Have you made someone smile today? Well, hopefully I have made you now with this picture of my husband, Matt, riding my 3 year old, Shawn’s, bike on Sunday. (Matt is going to kill me for putting this in my blog today, but I just had to, it was too cute! Love you Honey…) Wasn’t Sunday just a georgeous day? We had to get the boys out of the house as much as we could. They have been couped up for far too long this winter. After Shawn’s nap in the afternoon, we took the boys and Max (our fabulous German Shepherd) and went for a walk to the park. When it was time to leave, Matt decided to hop on Shawn’s bike and tell him he was going to ride it home. You can see in the picture that Shawn is looking at him trying to figure out what is going on here.

At the beginning of this year, the US Government decided to let us take our charitable donations to Haiti count towards last years tax deductions.  This is their way of giving you an incentive to donate. I want to take a slightly different approach. I think the majority of us have had to deal with tough economic times this past year or two. Maybe not everyone out there can donate money…and that is okay. Have you ever thought about your other options? Here are some ideas I have:

• Donate your time – While this is not tax deductible, it will still make you feel good. Especially if you are currently unemployed, you probably have more free time on your hands. While you are not looking for a new job, think about donating your time at a local charity or church. I know they need volunteers as much as money.
• Donate a clunker – My husband and I actually did this several years ago. This is tax deductible, but make sure you get all the proper paperwork. The IRS has very strict guidelines these days on donating a vehicle and what you can take on your tax return.
• Pay it forward – I am sure you have all heard the stories about people paying for the person behind them at Starbucks. Think about helping someone out without expecting anything in return. I don’t know about you, but I am a believer in Karma. I know someday, it will come back to me.
• Do something nice for no reason at all – One of my favorite commercials right now has to be an insurance one where they show the gentleman helping a man get up after falling on the sidewalk or the guy picking up the toy for the little baby in a stroller. If an opportunity arises to do something nice, do it!
• Make someone smile – Just make someone smile. If you smile at someone walking down the street, it is really hard for them not to smile back. You may just turn their day around.

My whole point is when you do nice things, nice things happen. Go make someone smile today!

From the IRS: Got Kids? They may have an impact on your tax situation. Listed below are the top 10 things the IRS wants you to consider if you have children.

1. Dependents In most cases, a child can be claimed as a dependent in the year they were born. For more information see IRS Publication 501, Exemptions, Standard Deduction, and Filing Information.

2. Child Tax Credit You may be able to take this credit on your tax return for each of your children under age 17. If you do not benefit from the full amount of the Child Tax Credit, you may be eligible for the Additional Child Tax Credit. The Additional Child Tax Credit is a refundable credit and may give you a refund even if you do not owe any tax. For more information see IRS Publication 972, Child Tax Credit.

3. Child and Dependent Care Credit You may be able to claim the credit if you pay someone to care for your child under age 13 so that you can work or look for work. For more information see IRS Publication 503, Child and Dependent Care Expenses.

4. Earned Income Tax Credit The EITC is a benefit for certain people who work and have earned income from wages, self-employment or farming. EITC reduces the amount of tax you owe and may also give you a refund. For more information see IRS Publication 596, Earned Income Credit.

5. Adoption Credit You may be able to take a tax credit for qualifying expenses paid to adopt an eligible child. For more information see the instructions for IRS Form 8839, Qualified Adoption Expenses.

6. Children with Earned Income If your child has income earned from working they may be required to file a tax return. For more information see IRS Publication 501.

7. Children with Investment Income Under certain circumstances a child’s investment income may be taxed at the parent’s tax rate. For more information see IRS Publication 929, Tax Rules for Children and Dependents.

8. Coverdell Education Savings Account This savings account is used to pay qualified educational expenses at an eligible educational institution. Contributions are not deductible, however, qualified distributions generally are tax-free. For more information see IRS Publication 970, Tax Benefits for Education.

9. Higher Education Credits Education tax credits can help offset the costs of education. The American Opportunity and the Lifetime Learning Credit are education credits that reduce your federal income tax dollar-for-dollar, unlike a deduction, which reduces your taxable income. For more information see IRS Publication 970.

10. Student Loan Interest You may be able to deduct interest you pay on a qualified student loan. The deduction is claimed as an adjustment to income so you do not need to itemize your deductions. For more information see IRS Publication 970.

