make great gifts when you’ve run out of gift ideas. They’re also safer to use than cash and they offer more flexibility than you’d get if you purchased a gift card from one particular store. These gift cards are available in many denominations and need only be activated prior to use. They are accepted anywhere that accepts a debit-type MasterCard.

The newest addition to the MasterCard family of cards is the PayPass. With the PayPass, you need not swipe your card, enter your PIN or sign a receipt. All you need to do is tap the card against a PayPass reader and your transaction is complete. This technology is only now in the early stages but over 23 million establishments are trying it out. And early results are promising!

With MasterCard, you can make purchases, pay your bills, get money from an ATM and more. There are so many benefits associated with using your MasterCard that it really doesn’t make sense to use any other card. If you are part of the minority who don’t yet have a MasterCard, perhaps it’s time you apply!

Read more>>>

College credit cardscan be a valuable tool for students to build up an adequate credit history. However, without a sound understanding of how credit cards work, or about how to maintain personal financial responsibility, students could find themselves getting into a great deal of debt. By paying attention to the fine print on credit card applications, particularly the expiration date for introductory APRs, young people can make the best use of credit cards for college students while avoiding the worst.

If you've recently started college, you may not have given much thought yet to building up an adequate credit history, or to avoiding a bad one. But you should. Credit history is absolutely vital for some of the most important purchases you'll need to make in life. Without good credit, you'll find it difficult to buy a house, be approved for any kind of loan, or even become employed. So before applying for any college student credit cards, first make sure that you have some sound financial principles and an awareness of your college credit card options firmly in mind, in order to make the best of your credit card and avoid the worst.

Credit cards for college students are marketed to appeal to student interests. College credit cards typically come in a variety of styles and school-specific designs in order to give you the idea that you're "personalizing" your college credit card. Even if you look beyond the appeals to school spirit and a sense of community, you probably still won't see anything too out of place. College student credit cards often come with a  0% introductory APR rate, some  cash back options, "points" systems, and even rewards in the form of gift certificates or discounts for retailers targeting the 18-25 year old demographic. Retailing categories are commonly video rental stores, concert promoters, delivery services and restaurants, among others. All of this makes college student credit cards sound fairly irresistible, until you take a closer look at the fine print.

Remember, that 0% introductory APR is just that -- introductory. After a six-month period, the APR more often than not rockets up to anywhere from 17-18%, among the highest rates available on top-ranked credit cards. It's very easy in six months (and especially on a limited college budget) to become used to letting your credit card debts slide a bit. After all, a college credit card is there for you when you don't have other money handy, right? But many times young people often find to find that their steadily increasing debt rather is rapidly becoming unaffordable. Add that to the general problem of typically low income, student loans, as well as regular, unavoidable cash needs in the form of textbooks, dorm and cafeteria fees. And let's not forget about a social life! You can begin to see the problem with unwise use of credit cards for college students.

This is not to say that college student credit cards are necessarily bad things. Handled properly and in conjunction with an otherwise good academic performance, a college credit card can be a valuable asset to you in the future. A college credit card can provide proof in the event of a credit or employment check that you're financially responsible and worthy of being trusted with the loan you might need in order to buy a house or a car a few years down the line.

And, as long as you do the research, there's no reason not to take advantage of some of the rewards programs college credit cards offer, or even to show a little school spirit with your credit card design. But the cardinal rule here is to show financial responsibility. Draw up a budget and stick to it. Even if it means scaling back on a few planned purchases or some trips to local clubs, it's better to go without a little bit of pleasure now rather than face heavy APRs and overwhelming debts later.

