Tax Change Due to New Health Care Law

For all businesses, including ALS' member libraries - there is a provision in the new Health Care Law that has nothing to do with health care - a requirement that companies issue 1099 forms at year end to ANY individual or corporation from which they purchase more than $600 worth of goods or services. Typically these 1099 forms were only required to be issued to individuals for costs other than wages or salaries. For many libraries, this would apply to independent contractors.

This would mean that your library would be required to issue a 1099 for anyone you paid $600 or more - for utilities, books, furniture, etc.

The rationale for this is explained in a CNNMoney.com article that can be found here, which states "the final impact of the law won't be known until the IRS issues its regulations on the new law, which aren't expected to arrive until sometime next year. The IRS has not yet commented on when it will release regulations or schedule public hearings, and an agency spokesman was unsure when it will do so. The new requirements kick in January 1, 2012."

So - we have some time to get prepared - or get your bookkeepers, board treasurers, or accountants ready.

Money Smart Week - Illinois

April 17-24 has been designated as "Money Smart Week - Illinois"

In the Peoria area, there are events going on through out that time period at various locations, including events hosted at the Alpha Park Library (Bartonville), Morton Public Library, Peoria Public Library - Lakeview Branch, and the Pekin Public Library.

In the Bloomington-Normal area, there are events being hosted by the Bloomington Public Library and the Normal Public Library.

If your library is hosting an event, please post a comment here so everyone can see it, too!

For more information about topics, dates and times, click here, then select your region and hit "search".

Credit Reports Revisited

Back in 2008, I entered a two-post series on credit & credit reports. As a refresher, here is a link to an article on "How to Read Your Credit Report" that discusses and the four main parts of a credit report.

Remember, each of the three major credit reporting agencies: Equifax, Experian and TransUnion are required to provide one free copy of your credit report to you - EVERY YEAR. But, you must request it from them - they are not required to send it to you automatically.

Tax Breaks for Parents

If you're a parent, check out this blog posting from a New York Times writer - it is a good summary of many different provisions in the tax law that provide tax credits, exemptions or deductions for activities related to children.

See the blog here.

Individual Income Tax Return Deadlines

The federal income tax filing deadline for individuals is April 15, 2010.

According to the Internal Revenue Service, for the tax year 2006, there were 1.4 million people who did not file tax returns for the year 2006, the estimate is that this number represents $1.3 billion in refunds.

See this article for more details.

"In cases where a return was not filed, the law provides most taxpayers with a three-year window of opportunity for claiming a refund. If no return is filed to claim the refund within three years, the money becomes the property of the U. S. Treasury."

The three year deadline for unfiled 2006 returns is April 15 2010.

So, if you didn't file a return for 2006 and might be due a refund, time is running out.

America Saves Week

Did you know it's America Saves Week? Visit http://www.americasaves.org/ All over America, people just like you are proving that you don't have to be rich to build wealth. People are paying off their debts, and saving to reach their financial goals. America Saves can help with tips and tools to help you set goals, develop strategies to reach those goals, and to start saving.

How Healthy Are Your Finances?

Have you ever wondered if what you're spending and saving is in the proposed range? I ran across this neat little calculator/tool at CNNMoney.com.

You simply step through and answer the various questions on different topics, including:

• Housing payment
• Debt
• Emergency Savings
• Diversification
• Company Stock
• Life Insurance
• Retirement Savings

As you answer each question, the site will tell you whether you're doing well or need improvement, and if you need improvement, there are tips on what the suggested levels of spending or saving should be for that topic. In addition to learning how well (or not) you are doing, this is also a good exercise to learn more about overall savings and investments.