The forms and publications on these topics can be found on IRS.gov or by calling 800-TAX-FORM (800-829-3676).

My mom has never been bashful about what a challenge I was to raise. I was stubborn, strongwilled, in your face and I never stopped talking. As I mentioned above, I was not a bad child. I never acted out maliciously, I was just a challenge to raise with such high spirits. The funny thing is, a few years ago I saw a report on one of those news magazines that having a child like that is actually very good when they become adults. In my case it was very true, all of those traits have definitely worked in my favor. I like to think I am quite a successful woman in many different areas of my life and what was once a challenge for my mom to deal with has turned out to be some of the main reasons I am successful.

However, I am now the mother of three boys that all have some degree of those traits, plus some of my husbands. My youngest, Shawn, has always been the most like me in almost every way. This weekend proved it. I have to give you a little warning…this is for all the parents out there! This story is a little gross, but absolutely hilarious. Many of you will be able to relate.

With all three of my boys, we have taken them out of the crib and put them in a toddler bed at 15 months old. We make sure the entire bedroom is child proof and put a lock on the door so they cannot get out of their room and fall down the stairs or get into any other trouble. We make sure they have plenty of books to read and toys to play with. We do this until they are ready to come out at night and go potty, about three or four years old. It has worked very well for the older two boys who are now five and seven. So, we followed suit with Shawn our three year old.

This past week we took the lock off of his door because he is ready to get rid of the Pullup at night. He has been potty trained during the day for over a year now and his bladder is about ready to go without Pullups at night. Well, he is still three, so he kept coming out of his room at insane hours and playing and making noise…enough to wake up his brothers. On Friday of last week I had had it. I had Matt put the lock back on his door. We talked to Shawn about why and said when he showed us he was ready again we would take the lock back off and try again. I showed him….right? Mama’s got this all under control…Or not.

Fast forward to Sunday morning, I walked into Shawn’s room for a second and thought I smelled something. Didn’t think much of it at the time. When I walked back in there, Matt was helping Shawn pick his clothes for the day. I started sniffing…I could smell something and it was not pleasant. Matt couldn’t smell anything because “his sniffer is broken”. I say to Matt, “Do you smell that? It smells like poop in here.” He doesn’t smell anything. I start sniffing around the room and asking Shawn if he had pooped in his room. I look over at him and his eyes are as big as saucers and he says, “NO”. There was an Elmo chair knocked over and I kick it out of the way…I am on a mission now. Something smells like poop in this room and I am going to find it.

As I am sniffing around Matt and I are grilling Shawn and he is assuring us that he did not do anything. All the while I can tell by his little face he did. Finally, I stop, look at Matt and say, “There is a steaming pile of poop in here somewhere. We just have to find it.” Finally Shawn starts fumbling over his words saying, “I had to go potty and I couldn’t get out!” We gently ask him where it is and he walks over and moves his big 4X4 Jeep which was sitting over it. Yes, he had pooped on his carpet.

Matt and I started laughing so hard! Matt composed himself quite quickly and started telling Shawn that was not a good idea and got to cleaning up the mess. I, however, had to leave the room. I was hysterically laughing. I walked out of the room and into my bedroom and closed the door. I picked up the phone and called my mom. I was laughing so hard she could barely understand a word I said. The first words I spoke were, “There is no denying Shawn is my son!” I proceeded to tell her the story through laughter and tears. I had to repeat myself several times because I think only dogs could understand me with my shrieks of laughter.

Now, I want to make something very clear. I would have never done what Shawn did. However, the reason I saw that mirror clear as day was because of his gumption. I have always been the type that if someone thought they had shown me, I would turn around and show them.

Believe it or not, there is a very important lesson Shawn taught me that day other than the fact that laughing that hard is a good workout. People are going to knock you down. You may want something really bad and someone is going to tell you you are not ready or you can’t handle that yet. You have to pick yourself up and prove them wrong. I am not sure Shawn went the best route at doing that, but I will tell you, we are not locking the door any more and he has been much better about coming out when he is not supposed to. Don’t let people stifle your dreams. When someone tries to block you, figure out another way around it. You have to be persistent. If there is no way around them, find a way to persuade them to your side. You would be amazed at what you can do if you just try.

Thank you Shawn for that wonderful lesson. You are such an amazing teacher at three years old.