And, let's be frank ... if you're too worried about your ability to stick to a budget, consider waiting a few years before applying for a college student credit card. Credit cards aren't going anywhere, and you'll be able to find many of the same great offers later, once you have the financial wherewithal to deal with some of the hidden pitfalls.

by : mailo berz

Read more>>>

With more than a decade of experience in marketing, ranking from pay-per-click to direct mail, I’ve seen a lot of failures and far more successes when it comes to marketing.
Today, the art of marketing is far more complex than it once was. However, many of the same basic principles still apply. Too often, professional marketers and small business owners overlook the basic techniques that have separated successful campaigns from those that never turn a profit. Here is my all time list of effective marketing tips.
Know your audience. Successful campaigns get that way because marketers know their audience. They fully understand their needs, how to help meet those needs and how to create demand. Knowing and understanding your audience through proper market segmentation means a well targeted campaign that generates a profitable return.
Focus on the offer. A marketing offer is the driving force of marketing promotions that drive results. In fact, market testing has proven that the offer is the most significant criterion for conversion. Focus on your offer if you want to be successful.
Split test. Never ever run a campaign without testing something. One of the most common is a split test which allows you to simultaneously test two versions of something. It can be a web page, post card, or email. Split testing is essential for improving performance.
Never work alone. The most creative ideas come from working with other creative people. Don’t feel like you need to have all the answers or great ideas. You may start with an idea, but an open dialog with creative individuals will make it better.
Don’t sell on price. I’ve seen so many marketers fail because they sell on price alone. This leads to a discounting war, lower profitability, and often bankruptcy. Rather, focus on creating so much value that the perception of price becomes insignificant.
Consistent messaging. Consider the entire user experience before you launch a campaign. From email to website to offer, is the prospect having a consistent user experience? If they are, your campaigns stand above 98% of others.
Create value after the sale. As marketers, it’s our job to understand our market segment and build relationships, not dump people off at the front door of our store and walk away. Focus as much of your energy on building relationships with customers as you do prospects.
Test. Test. Test. In addition to split testing, you should consider multiple forms of testing in each marketing discipline. For direct mail, test headlines, offers, copy, time of direct mail drop, etc. Consider testing a life long mission.
Integrated Marketing Works Best. You can’t rely on one form of marketing to carry you to success. It’s okay to generate most of your leads or sales through PPC marketing if you will but what happens when that dries out? Use multiple media sources to meet your goals.
Nothing can replace experience. You can run out and hire all of the best consultants in the world, but you still have to do the work. Nothing can replace actual experience. It will make you a stronger marketer and more successful in the long term.
Apply these helpful marketing tips if you want to be truly successful. These techniques and tips are applied by successful marketers on a daily basis. The result is an ever growing success rate of marketing success.

by;Robbinsville

 

Read more>>>

  The first and the foremost thing that is required to pass an journal entry is sticking to the basic principals of accounting. Mear knowledge of it will not help one must learn to practice it and simultaneously learn to apply it.
Once asked any body will tell the basic principals of debit and credit but when it comes to applying them and passing a journal entry they fail to do it.
Hence for the ease of application I had read and learned from my teacher an different way of presenting the journal entries. Which I have summarized below:-

1. In case of an Asset :  One must Debit an increase in the value of asset and credit the decrease in the value. It is because of this principal that an asset is credited while passing an depreciation entry.
2. In case of a Liability: Debit  decrease in the account and credit  increase in the account. For example: in case of an introduction of capital two accounts will be affected and they are cash account and capital account, cash account is in the nature of asset and capital in the nature of Liability (by virtue of business entity concept), when cash is brought in the asset increases and capital increases hence by following the above rule increase in asset should be debited and increase in the value of liability should be credited, hence the entry will be cash a/c Dr. to capital a/c.
3. In case of Income/ gains: The rule is similar to the rule that is applied to liabilities i.e. credit increase and debit decrease.
4. In case of Expenses/ losses: The rule is similar to assets and hence the increase in expenses should be debited and decrease in expenses should be credited.

A few examples of what we have delt with so far:

• Entry for Outstanding expenses: Expenses A/c  Dr.

To Outstanding Expenses A/c
How: Expenses as explained in rule 4 should be debited if there is an increase and following the accrual system of accounting the outstanding expenses should be recogonized and hence the entry is made following the rules 2 and 4 as outstaning expenses are in the nature of Liabilities

• Entry for accrued incomes: Accrued Income A/c  Dr.

