Archive for the ‘Accounting & Finances’ Category

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Blaming TurboTax?!

In Accounting & Finances,Business,Taxes on October 1, 2012 by Sufen Wang Tagged: ,

Want to Use TurboTax as a Scapegoat?: It Won’t Work

Everybody knows that you shouldn’t blame other people – or things – for your own mistakes. Everybody except Bartlett apparently, who tried to blame TurboTax for her under reported income.

First, Bartlett under reported her taxable pension distributions not by $101, not $10,001, but by $101,998! Then she got caught. Then she went to court and tried to get out of it, by arguing that she used the TurboTax software program to prepare her taxes, so it must be the software’s fault. Well, the court did not buy “that” argument.  Tax Court Judge Julian Jacobs ruled against her, stating that the errors “were not computational…but were the result of Bartlett systematically under reporting her income.” (Bartlett v. Commissioner, T.C., No. 22669-10, T.C. Memo. 2012-254, 9/4/12.)

In other words, Bartlett couldn’t blame her “bad math” on a computer program: the software is only as good as the information entered into it. Garbage in, garbage out….. As a result, Bartlett was hit with a deficiency of $43,668 and an accuracy-related penalty of $8,734.

Maybe Bartlett just wasn’t good with numbers. More likely, she wanted to cheat the system and tried to get smart when she got caught. Either way, the moral of the story is to double-check your numbers if you’re using a tax program – or better yet, just hire a professional tax preparer to file for you.

On the Money, Sufen Wang, Wang Solutions

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Turn Off the TV and Video Games…

In Accounting & Finances,Business,Culture,Education,Entertainment,Family on September 21, 2012 by Sufen Wang Tagged: , , , , , , ,

Kids.gov: Where Your Family Can Have Fun Learning!

Kids these days have it easy. Instead of learning about our government only from boring textbooks and worksheets, now kids get their very own government website. Not surprisingly, it’s called Kids.gov. However, don’t be fooled by the name: there’s something here for everyone.

That’s why the site is divided into three age categories: Kids (K-5), Teens (Grade 6-8), and Grown-Ups (Teachers/Parents). In the Kids’ area, there’s cool stuff like a down loadable “How to Become President of the U.S.” poster. If your six year old is really enthusiastic about becoming president, you can even order a free print copy.

Even better, Benjamin Franklin makes a special guest appearance on the Kids’ website with “Ben’s Guide to U.S. Government for Kids.” Using cartoons to help him, he explains everything from citizenship to how laws are made. Speaking of Founding Fathers, there’s also a “Constitution Day Activity” where you (and your child) can test your historical document trivia skills.

And this government site isn’t only about government. Kids can watch a video on the “Art of Video Games”, learn how to read music, learn how to read with Reading Planet, or create money with “Design Your Own Bill.” And whether your child wants to play a game about Colonial Williamsburg, acid rain, or washing their hands, Kids.gov has it.

The Teen section has many of the same activities, but also more complicated offerings, such as “Albert Einstein and the Theory of Relativity”, “Werner Heisenberg and the Uncertainty Principle”, algebra basics, and “Shakespeare Online.” Later, if your middle school student needs a break from all of that info, have them play “YouAreHere”, a virtual mall game that helps them become better shoppers.

Grown-ups can also learn a lot from Kids.gov. For example, “Distraction.gov” explains why it’s bad to text and drive. Some of the most popular Grown-Up pages are “Talking to Your Kids About Money” and “Helping Your Child Write a Book Report.” And if you’re hungry, check out “Thomas Jefferson – A Day in the Life – Ice Cream at Home Activity.” Although you might want to visit the “Nutrition and Fitness” page after eating.

Instead of letting your child watch TV all day, change things up a little and show them Kids.gov. It’s a safe place to learn and play!

