23 January 2007 -  Jacksonville, Florida USA                                        

Mission Accomplished

Yes, I recently passed the IRS Tax Certification exam! I am now one of the IRS Certified Tax Preparers.  I definitely can say that although I have been doing our own tax returns for five consecutive years now yet I never felt certain about doing other people’s complicated tax returns until lately.

Here's the fact that surprised me during the training.  American taxpayers forfeit $2.5 billion each year either by not filing their tax returns or not claiming the Earned Income Tax Credit. 

You know why? Because not everybody knows about the Earned Income Tax Credit (EITC).  This is a dollar for dollar deduction and is a refundable federal income tax credit for low-income working individuals and families. Which means if you qualify, the EITC will reduce your taxes and could give you refund any amount that is greater than the tax you owe up to $4,536.00--- that is if you file your federal tax returns. Even if you don't owe income tax, you can get a refund through the EITC if you file your tax returns. However, millions of American families who are eligible for the EITC do not get this benefit because they either don't know about it or they don't bother to file their returns as they thought they don't have to pay taxes anyway thus leaving billions of additional tax credit dollars unclaimed. 

Who are eligible for Earned Income Tax Credit?

Working individual whose Investment income is $2,800 or less for the year; earned income and adjusted gross income (AGI) must each be over $1 but less than:

            $36,348 ($38,348 married filing jointly) with two or more qualifying children;
            $32,001 ($34,001 married filing jointly) with one qualifying child;
            $12,120 ($14,120 married filing jointly) with no qualifying children.

2006 maximum Earned Income Tax Credit:

            $4,536 with two or more qualifying children;
            $2,747 with one qualifying child;
            $  412 with no qualifying children.

I'll add a short caveat here:  Here's how Earned Income Tax credit work.  For example if you are filing married filing jointly with 2 qualifying kids; Earned Income/AGI is $38,348 or less;  investment income is $2,800 or less and let's say after everything was said and done, your tax due is $0. That means, you'll receive a refund of $4,536 from the IRS. However, if you don't file your return, you will never get this money from Uncle Sam.

Folks, there are few free organizations and no cost options for filing your taxes correctly.   VITA and AARP Foundation are both members of Real Sense Prosperity Campaign that provide free tax counseling and preparation services to millions of low- and middle-income taxpayers.

The Northeast Florida Real Sense Prosperity Campaign provides:

• Free tax preparation by IRS-certified volunteer preparers at one of 12 different sites, with no fees or hidden charges.

• Free E-filing, so that refunds can be obtained within ten business days or fewer from the filing date.

With the Real$ense Prosperity Campaign, you can take advantage of these as well if you qualify:

• Matched Savings Accounts + IDA are savings accounts where every dollar you save is matched by $2!  Once you start saving regularly, in as little as six months, your money may be used to buy your first home; start or grow your own business or pay for college for yourself or your child.

• Free Financial Literacy Training to help recipients understand how to open or maximize bank accounts, build up a good credit rating, become first time home owners, further their education, or start their own small businesses.

• Opportunities to sit down with banking institutions, some of which offer matched dollars for new accounts for home ownership of up to 3-to-1.  Check out this link to find out more about this program.

I am now officially affiliated to this organization after I responded to the call from AARP Foundation through the City Government about their Real Sense Prosperity campaign to become one of IRS volunteer tax preparers: Make a difference in someone’s life by helping our community’s most vulnerable citizen's lift themselves out of poverty.

To avail the free service, visit our AARP Tax-Aide site locator, where you can enter your zip code and receive location addresses, schedules, and other contact information.

Those who are interested to unlock the mystery behind US taxes and you want to do it at home, check this topic from IRS website and learn for yourself.
 

P.S.  My DH is getting serious with his backyard projects ;-) Although I cringe every time he goes to Home Depot or Lowe's because he tends to spend too much on his projects but on the other hand, I am happy to see the flowers and garden grow beautifully in our backyard.  I am glad he is enjoying and taking these household chores as a leisure pursuit. I love my man!   So check out Tony’s Garden Journal for new updates.
 