To Income A/c
How: Accrued income is income due but not received and hence it is in the nature of assets to be specific Current assets and hence rule 1 shall apply and Income will be as per rule 3.
You are free to ask and comment on it.
There still more to come on certain other important but basic issues.

By;Apoorv aggarwal

Read more>>>

The foreign currencies market can be very intimidating, especially for those who are only starting out in the field. Beginners often find themselves losing the money that they invested on bad trades and on the wrong currencies. However, that does not change the fact that it is, indeed, a very lucrative field to trade in. Those who are looking to make money out of trading should definitely give this field a try.

While there is no foolproof plan that will work for everyone, there are different trading tips that beginners may follow in order to increase their chances of making money out of trading foreign currency. These are very simple tips that will do every investor good, no matter what their experience or skill level may be. 

Here is one good forex trading tip that will work wonders for beginners and experts alike: learn what you need to know and use it on your transactions. It will be very foolish of you to start trading without even taking the time to learn the basic of the trade. Just like with other businesses, you should ensure that you fully understand how the field works before you try your hand in it. Doing so will help you choose which transactions you should get into, and help you minimize your losses during unfortunate situations.

You should also see to it that you keep yourself updated, both in the tools that you use to aid your trade and on the techniques that you use to undertake your transactions. Trading tools and technologies change as the condition of the market changes. In order to continue making money out of fx trading, you need to ensure that you are using the best tools and the best techniques.

Finally, you should ensure that you gear yourself with the facilities that will enable you to gauge the market as accurately as possible. After all, you would be basing your decisions on the way that market trends and indicators are moving. For this reason, you should ensure that you measure the fx market properly, in order to give your trading decisions the best foundation possible.

by;Smith

Read more>>>

Forex trading can be a daunting task than stock trading. One thing that you should know is that forex market is actually simpler and straightforward than the stock market. The first thing to do is to open a trading account with a retail broker. There are some paperwork activities that are involved when you are opening an account. You are required to provide some basic information on your financial status. When your application is approved, you can fund your account so that you can begin trading. Another important issue is that you should choose the contract size and leverage that you want to use when trading.
In forex trading, leverage is important as it refers to the ratio that you want to invest in the trade. Some of the popular leverage ratios include; 10:1, 20:1, 50:1, 30:1 and 100:1. Trading with a higher leverage increases your profits as well as losses. It is important to understand the currency pairs. Within forex, each market measures the value of a single currency against another currency. An example of this is in EUR/USD, the value of euro is measured in terms of US dollars. Examples of other markets include USD/JPY, USD/CHF and GBP/USD. Note that the order of currencies is very important. You can either buy or sell any currency pair. All you have to ensure is that you sell the currency at a better price that will generate good profit. For example, you can purchase GBP/USD. In this purchase, you are aiming that the pound will have higher value than the dollar.

by:Timothy stevens

Read more>>>

Mutual fund managers may decide to sell profitable stocks during random times throughout the year based on performance, market outlook, profit-taking and other factors. If this happens, the mutual fund will distribute profits to you in the form of capital gains distributions. Any capital gains you get will be reported on IRS form 1099-DIV. Distributions of capital gains are taxed at long term capital gains tax rates no matter how long you have held shares in the mutual fund. When selling shares of mutual funds, you will have to calculate capital gains/losses on each mutual fund you sell using a particular cost basis. If you have held a mutual fund for a long period of time, you will have a specific cost basis and different holding period for each shares of the fund you owned.
How to Calculate Capital Gains Distributions
The Internal Revenue Service (IRS) allows you to use 4 different accounting methods for calculating capital gains/losses. You can elect to choose the method that is most advantageous to you; based on the condition that you will stick to this method in the following years. The four accounting methods are:

• Actual Cost basis - Specific Identification
  
• Actual Cost basis - First in, first out
  
• Average Cost basis - Single category method
  
• Average Cost basis - Double category method

Example to Calculate Cost per Share Basis
We used an Excel template to calculate a sample cost per share basis. The initial investment of $12,000 was made on March 9th, 2009 that bought 383 shares. To calculate cost per share basis, we divide:
Cost per Share Basis = Buy Price / # of Shares
Cost per Share Basis = $12,000 / 383.56 = $31.37
To calculate cost per share basis for the entire set of transactions, we total up the Buy prices, total # of shares and divide the 2 together to arrive at the average cost per share basis.

by;Hussein

Read more>>>

Before you head out to purchase mutual funds for your investment portfolio, you must analyze what your investment objectives are, the levels of risk you can take, your age, the # of years to your retirement, etc. Apart from these factors, you must also research the risks that an individual mutual fund contains if you put your money in to it. One of the best ways to analyze risk is to measure the performance of the mutual fund. Many times, the performance of a mutual fund depends on the manager's stock picking abilities or his methods of allocating funds to different categories of assets. Below we explore some ways of analyzing risks of mutual fund investments.
i) Portfolio Analysis
Every mutual fund has an investment objective written on its prospectus. The investment objective describes the ultimate mission statement of the mutual fund, the types of companies/assets it will invest in (whether they are large cap, mid-cap or small cap) and whether the mutual fund invests in value or growth opportunities. One way to do portfolio analysis is to dig deeper in to the sector weights of a mutual fund.
Attribution analysis breaks down the performance of a mutual fund between i) a manager's stock picking abilities versus ii) a manager's asset allocation abilities. There are 2 methods that mutual fund managers use to pick their investment portfolios:
a) Top-down approach: Manager evaluates the economic environment as a whole and picks sectors that are set to boom and perform well during those economic times. The fund manager will then pick the best companies in each of those sectors and invest capital in to their stocks.
b) Bottom-up approach: Manager ignores the macro-economic factors such as GDP, unemployment rate or the big economic indicators. Instead, the fund manager does screening for the best companies across multiple sectors by filtering for criteria such as earnings per share growth, price to earnings ratio, dividend yield, operating cash flow, return on cash flows, return on equity and more.
With attribution analysis, an investor can tell if a fund manager has picked the right or wrong sectors of the economy or has picked the right or wrong stocks in each of the sectors. For instance, a manager could pick the wrong sectors but the best stocks in each one; this would indicate the manager is skilled at picking individual stocks but not skilled at picking booming industries.

By; Hussein

Read more>>>

      Adjustable rate mortgages (ARMs) have received some negative attention in recent years as many people found themselves unemployed or without enough equity left in their homes in order to refinance.  However, in the right scenarios, an adjustable rate mortgage offers rewards in terms of potential lower short term interest rates.
An adjustable rate mortgage is a loan that has a fixed introductory interest rate for a relatively short period of time - typically from 2 to 10 years depending upon the product - after which time, the mortgage adjusts up or down based on the loan's margin, caps, and the index which the loan is tied to.  Generally, the fixed interest rate for the defined period of time is lower than traditional 15 to 40 year fixed rate mortgage products.
There are risks and rewards when it comes to considering a 5 year adjustable rate mortgage (ARM).  The advantage is that you can save money by locking in a lower interest rate for the first five years.  Rates tend to be lower the shorter the introductory period of an ARM, so a 5 year ARM would have a lower interest rate than a 7 year ARM.  Plus, it may be possible to make additional principal reduction payments monthly or quarterly to try and shorten the life of the loan.  Saving money with an ARM by having a lower interest rate for the fixed introductory time period may enable you to make those additional payments.
The risk of having an adjustable rate mortgage comes with the indeterminate nature of the interest rate after that fixed period.  If you had an ARM in the early 2000's, you may have found yourself with an even lower interest rate once the ARM adjusted.  However, if you had an adjustable rate mortgage in 2009 when many housing markets collapsed, you may have found yourself upside down in your mortgage without the ability to refinance out of the adjustable rate product. This could spell serious trouble for you if the indexes which the loans are tied to begin to increase.
One instance where a 5 year adjustable rate mortgage may make sense is if you know you likely won't be in your home for longer than five years.  Then you may wager that you'll close out your loan before it can adjust to a potentially higher rate.
When considering the advantages of a 5 year ARM, it's important to think about the length of time you may live in your home, your current and projected future income, your ability to pay a higher monthly mortgage payment if the 5 year ARM adjusts to a higher rate before you close it out, and the savings you can achieve while paying lower interest rates during the fixed period.
It is strongly recommended that you consult with a mortgage and tax professional when weighing the risks, rewards, and advantages of a 5 year ARM.  While an ARM can help save money in the short term, it's important to have a long term plan when choosing an adjustable rate mortgage.  A licensed mortgage loan officer can help you understand the implications of choosing a 5 year ARM.

