This week’s Dollar Duo tackles the annual chore of valuing your unwanted items for tax purposes. Charities don’t typically provide much guidance. It’s up to you, they say, to decide how much an item is worth for a tax break.

You’d be surprised at the rich valuations provided from Itsdeductible.com, a free service from the makers of TurboTax.

Take the skirt that’s featured in the video. It’s a work-appropriate skirt in good condition from maker Kenneth Cole. I paid between $30 and $40 on clearance a couple of years ago and figure that I wore it maybe a dozen times.

How much can I donate for this item?

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What did you do yesterday? I spent some time standing in front of my front door, running my hands around the perimeter in search of a draft. I was loving every minute of it!

This summer, we finally replaced our house’s original door (yes, from 1928) with a new, energy efficient door. The old door fit so poorly that a mouse could (and did last year) easily squeeze into our “cozy” dwelling. When the wind blew really hard you could feel it seeping through the gaps between the door and the frame from several feet away.

Who knew a decent door would give a person such satisfaction?

And now, thanks to Congress, a tax break. Thanks to Ka-Blog reader Chris, who pointed out that these credits leap frog over 2008 and begin again in 2009! And thanks for nothing, Congress!

Most, if not all, of these tax credits for energy efficient home improvements are an extension from the past couple of years. Many of us Minnesotans who traipse into a hardware store each year to buy caulk, plastic film to stick over our windows, and the like, may qualify for a credit. (more…)

Remember the economic stimulus check you received earlier this year? Barely! It feels like a long time ago since I fretted over whether to buy a flat screen TV or save the money. We bought grocery gift cards with $1200, which we’re still using, and frittered away the other $600, probably spending part of it on the new front door we purchased this summer.
It was nice to get the extra cash, but did the stimulus checks really do the job? Hmmm….

The IRS said today that more than 51,000 Minnesotans haven’t filed for their payment yet and the deadline is Oct. 15th.

Details below: (more…)

The check came right on schedule. Visions of flat screen TVs, video games and a day at the spa came with it. But I dutifully headed to Cub Foods and turned $1200 into two $660 gift cards — the maximum amount the company allows. It’s a strategy I explained in this earlier post.

Like many Americans, the other $600 from our check will go towards paying off a credit card balance. June was an expensive month, with some eating out, some reunion expenses and the purchase of a new patio set. Hence, the tracking spending exercise I started mid-June.

I must admit that exercise has fallen by the wayside of late. I did do a quick and dirty assessment, though, and our credit card transactions showed we’re spending about $15 more in gas than we budgeted and that we ate our entire fun budget for the month.

I received an e-mail today from Turbo Tax that essentially said the early bird doesn’t get the worm– he gets to revise his tax return.

Dear Valued Customer,

At TurboTax we are committed to helping you receive every deduction and credit to which you are entitled.

We are sending you this notice because at the time you prepared your Minnesota State return, your TurboTax product may not have included functionality designed to help you maximize your K-12 education deductions and credits.

If you did not incur education expenses for your children in tax year 2007, please disregard this notice. This ONLY affects you if you:

1)	Had children who attended Kindergarten through High School (grades K-12) and lived with you more than six months during 2007 AND
2)	Paid education expenses for these children in 2007 AND
3)	Did not receive a credit (Form M1, line 30) or a deduction (Form M1, line 7) on your 2007 Minnesota state return.

To find out if you already received a credit or deduction, print and/or review Form M1 of your 2007 Minnesota state return. If there is an amount on line 7 or line 30, you received your education tax deduction and/or credit and you can disregard this notice.

However, if you think you may qualify for an education credit and/or education deductions you did not receive, TurboTax can help you get the deductions and credits to which you are entitled.

Get started with step-by-step instructions to amend your return.

Sincerely,

Bob Meighan

Vice President, TurboTax

P.S. TurboTax Online for Tax Year 2007 is ONLY available until October 15, 2008. You must file your TurboTax Online amended return on or before this date. To learn more about this deduction and credit, click here. If you do not find the answers you are looking for, or if you still have questions, call 888-777-4160.