I have done it. I have decided to confront one of my greatest fears head on. Why, you might ask? Because I believe it is the next major step in my journey. More about that in a little bit. First, many of you know I have been writing quite a bit this last year. That was a little scary for me, but I took the plunge and I am loving it. It all started with me writing my newsletter last January. I was writing monthly at that point. Then, the opportunity came up to become the Sacramento Personal Finance Examiner at Examiner.com. That required me to write articles three to four times a week. There was definitely a little trepidation on my part when I decided to do that. However, that was when my butterfly wings really decided to come out. That is when my true inner beauty really started to shine for the world. It started out as discomfort, but then it turned into therapy. One little baby step lead to the next. I was starting to see the impact I was having on people.

Now, I have decided to write a book. Quite a bit more trepidation on that decision. I have to be completely honest with you, I have been getting in my own way with the book. Subconsciously I keep finding other “more important” things to do. I know in my heart there are people out there that really need to read what I have to write. But subconsciously I realize that is putting myself in a very vulnerable and uncomfortable position. That, however, is still not my greatest fear.

My greatest fear is speaking. I have always been very nervous in front of a room. I fumble over words, I use a whole lot of filler words, I wring my hands, I can barely breathe, I stumble on my words…very uncomfortable. But, I know I have a very important message that people really need to hear. And, it is not about me. I need to get over myself and realize I can really help people…lots of people. With that in mind, I decided to join Toastmasters here in Roseville. Yes, right at the beginning of tax season. I am not going to let myself get in my own way. Tax season is a very busy time, however, being a professional speaker is a dream of mine…a very scary dream, but a dream none the less.

I am very proud of this tiny little baby step I have taken and I hope it will inspire some of you to keep taking baby steps toward your dreams. No matter what life throws your way, you have to keep your eye on the prize and somehow take one tiny little baby step at a time. No matter what.

From the IRS, the American Recovery and Reinvestment Act was passed in early 2009 and created the American Opportunity Credit. This educational tax credit – which expanded the existing Hope credit – helps parents and students pay for college and college-related expenses.

Here are the top nine things the Internal Revenue Service wants you to know about this valuable credit and how you can benefit from it when you file your 2009 taxes.

1. The credit can be claimed for tuition and certain fees paid for higher education in 2009 and 2010.
2. The American Opportunity Credit can be claimed for expenses paid for any of the first four years of post-secondary education.
3. The credit is worth up to $2,500 and is based on a percentage of the cost of qualified tuition and related expenses paid during the taxable year for each eligible student. This is a $700 increase from the Hope Credit.
4. The term “qualified tuition and related expenses” has been expanded to include expenditures for required course materials. For this purpose, the term “course materials” means books, supplies and equipment required for a course of study.
5. Taxpayers will receive a tax credit based on 100 percent of the first $2,000 of tuition, fees and course materials paid during the taxable year, plus 25 percent of the next $2,000 of tuition, fees and course materials paid during the taxable year.
6. Forty percent of the credit is refundable, so even those who owe no tax can get up to $1,000 of the credit for each eligible student as cash back.
7. To be eligible for the full credit, your modified adjusted gross income must be $80,000 or less — $160,000 or less for joint filers.
8. The credit begins to decrease for individuals with incomes above $80,000 or $160,000 for joint filers and is not available for individuals who make more than $90,000 or $180,000 for joint filers.
9. The credit is claimed using Form 8863, Education Credits, (American Opportunity, Hope, and Lifetime Learning Credits), and is attached to Form 1040 or 1040A.

For more information about the American Opportunity Tax Credit visit the IRS Web site at IRS.gov/recovery.

From www.irs.gov, last year, 2 out of 3 tax returns were filed electronically. Was yours? If not, here are three important reasons to e-file your return.

1. It’s fast Your tax return will get processed more quickly if you use e-file.  If there is an error on your return, it will typically be identified and can be corrected right away.  If you file electronically and choose to have your tax refund deposited directly into your bank account, you will have your money in as few as 10 days.
2. It’s safe When you file a tax return electronically, the IRS is fully committed to protecting your information on our tax processing systems.
3. It’s time Don’t miss out on the benefits of e-file, 2 out of 3 taxpayers, 95 million, already get the benefits of e-file.