by; Nat Criss

Read more>>>

When you go to a lender which is usually the bank; (there are intermediary companies called lenders, but they don't give the money for the loan they are in between you and the bank) for a home loan there are a few that may fit your situation. It is the lenders job to find the loan (in this case the mortgage) that best suits your situation.

The three loans that are primarily available for loans for mortgages are:
1.   A Conventional Loan
2.   A FHA Loan
3.   VA Loan

A "Conventional Loan" is a regular mortgage loan. This is a go to the bank and take out a loan mortgage. FHA Loans are government loans that make it easier for people to buy a home. The thing about FHA loans is the government guarantees part of the loan. If a person has problems making their mortgage payments then the government will pay it back for you. This is providing you are in default (the bank is in the process of taking your home because you can't meet the mortgage payments). Since FHA loans are guaranteed they are easier to pay back. Keep in mind that the government will only step in and pay after your house is repossessed. Not all home sellers will agree to take this type of loan. This is because they feel there is too much red tape involved. If you qualify for a FHA loan the house cannot be a fixer upper. An FHA home has to pass the home inspection with flying colors. However there are several FHA programs for those who qualify.

VA loans are for Veterans; those who have served in the armed forces of the United States. The good thing about VA home loans is that you may have the down payment waved. With a VA loan the government guarantees the loan like an FHA loan to make the lender feel comfortable with lending the person asking the money. A VA loan can be combined with a second mortgage. In that case the bank makes the primary loan for the price of the home and the seller makes a separate loan for the buyer so they can cover the rest of the costs involved. The best thing about a VA loan is that it can be qualified so that if a future buyer is interested in your home your hands are not tied if you have to sell it.  You can also sell the home to anyone you choose. They do not have to be a veteran.

By;Nash Dadameah

Read more>>>

A lot of people never have to consider any alternative to the option that we are most familiar with when it comes to selecting a car insurance policy, but annual policies are only one of the choices you have open to you. For those of us who just need cover for driving to and from our full time jobs and running around at the weekends, an annual policy is of course ideal. Your mileage will be fairly predictable and reasonably steady throughout the year. However, if you are one of those people whose circumstances mean that they do not need to drive every day, there are various types of temporary cover you can look at.

If you think about why you may require daily car insurance or even weekly or monthly cover, there are all sorts of reasons. Starting at the most basic level, you may actually only need cover for one day. One of the commonest reasons for people choosing car insurance for one day only is when they purchase a new car and just need to drive it home from wherever it is. It does not matter whether it is a private sale or a dealer, because you still have the same potential issue of wanting the car now, but not being covered by your existing policy.

In a situation like that, you can set up temporary cover for as little as a single day. Doing so is very fast and easy as most companies now offer full services online, so you can be all set to drive off within a few minutes. The process and the information required tends to be more simplified compared to an annual policy, which is why the process can be made much faster and more immediate.

There are, of course, many other reasons why you may want insurance in place for a day, a few days or even a few months. Lots of people do not have set patterns of driving, so any situation where you may need to drive at some times but not at others lends itself to temporary cover. It may be that you need to drive a car that is not your own for a while, or you may want a friend or relative to drive your car while they stay with you. The reasons are endless, but there are many people who come across this need for daily car insurance at some time or other.

