MILEAGE RATE INCREASE
The 2007 standard mileage rate for business driving is 48 ½ cents per mile. For medical travel and moving, the rate is 20 cents per mile and for charity it’s 14 cents per mile.
Source: The Kiplinger Tax Letter, Vol. 81, No. 26
7 STEPS TO PROTECT YOUR CHILD FROM IDENTITY THEFT
Child identity theft is a relatively new crime, but reports of it are increasing. Of the identity theft complaints received by the Federal Trade Commission in 2005, 5 percent involved those younger than the age of 18.
A common red flag that something is amiss is unexpected mail such as collection letters or letters regarding financial accounts. Watch for credit reports in your child’s name even though the child has never applied for credit. If you have any reason to be suspicious, check it out.
Only disclose personal information if you know how it will be used. Avoid giving personal information out on the phone, through the mail or on the Internet unless you know exactly who you are dealing with, especially when responding to sales promotions. Avoid carrying your Social Security card in your wallet. Memorize the number and keep the card in a safe place.
Parents need to keep an eye on their children while their children are on the Internet. The rising popularity of blogs and social networking sites has caused some of these Web sites to become playgrounds for identity thieves and predators.
Don’t let your son or daughter post his or her phone number, address or school name. Tell your children not to let their friends post their personal information either.
Shred any paper that contains a Social Security number.
Ask your bank or credit union to require a photo ID and password for all transactions for your, or your child’s, accounts.
Be wary of credit card offers in the mail. Parents who have opened credit in their child’s name, as a joint account holder, don’t need to be too alarmed. “When parents do that, they open a credit history for that child and as a result they can get pre-approved credit offers,” says Rod Griffin, manager of public education at Experian. He says that some credit card providers have their own lists and could have gotten the child’s name from a banking institution if the child has a checking or savings account with his or her parents.
However, credit experts also recommend not taking any chances. If you suspect a problem, contact the three major credit bureaus (Equifax, Experian and TransUnion).
One way to opt out of prescreened offers of credit is to call a toll-free number:
(888) 5OPT-OUT (or 888-567-8688).
Source: www.bankrate.comWould you like to be informed when our next newsletter is available?
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COMPUTERIZED BOOKKEEPING TIP
Computers are part of our daily lives more than ever before. We shop, work and play using computers. So why is it that some of us are still making excuses as to why we DON’T backup our data? “I’m too busy to backup, my computer won’t crash…” Computers aren’t perfect! At any given time, your files may become corrupt, with no viable way of correcting it. The best defense is BACKING UP your data. Having a reliable backup copy can mean the difference between a slight computer setback and living through your own electronic apocalypse.
We recommend you backup your accounting data on its own device. This is a greater safeguard against mixing this data with other data. Modern technology has almost eliminated the use of floppy disks. This has been replaced with the more commonly used CD. Regardless of the device you use, the following is a complete backup schedule you can follow:
Daily: Monday & Thursday - Use Disk Set A
Tuesday & Friday - Use Disk Set B
Wednesday & Saturday - Use Disk Set C
Weekly: Week 1 & Week 4 - Use Disk Set D
Week 2 & Week 5 - Use Disk Set E
Week 3 - Use Disk Set F
Monthly: Backup your data on a monthly basis on a separate set of disks labeled for that month-end. (i.e. January)
Year-end: Make two sets of backups prior to year-end close. These backups will be marked permanent and NOT re-used. Store these backups apart from each other, one set with year-end records, files, bank statements, etc. and the other in a filing cabinet or a fire-proof safe.
By alternating between different sets of disks, you should only ever lose one day’s worth of work. If this schedule seems over-kill, just think of the cost comparison between the few minutes it takes to backup, the minimal cost of CD’s and the time, energy and possible monetary cost of recreating all of your data.
IRA Contributions
If you are planning on making IRA contributions for 2006, the deadline to submit them to our office is Thursday, April 12, 2007. If you have any questions, please contact Kelley Young at 610-967-4711.
tax season office hours
Monday 9:00 AM – 7:00 PM
Tuesday – Thursday 8:00 AM – 7:00 PM
Friday 8:00 AM – 5:00 PM
Saturday 9:00 AM – NOON
Our office is closed each weekday from 12:00 – 1:00 for lunch.
Checklist for tax information
Now that tax season has officially arrived, you’ll want to start collecting all of your personal and financial documents from 2006 to help us prepare your return. In order to make this process a little easier for you, feel free to download our 2006 Individual Tax Checklist from our website’s “Resources” page – it’s a simple way to make sure you’ve got everything you need! As always, if you have any questions please call our office.
pennsylvania moving to paperless filing
The state of Pennsylvania continues to move towards a paperless filing system…starting in 2007, Sales and Use Tax returns are to be filed online using ETIDES or by phone using EFT. State unemployment compensation will need to be filed online after the first quarter in 2007.
If you are not set up with EFT or ETIDES, please contact our office for assistance.
deductible mortgage insurance premiums
People who itemize deductions on their tax returns can deduct private mortgage insurance premiums in 2007 if the policy was issued after 2006. The deduction phases out for couples whose Adjusted Gross Income (AGI) is more than $100,000 and for singles with over $50,000 of AGI.
Source: The Kiplinger Tax Letter, Vol. 81, No. 26
And remember, don't search the internet looking for the best interest rates! Recently, the PA Dept. of Banking warned against several internet loan companies who scammed potential borrowers by asking for advanced fees. Don't put yourself at risk online - instead, come to Stortz & Associates. Contact Jen Ernst Bednar for today's mortgage rates - no advanced fees collected and rate quotes you can trust!