On the Money, Sufen Wang, Wang Solutions

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Gamble Responsibly:

In Accounting & Finances,Business,Culture,Entertainment,Taxes on September 8, 2012 by Sufen Wang Tagged: , , , , , , ,

Your Winnings are Taxable Income

Welcome home from your Summer vacation.  A special welcome home to all of you who spent your vacation in Las Vegas or at any of its alike gambling town.  By now you should know that everything that happens in Vegas, doesn’t stay in Vegas. Hotel bills with hidden fees, a marriage at the Little White Wedding Chapel, and taxable gambling winnings which you must report on your income tax return, will all follow you back home. But hey, you win some, you lose some – and vice versa – you can also deduct your gambling losses.

A “gambling income” is exactly what it sounds like: any money you win from lotteries, raffles, horse races, casinos, etc. Even those lucky $20 grocery store scratch-offs count. And there’s no way to avoid the system. If you pass on the cash and choose a new SUV or 7-day trip to Cancun, you’ll still owe taxes on the fair market value of your prize.

In general, you should record all your gambling winnings on the “Other income” line of Form 1040. So that’s where you’ll put down your $20 pay out from the grocery store scratch-off. But although all gambling winnings are taxable, some require extra paperwork. If you receive a certain amount of winnings or have any that are subject to federal tax withholding, you must get Form W-2G, Certain Gambling Winnings, from the payer. For example, you’ll need Form W-2G if you won $1,200 or more from bingo or slot machines.

Now for something that will make your bank account feel a little better. You can claim your gambling losses (up to the amount of your winnings) on Schedule A, under “Other Miscellaneous Deductions.” So that’s where you would report the $20 bucks you spent on scratch-off lottery tickets before you finally won. If you do decide to deduct, don’t guesstimate; make sure you have documentation of your losses and winnings.  So, folks, save all of your “losing” lottery tickets and scratchers!

To find out more about gambling and taxes, check out IRS Publication 529 on Miscellaneous Deductions. Remember that if Lady Luck is on your side, Uncle Sam will be waiting on your other side.

On the Money, Sufen Wang, Wang Solutions

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On Her Way Up:

In Accounting & Finances,Business,Culture,Human Resources on August 31, 2012 by Sufen Wang Tagged: , , , ,

What You Should Know About Female-Owned Businesses…

It’s well-known that women must deal with a “glass ceiling” in the corporate arena – lower wages and automatic exclusion from the top jobs.  Accordingly, many women are taking a different route: they’re coming through the roof and starting their own businesses.

American Express OPEN realized this and recently conducted a study focusing on women-owned businesses. They wanted to see where there has been improvement and where there are still problems. Here’s what they discovered.

There are 8.3 million women-owned businesses in the United States. That’s a 54% growth in the past 15 years. And that growth is good news for all workers out there, no matter their gender. Women-owned businesses employ 7.7 million people, 40% more than the three largest employers (Wal-Mart, McDonald’s, and IBM) combined.

Female business owners can also hold their own when it comes to making money and the stats prove it. Women-owned businesses now generate revenues of $1.3 trillion, a 58% increase over the last 15 years. In fact, 2% of women-owned businesses bring in more than $1 million in annual revenue, versus 5% of all firms. Moreover, in 7 out of 13 of the most populous industries, women-owned firms are exceeding overall growth. How’s that for surpassing the glass ceiling?

Of course, there’s still a long way to go and not all the numbers are positive. Women own almost 30% of U.S. businesses, but they attract only 5% of the nation’s equity capital. Even worse, women receive 80% less capital than men in terms of first-year funding. And there’s evidence that a glass ceiling still exists when women-owned businesses start to expand: they experience faltering growth at 5-9 employees or $250,000 in earnings.

So how do we ensure that women-owned businesses will be even more successful in the future? We can start by looking to successful female entrepreneurs for advice. Heather Stouffer of Mom Made Foods points out that “Like my own kids, the company needed constant focus, love and nurturing to become a strong company. My advice to entrepreneurs, similar to motherhood, is to know that it’s OK for your company to make some mistakes. It’s the learning from those mistakes and perseverance that are the keys to building your company into the market leader.”