Another type of temporary cover for people with irregular driving patterns who want some sort of ongoing policy in place would be a pay as you go arrangement. The idea of this is that you only pay for the driving you do, rather than paying for weeks and weeks when you are not actually driving. This can be much more cost effective for people who do not drive to work every day, or who do need to drive, but not on any kind of regular basis. This option can be particularly popular with young people who are new drivers.

In order for this to work, a tracking system has to be fitted into your vehicle so that the insurer receives a record of all the driving that you do. You are then just billed based on your actual driving, which costs you less if you do not do much.

by; K D Grarrow

Read more>>>

   Many people these days are choosing to opt for prepaid funeral plans. When the full benefits of funeral plans are considered it is easy to see why this is so.

First of all, a funeral plan guarantees that one's funeral arrangement wishes will always be carried out. Not only can the policyholder specify a burial or cremation, but details such as casket type, vehicles, floral arrangements, and even hymn choices will be clearly followed from the instructions set in the funeral plan.

The second reason people are taking out a prepaid funeral plan is to save those arranging a funeral from the stress and upset at what is a most difficult and distressing time. With funeral plans, all arrangements are automatically taken care of, leaving loved ones free to simply commemorate one's life with dignity and respect.

A third reason why a prepaid funeral plan is so popular is that they are guaranteed to cover the bulk of the expense incurred by a funeral. This has the advantage of ensuring that those arranging the funeral do not have to find the funds for the funeral themselves. It also means that one's estate does not have to be used towards the cost of funeral payments, and can instead be distributed as intended.

Fourthly, opting for a funeral plan protects against rising funeral costs; funeral expenses are forecasted to nearly double in the next ten years. With prepaid funeral plans the policyholder pays for a funeral at today's prices with a guarantee of no additional costs regardless of by how much funeral prices rise.

Finally, where funds are tight, prepaid funeral plans allow policyholders to pay in affordable monthly instalments for the funeral they desire. Reputable funeral plan providers will usually honour one's funeral arrangement wishes at no extra cost, provided that at least two years' worth of instalments have been received.

by:Gareth Hoyle

Read more>>>

The IRS used to be concerned about accurately prepared tax returns. Now their attitude is if it's reasonably close, it's good enough.
Should you use a tax preparation software package? All it guarantees you is a pretty return. This means the arithmetic is correct. It does not guarantee the accuracy of the return.
It does not explain any new tax law that will affect the correctness of your current tax return or assist you in your 2011 tax planning strategy.
The program will not make suggestions as to what may be the best for you on your current or prior year's tax return.
It cannot read the expression on your face and know when you don't understand something.
It cannot discuss or remind you that your refund, if it's anticipated before the due date of your taxes, could be used for an IRA.
It can't advise you what would be the most tax advantageous way to finance a future purchase you are considering.
In other words, the computer in front of you doesn't have a brain. It deals with just the facts presented to it. It can't point out a deduction you overlooked.
It's not a 100% replacement for a human being. And your tax return will only be prepared as fast as you can figure it out.
This implies the IRS is saying that any individual can file a tax return without knowing the tax law and that professional help is no longer needed. Will the IRS add "Self-prepared Return" to the list of abatement of penalty excuses for erroneously prepared tax returns?
A professional can usually zip through a return. You may spend a long time struggling though all the forms – and then end up overlooking a few deductions or credits.
It's your choice – a cheap program or a tax preparer who'll give you a little more than you expected.

by: laura morton

Read more>>>

    The IRS has released instructions to help employers implement the 2011 cut in payroll taxes, along with new income-tax withholding tables that employers will used during 2011.

Millions of workers will see their take-home pay rise during 2011 because the Tax Relief, Unemployment Insurance Re-authorization, and Job Creation Act of 2010 provides a two percentage point payroll tax cut for employees, reducing their Social Security tax withholding rate from 6.2 % to 4.2 % of wages paid. This reduced Social Security withholding will have no effect on the employee's future Social Security benefits.

The new law also maintains the income-tax rates that have been in effect in recent years.

