I chuckled when I saw the following list of off-the-wall tax deduction attempts, courtesy of bankrate.com. Love #8! #3? Really?!

And I thought I was bad for even pondering the deduction of makeup and Kara playing TV personality outfits for the Dollar Duo! I didn’t take the leap, which you might be able to tell based on my outfits and non-TV hair.

Add your own stretching the tax law deductions below (don’t worry, you can do it anonymously).

1) Arizona small business owner seeks deduction for toilet paper bought from his home
2) Wife donates cheating husband’s belongings to Goodwill, seeks $51,000 charitable deduction
3) Oklahoma business owner files a $2,000 check to a gynecologist as “repairs and maintenance”
4) Cleveland woman attempts to not only deduct Jacuzzi for medical reasons, but also attempts to deduct mood lighting, underwater speakers and a in-tub stereo system
5) Texas woman digs up the older trees in her backyard and donates them to charity. The IRS allowed this deduction
6) A Texas couple who’s unmarried but living together decides to file as a married couple, resulting in a messy situation
7) 85 year-old woman gets a deduction for ballroom dance lessons one year, only to attempt to deduct more dance lessons, a ball gown, and cruises with her 20 year-old dancing instructor the next year
Pet lover attempts to write off dog food as an expense for his “home security system”
9) Woman claims subletter renting a room in her house as a new “nephew” despite him being over 20 and not related to her

If you’re like about half of Minnesotans and have yet to file your taxes, maybe you can get some help on Saturday for free.

From IRS Spokeswoman Carrie Resch:
The IRS will open more than 250 local offices across the country from 9 a.m. to 2 p.m. Tax return preparation is limited to people who earn $42,000 or less, but there is no income limit for people needing assistance with other services at Taxpayer Assistance Centers.

In Minnesota, the IRS Super Saturday sites are:
• 250 Marquette Ave. in Minneapolis and
• 30 E. Seventh St. in St. Paul (nearest entrance to the IRS center is on Wabasha, across from Walgreens)

Super Saturday sites hosted by community organizations are located in Anoka, Bloomington, Brooklyn Park, Fergus Falls, Hopkins, Minneapolis, St. Cloud and St. Paul. Locations and hours of operation of all Super Saturday sites are available at IRS.gov, keyword Super Saturday or by calling 1-800-906-9887.

People who want their tax returns prepared should bring:
• Valid driver’s license or photo identification
• Social Security cards and dates of birth for all persons listed on the return
• All income statements: Forms W-2, 1099, Social Security, Unemployment, or other benefits statements, self-employment records and any documents showing taxes withheld
• Dependent child care information: payee’s name, address and Social Security Number or Taxpayer Identification Number.
• Routing and account numbers for direct deposit or debit
• Prior year tax return (if available)
• Any other pertinent documents or papers

For those who don’t want to make a trip, the IRS also offers other free services for tax preparation including the Free File program on IRS.gov. IRS customer service telephone lines, 1-800-829-1040, also will be available on Super Saturday from 9 a.m. to 2 p.m. to answer tax questions.

It’s been a busy week in the office and in my in-box.

My e-mail purging is your gain. Here are the most interesting surveys, tools and stats of the week on topics ranging from identity theft to taxes to retirement.

Need help getting your savings on track? Fidelity launched a Guide to Personal Savings (GPS– get it?!) earlier this week that features several tools. Among them– 500 free seminars available to all Americans, live webinars, and a Savings planner.

Why the big campaign for planning? Fidelity said a recent survey found that more about eight in 10 Americans are worried about their savings, but haven’t contacted a financial adviser for help because they figure they can’t afford it.

Another (cynical) reason might have to do with people being unsure about who to trust these days. A frequent refrain I’ve heard is, “Do financial planners know more about these unprecedented times that I do?” Even so, having someone to bounce ideas off of is extremely valuable, and these folks spend 40 hours a week thinking about these issues.

Companies cutting 401(k) matches to cut costs is a troubling trend. But experts say that there are alternatives to cutting the match.

H&R Block shared a couple of tax myths as we head into the last month of tax season

(more…)

My column this week deals with a the IRS’ new initiative to get everyone to fill electronically for free. In it, I question if free e-file really reduces the cost of filing for some taxpayers, with software makers upping the price for some versions.

At the end of the column I threw in two pieces of advice: To pay down debt or save your refund if you lack sufficient emergency savings (I have a  feeling that’s what most people are going to do with or without my nudging). I also said that if your income was lower this year due to a pay cut or lay off, you may qualify for some tax breaks that you were phased out of before or may find a tax credit is much more valuable this year because you made less money.

As promised, here are a few tax credits and deductions worth taking a second look. Since the tax code is now 7,453,234-gazillion pages, I surely won’t list them all here. So talk to a tax preparer or check out whether you qualify for free tax assistance at a VITA site. (more…)

Discarded wrapping paper and packaging, little plastic toy parts and game instructions. I don’t know about you, but after the presents are open, I am usually overcome by an overwhelming desire to get rid of stuff.

Fortunately, the holidays correspond with the end of the year tax time. So it’s a good time to cull through your unwanted stuff and donate it to charity.

With the economy weakening and the green movement, there’s also been an explosion of sites geared towards swapping and selling your items.

Zwaggle.com, for example, connects parents “who are tightening their belts during in a sluggish economy, but care about the environment and want to provide the very best for their kids.”

Kijiji.com is a free online classifieds site that recently surveyed couples and found 81 percent would like to get rid of dozens of items worth more than $670 in tax breaks, but can’t convince the other person to part with the junk (sound familiar, anyone?).

One local addition to the online classifieds universe is buythechange.com. Co-founder and CEO Zak Steven describes it as a “Twin Cities based alternative to Craigslist that helps community-minded people and businesses buy and sell goods and services with friends, neighbors and others they have something in common with.” Seventy percent of membership fees go back to local non-profits to strengthen communities. Memberships cost from $0 to $100.

If you want to avoid wasting money and space on items you don’t use that frequently, try neighborrow.

I haven’t tried any of these resources. Craigslist.org and Twin Cities Free Market have served me well in the sale or giving away of items. I’d prefer to give real neighbors and friends my unwanted goods if they need them.

Curbside pick-up of donations from places such as ARC and the Epilepsy Foundation make it simple to donate my items in good condition for a tax break.

But if you do use these newer sites, share your feedback.