E-file software reduces the chance of making errors when you prepare your return.   However, some people still print the computer generated return and mail it to the IRS instead of hitting the “Send” button.  By mailing the return, taxpayers miss out on some important benefits of IRS e-file.

• With e-file, you get the peace of mind that comes with the electronic receipt you’ll receive notifying you that the IRS received your tax return.
• Virtually everyone can prepare a return and file it for free.  For the second year, the IRS and its partners are offering the option of Free File Fillable Forms. Another option is Traditional Free File.  About 98 million taxpayers – 70% of all taxpayers – are eligible for the IRS Traditional Free File.  Traditional Free File is a service offered by software companies and the IRS in partnership to provide free tax preparation software and free filing.
• E-file is available 24 hours a day, seven days a week, from the convenience of your own home.
• If you owe money to the IRS, e-file also allows you to file your tax return early and delay payment up until the due date.
• In 37 states and the District of Columbia, you can simultaneously e-file your federal and state tax returns.

Find out more about E-file at IRS.gov.

From www.irs.gov, the IRS urges people to use care and caution when choosing a tax preparer.  Remember, you are legally responsible for what’s on your tax return even if it was prepared by an another individual or firm.

Most tax return preparers are professional, honest and provide excellent service to their clients. However, unscrupulous tax return preparers do exist and can cause considerable financial and legal problems for their clients.  Therefore, it’s important to find a qualified tax professional.

The following tips will help you choose a preparer who will offer the best service for your tax preparation needs.

1. Check the person’s qualifications Ask if the preparer is affiliated with a professional organization that provides its members with continuing education and resources and holds them to a code of ethics.
2. Check on the preparer’s history Check to see if the preparer has any questionable history with the Better Business Bureau, the state’s board of accountancy for CPAs or the state’s bar association for attorneys.
3. Find out about their service fees Avoid preparers that base their fee on a percentage of the amount of your refund or those who claim they can obtain larger refunds than other preparers.
4. Make sure the tax preparer is accessible Make sure you will be able to contact the tax preparer after the return has been filed, even after April 15, in case questions arise.
5. Provide all records and receipts needed to prepare your return Most reputable preparers will request to see your records and receipts and will ask you multiple questions to determine your total income and your qualifications for expenses, deductions and other items.
6. Never sign a blank return Avoid tax preparers that ask you to sign a blank tax form.
7. Review the entire return before signing it Before you sign your tax return, review it and ask questions. Make sure you understand everything and are comfortable with the accuracy of the return before you sign it.
8. Make sure the preparer signs the form A paid preparer must sign the return as required by law. Although the preparer signs the return, you are responsible for the accuracy of every item on your return.  The preparer must also give you a copy of the return.

You can report abusive tax preparers and suspected tax fraud to the IRS on Form 3949-A, Information Referral or by sending a letter to Internal Revenue Service, Fresno, CA 93888.  Download Form 3949-A from IRS.gov or order by mail at 800-829-3676.

Why is communication so important when it comes to finances? Because finances are the number one reason for divorce in this country and because the divorce rate is over 50% at this point. Granted, this is not the only reason people get divorced, but I know, even the best of marriages can feel some strain because of money. The reason I chose communication to discuss today is because I am starting to put together a program that will outline steps people can take for their own economic recovery. It starts with coming to terms with your current situation. I think we have all been there at some point in our lives, whether it involved a relationship we realized just was not working for us anymore or our finances have spiraled out of control. Coming to terms with your situation acts as a catalyst towards healing. Please enjoy my blog post from earlier in the week where I share my own personal family story in regards to this (link below).

The next step is to start communicating. If you have a significant other in your life, that is who you need to communicate to first. When you pledged your love for one another, you made the commitment “For richer, for poorer”. You have chosen to walk through this life together…NOT ALONE. So, please do not feel like you need to take this burden on all by yourself.

If you do not have a significant other, find someone very close to you that you feel can be your pillar of strength. No, maybe they are not going through what you are going through, but they can be there to help you get through this. This could be your mom or dad, your children (if they are adult children only please), your dearest friends, a neighbor. You get the idea. This is someone you feel comfortable bearing your soul to. Someone you would trust your life to. Someone you know will not go blabbing your business all over the neighborhood.