Employers should start using the withholding tables and reducing the amount of Social Security tax withheld as soon as possible in 2011 but no later than January 31, 2011. The notice contains the percentage method income tax withholding tables, the lower Social Security withholding rate, and related information that most employers need to implement these changes.

The IRS recognizes that the late enactment of these changes makes it difficult for many employers to quickly update their withholding systems. For that reason, the agency asks employers to adjust their payroll systems as soon as possible, but no later than January 31, 2011.

Employers and payroll companies will handle the withholding changes, so workers typically won't need to take any additional action, such as filling out a new W-4 withholding form.

As always, however, the IRS urges workers to review their withholding every year and, if necessary, fill out a new W-4 and give it to their employer. For example, individuals and couples with multiple jobs, people who are having children, getting married, getting divorced or buying a home, and those who typically wind up with a balance due or large refund at the end of the year may want to consider submitting revised W-4 forms.

Taxpayers will see a variety of benefits impacting several different tax years under new legislation signed into law on December 17, 2010. These include:

• A Two Percent Employee Payroll Tax Cut – The legislation includes an employee-side payroll tax cut for over 155 million workers, providing tax relief of about $112 billion in 2011 paychecks.
• Extension of Unemployment Benefits – The legislation extends emergency unemployment benefits at their current level for 13 months, preventing an estimated 7 million workers from losing their benefits over the next year as they search for jobs.
• The Child Tax Credit – The $3,000 refund-ability threshold established in the Recovery Act for the Child Tax Credit will be extended,ensuring an ongoing tax cut to 10.5 million lower-income families with 18 million children.
• The Earned Income Tax Credit – The legislation continues a Recovery Act expansion of the Earned Income Tax Credit worth, on average, $600 for families with 3 or more children, and reduces the "marriage penalty" faced by working married families. Together, these enhancements to the EITC will help 6.5 million working families with 15 million children.
• The American Opportunity Tax Credit- The new American Opportunity Tax Credit – a partially refundable tax credit worth up to $2,500 per student per year that helps more than 8 million students and their families afford the cost of college – is continued.
• 100 % Expensing – The legislation temporarily allow businesses to expense 100% of certain investments in 2011, potentially generating more than $50 billion in additional investment in 2011, which will fuel job creation.
• 1603 Renewable Energy Grants – The agreement extends the 1603 program, which provides payment in lieu of renewable energy tax credits and is helping to support tens of thousands of jobs in the wind and solar industries.

If you have any questions about online tax preparation or online tax help please contact us at onlinetaxpros.com.

by: Sandi

Read more>>>

Your choice of tax accountant would make a great difference in the tax return you would file this year. Qualified London tax accountants can help you prepare your tax return to avoid penalties. Also, they can help you maximise your savings on your returns. Therefore, finding talented London tax accountants who would meet your needs is essential for your financial well being.

Choosing the right tax accountant however can be a daunting task if you don't know what to look at when you are hiring a London tax accountant. This article has discussed the tips that you would find useful in selecting the right tax accountant for your business.

Determine your need: Your choice for London tax accountants would depend upon your need. Ask yourself if you really need the service of a tax accountant or not. When searching for an accountant make sure you inquire if he has knowledge in handling accounts of your size. It is always wise to choose London tax accountants who are experienced in their fields.

Search around: There is no dearth of qualified London tax accountants in and around London and hence your job would be to look around to find one suitable for your job. You may ask references from your friends, colleagues or lawyer about tax accountants.

Accountant search websites: There are third party websites which can help you find an accountant. These are lead generating sites which would forward your lead to the accountants registered with them. The downside of it however is that you may find more than one accountant contacting you. Hence, it is important to find a website which is authentic.

Local tax firms: Often the tax firms have qualified tax consultants who have specialised knowledge in local economy and therefore are expected to have better understanding of the tax consequence that can arise for a local business. Searching in the local tax firms is therefore a great way to find experienced London tax accountants.

Shop around: Before you decide on hiring a tax accountant in London you must ensure that you have chosen only the best one. Shopping around is the best way to ensure it. You mustn't fall prey to one who promises greater saving in unethical ways.