    2 January 2007 -  Jacksonville, Florida USA                                        

Back to Reality

I don’t have to go back to work until next Monday, January 8 yet my life is back to being hectic again because I am on a one-week US Taxation crash course and then I have to do the comprehensive review after the class in preparation for the IRS Tax Certification Exam. My goal this month is to become an IRS Certified Tax Professional.    Hopefully, I will be able to pass the exam (“kahit pasang awa lang”) before I fly to Michigan on Feb 6.

Speaking of “pasang awa”, I did manage to pass the class that I took last fall. I had gotten a grade of B (my first B that is) hence I got kicked out from the President’s List this year.

Things are not looking good. Unluckily, I didn't get the promotion for the Accountant position I was hoping for. At any rate, I was kinda glad I am stuck in my comfort zone otherwise it would have been a bit challenging to be working with a young, energetic and perfectionist guy who is supposed to be training me for the job. Although in retrospect, my first boss in the Philippines was also a very energetic perfectionist American but he's a bit older though and you know how I hit it off and get along so well with older men ;-).  Mind you, this guy is very intelligent, meticulously organized and professional but I was told he just doesn't get along with anybody in that department... “palibhasa perpeksionistang bakla nga”. The boss would have loved me though. She and her administrative secretary actually want to hire me without a doubt however they have had to rely to the senior accountant to do the training thus the decision to fill in that open position has to be agreed unanimously.  This guy is truly convinced that neither one of us is competent enough to do the job. I don’t blame him though… he’s probably right. So up until now, the position is still unoccupied because no one has met his high standard yet.

Here’s another daunting task for me. I got a follow-up call from the State Attorney Prosecutor today telling me that I must appear to the court to press charges against the bandit who snatched my necklace so we could put him on trial.  I already dismissed this case the last time I discussed the issue with the State Attorney Prosecutor because honestly, I am too chicken to appear to a court hearing and have a face to face encounter with the bandit during the trial.  Apparently the two other victims are very persistent and determined to put the bandit behind bars. DH is also in agreement with the State Attorney so that we can get this guy off the street otherwise he will keep committing the same offense over and over again or who knows maybe even worst than stealing next time.  So that left me with no other choice but to go for it.  Never in my whole life that I experience an actual court litigation so all I can tell you for now is I am very very nervous!!!! God please help me!!!!

 

     1 January 2007 -  Jacksonville, Florida USA                                        

 

Beliefs on New Year's Eve

Here are some of Filipinos' beliefs and or traditions on New Year's Eve.

Prepare at least 7 or 13 kinds of round and sweet fruits such as watermelon, orange, apple, cantaloupe, honeydew, plum and etc on the table. Also wear something with polka dot and put some loose change in your pocket.  These are believed to bring prosperity thus you will have a very fruitful all year round life.

Get all the children up right before midnight. If you're out, make sure you return home before midnight. We follow this traditional belief that if the family gathered to pray then share a meal together at the stroke of midnight, the family will more likely stay and stick together.

It has also been our tradition to open all windows and doors to invite new spirits and make a loud noise to drive the bad ones out.

Light firecrackers at midnight. Dance and sing to bring in a Happy New Year.

Well, the only tradition I carry on with me here in the States are: DH and I make sure we have 7 or 13 fruits on the table; I, as always stayed up until after midnight.  I woke DH up an hour before midnight to join me in welcoming the New Year. We like to say a very personal prayer to God at the stroke of midnight.  I also like to wear something with polka dot on it and have loose change in our pocket ;-) 

I took down all our Christmas decorations inside our home last Saturday and I asked DH to put up the paintings I bought from the gallery store at the mall to give our home a little new make over look.   Photos are here.

My personal chef is going to cook prime rib later today for our New Year's first meal ;-)   I want to give credit to my Darling Husband who did all the cooking for us with the supervision of course of my mother-in-law.  I am so glad I married a man who knows how to cook otherwise our Christmas & New Year dinner are going to be all pancit, lumpia and adobo. LOL

I hope everyone has a safe and prosperous New Year!!