TAX TIME AGAIN

Every year, April fifteenth seems to creep up on us. And every year, we put off doing our taxes until the last minute. Have you every considered paying someone else do all that work for you? Would it save you money? Are you aware that tax laws change frequently? THAT MONEY SHOW teamed up with Gary Schatsky, a financial planner and founder of Objectiveadvice.com, to report some beneficial changes in the federal tax code, and to help you decide whether an expert's assistance might make tax season a lot easier for you.

What's new?
According to Schatsky, there aren't that many big changes in the tax codes this year, but here are a few of the ones that might save you some time and bucks:

• If you've started paying back student loans in the last five years, you can deduct up to two thousand dollars of student loan interest. You can do that even if you don't itemize.
  
  
• If you've had a preparer put together your return, you can check a box to have the IRS contact him or her with simple questions about your return (e.g. - an addition error).
  
  
• Previously, taxpayers in high tax brackets paid a rate of 20% on capital gains from real estate and investments they held for a year or more. Under the new law, if they hold the investment for more than five years, that rate will drop to 18%. For those in lower tax brackets, that rate could be a low as 8%.

Do it yourself?
As with most things in life, the more complicated it is, the better off you are in seeking professional help. Keep in mind that a professional tax preparer may be able to save you money and give you good advice for next year. Take advantage of the advice she'll give you. Make sure to discuss your situation, let her know what your goals are, and any possible deductions that might be available to you. On the other hand, if you have a very simple financial situation, you'll probably save some money by preparing your own returns. You might also consider using a software program to help you. Remember, the deadline for filing your taxes is April 15.

For more information on how you can achieve your financial goals, visit our archive, and read:

• Saving Money
• Lower Your Taxes
• Managing Debt