Fees and service charges: Of course the charges of the tax accountant would play a crucial role in your selection process for London tax accountants. The charges and fees of tax accountants would vary between the service providers depending upon their expertise and experience.

Interviewing the accountant is the most important part in the process of choosing London Tax accountants. While interviewing the accountant you may ensure that get yourself thoroughly clarified.

Find out if he/she is properly licensed
If he/she has enough experience in handling accounts of your size
If he/she has the expertise in handling accounts of your size
If he/she has knowledge about the industry. Industry specific knowledge might help the accountant to understand  his clients better.

Tax accountants would free you from the trouble preparing your tax yourself. Even you are knowledgeable enough in the tax laws, expert help from the London tax accountants would help you maximise your saving on tax deductions.

by: Michal Jorge

Read more>>>

Nowadays,there are two things i.e.Debt settlement and debt help in demand. Both are reducing the financial burden of the consumers.One of the easy and convenient ways of getting out of the financial difficulty is online debt settlement.Many Debt Help are launching to reduce the debt. Debt Reduction Help may help you to find out solutions and get you out of debt trap, if you are drowning in debt and feeling helpless.By adopting this help,you can cleverly manipulate of your funds and also free of debts within the shortest time possible.Everyone knows that debt disturbs the mental stability of the humans.If any one has debt,then its liability keeps one under huge pressure.Debt problem is increasing day by day and it becomes a global issue.

Loans are borrowed by people from the financial institutions and are not able to pay because of the overspending and variety of other reasons which has form a part of life.The unpaid amount is rising because the due amount is unpaid.The lenders in turn want immediate payment of their loan amount.Many debt settlement companies are established through which consumers can get debt help. During their financial crisis,these are the organizations which help the consumers.Various debts settlement programs are offered by such companies to overcome from this problem.These organizations advice their customers and even recommend them ways of conquering their financial hurdle.Quick repayment plans are made by them and these plans bring them into action.These organizations agents act as a third party and negotiate with the lenders for the borrowers.

A huge interest of the unpaid loans is reduced by this process. The dues also get reduced up to 50 to 60%.Nowadays,everyone wants fast alternatives and solutions at finger tips. So,for them various debt settlement options are available on the internet.Programs are offered by online debt negotiation firms help the defaulters to come out of their financial crisis. Different ways and strategies are offered by them and even negotiate with the lenders for their clients.It becomes a top choice for many consumers looking for the debt settlement programs.

 by:Zane Hamlin

Read more>>>

   For our business transactions we can also use our personal account instead of maintain a separate bank account. But we shall have to take care that the heads for the personal and business expenses are well managed and mentioned. This practice can only be followed in a situation where a person a running a small scale business and there are simple types of expenses and can easily be extracted. Here in this discussion I would like to bring some special facilities offered by different banks for business bank account, into your attention and consideration.
To promote the banking exposure to the business market and to facilitate their clients most of the banks are providing special offers to the businessmen. In this way they are attracting the businessmen for establishing the accounts for their business transactions.
Most of the banks are providing the facility of free online transferring of payments to their stakeholders. Some of the banks are also providing the facility of free cross bank online transactions to their business clients. This type of facility cuts down the expenses and very attractive for the businessmen. But this changes from state to state.
Another very attractive facility for bank account holders is free ATM card issuances. Some banks are also offering free funds transfer through ATM.
Banks are also offering the facility of OD (Overdraft) to their business clients.There is a specific limit of OD. This facility means that even if your bank account is running out of cash, you can still with draw money from your account up to a certain limit.
Some banks are also offering special credit offers at special rates to their business entities. This is for promoting the business environment as well as for the growth of the financial institutions. Lending is critically made easy for small scale entities to help them nourishing their business.
From the above discussion, we can see that there are a lot of different facilities offered to the business bank account holders. So we have a lot of reasons to highly recommend the business bank account for business transactions. All these facilities are very helpful to cut down the business expenses, nourishing you business and for giving your business a great professional appearance.

by; udi amr

Read more>>>