If you have no one in your life you feel that comfortable with, seek out a professional. You could find yourself a good CPA (hey, I might know one of those ;0)), a financial advisor, an attorney. Make sure you check out their credentials, their resume and most importantly that you feel comfortable with them.

You have to understand, first that you are not alone. Even when economic times are good, people struggle financially. There is always a way out. It may not be pleasant to go through, but the sooner you do it and the more conscious you are when you go, the better. And, as my mother always says, “This too shall pass.” I promise.

Not only are you not alone, you don’t have to go through it alone. Being a CPA and my husband being in construction, I naturally took over the business and household finances when we moved in together. It got to the point where I was resentful of having that enormous burden on my shoulders. He was frustrated because he did not know what was going on. We now sit down weekly and go through everything. I still do the work because that is what I do for a living and it makes the most sense for us. However, he is fully aware of our financial situation and what is going on. I am hoping to get to the point where if something happens to me, he will be able to take over. I have to admit, we are still working on that one.

Same thing with Lindsay, my employee. It is very important that I keep her in the loop as well. It is a wonderful motivating factor for her. She sees what needs to be done and she takes care of it. You will not always feel comfortable sharing financial information with employees, but there may be a couple key employees where it makes sense. That will have to be a personal decision for you.

The point is, if money is the root of all evil, I feel communication is its kryptonite.

From www.irs.gov, to file your 2009 individual tax return, you’ll have to decide which form to use…unless you e-file. If you file electronically, the software automatically selects the simplest and best form for you. Whether you use e-file or prepare on paper, using the simplest form will help avoid costly errors or processing delays. And remember, if you file electronically, it speeds up the processing of your tax return and the delivery of your refund.

Here are things to consider when deciding which IRS form to file.

Use the 1040EZ if:

• Your taxable income is below $100,000
• Your filing status is Single or Married Filing Jointly
• You and your spouse – if married — are under age 65 and not blind
• You are not claiming any dependents
• Your interest income is$1,500 or less
• You are not claiming the additional standard deduction for real estate taxes, taxes on the purchase of a new motor vehicle, or disaster losses

Use the 1040A if:

• Your taxable income is below $100,000
• You have capital gain distributions
• You claim certain tax credits
• You claim deductions for IRA contributions, student loan interest, educator expenses or higher education tuition and fees

If you cannot use the 1040EZ or the 1040A, you’ll probably need to file using the 1040. You must use the 1040 if:

• Your taxable income is $100,000 or more
• You claim itemized deductions
• You are reporting self-employment income
• You are reporting income from sale of property

All IRS forms, instructions and information about e-file can be found on IRS.gov.

When I was eleven years old, my father had to have surgery for a malignant brain tumor. Considering my age, I did not understand the enormity of the situation. But, I distinctly remember asking my dad years later when I was in high school this question, “How did you go into the operating room that day knowing your brain was going to be exposed to the elements?” I mean, the thought of him having to anticipate that literally makes my stomach turn today. I remember the day as if it was yesterday. My brother and I usually rode our bikes to school, but that day my dad drove us to school. Then, it was off to the hospital for him. To have to go about your daily life with that agonizing thought?!

I will never forget his response. “I went into that operating room assuming I was not going to come out alive. I had come to terms with death and I was at peace with it.” He still had the will to live. He had two young children and a wife to live for, and he fought. He survived and is still living a full life. But, coming to terms with your situation and reality can bring an enormous sense of peace.

I remember the day some time ago that I had to come to terms with my personal financial situation. Granted, my situation was no where near as grave as my father’s health crisis, but I did learn a lesson from it. That moment that I realized that things could not keep going the way they were going. We were definitely on a crash course with reality if things did not change…and quickly. That was scary.

But, then, I came to terms with my situation. I made peace with it. Fear was holding me back and trying to get me to keep doing what I was used to doing. However, that was clearly not serving me well anymore. Once I came to terms, I felt so empowered! There was this enormous sense of relief around me. I no longer had to keep trying to make it all work knowing it did not. I could be real now. I didn’t need to keep up with anyone or put on a show.

Peace was all around me. No matter what happened, I was at peace with it. I knew we could get out of it. But, things were going to change…and that was okay.

Coming to terms with your situation can be freeing and enlightening. Are you putting on a facade? Are you trying to make something work that just clearly isn’t going to? Do you keep burying your head in the sand? It’s okay, the first step is coming to terms.