On Women Power, Ms. Sufen Wang, Wang Solutions

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Update Your Job Search Skills:

In Accounting & Finances,Business,Culture,Education,Human Resources on August 24, 2012 by Sufen Wang Tagged: , , , , , , ,

Look Back at the “Summer Job Search Series”

Whether you’re a teen looking for a summer job, or a more “mature” individual who’s ready to leave the cubicle for greener pastures, the job application process remains the same. Accordingly, it’s always useful to take a refresher course in job search basics. Lucky for you, I posted a special Job Search Series last summer and have included some highlights below. Be sure to read the full posts for all the juicy bits.

Work on your resume before anything else. Keep in mind that you need to keep it clean: both in the sense of providing honest information about yourself and also presenting it in a clear, easy-to-read manner. Resumes usually garner only a 15-30 second scan, so you want your potential employer to see the best of you immediately.

Your cover letter is your resume’s best friend. You need a good cover letter if you want a potential employer to even glance at your resume. Keep it short and sweet, and sound both confident and gracious. Most importantly, research the company beforehand so you can show the employer that you’re familiar with their values.

If you passed the previous two tests, you can expect a phone interview. In fact, it’s crucial that you expect the phone call; otherwise, you’ll sound unprepared to the interviewer. Since you and the interviewer can’t see each other, pay attention to the tone and rhythm of the conversation. Speak loud and clear, be enthusiastic, and be articulate in your responses.

Next up is the job interview. Your goal is to convince the interviewer that you are technically qualified for the job and a good fit for the company’s culture. How do you do that? Practice a lot beforehand, arrive on time (and dressed professionally), make eye contact, sit up straight, and be positive. Additionally, know your resume like the back of your hand and be ready to explain anything and everything on it.

The finishing touch on the job application process is the thank you letter. Send a short note thanking the interviewer for their time as soon as possible after the interview. The note (e-mail is okay, but real paper is even better) will show that you’re courteous and set you one step above the candidates who didn’t send thank you letters. Your goal is to make yourself memorable. Remember that and you’ll be hired in no time!

On the Job Search!  Sufen Wang, Wang Solutions


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Take a Vacation from Taxes

In Accounting & Finances,Business,Culture,Entertainment,Family,Taxes on August 20, 2012 by Sufen Wang Tagged: , , , , , ,

Rent Smart and Take a Vacation from Taxes:

Hopefully you were able to sneak away from work this summer and relax with your family at your vacation home: swimming, fishing, trying to keep up with the kids on breath-taking hikes. Unfortunately, it’s time to go home. The kids are tired of wearing sunscreen, and just want to go back to their air-conditioned rooms, and video games. Worse, your boss already sent you a dozen e-mails about what’s due next week. As you’re loading up the car, you wish you could find a renter to put the vacation home to good use for the last few weeks of summer.

Actually, that’s a very good idea. See, if you rent out your vacation home for fewer than 15 days a year, you don’t have to report it to the IRS. And if you don’t report something to the IRS, you don’t have to pay taxes on it. In other words, your rental income for 14 days or less is tax free.

14 is the magic number though (or more specifically, 14 days, 23 hours, 59 minutes, and 59 seconds). Anything over that and you must report the income on Schedule E. So if Joe Schmoe Renter is really enjoying the lake house after two weeks and wants to stay longer, you have to decide if you want to deal with the hassle of kicking him out, or the hassle of filling out Schedule E.

If you choose the latter option, things get a little confusing. You have to start looking at how much you used the vacation home for personal use versus how many days it was occupied by a renter. Then you’ll be able to figure out how much you can deduct, which expenses you can claim, and how you report them. You can check out how to do the math on Publication 527: Residential Rental Property. If only vacation could always be all play and no work… 

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State Sales Tax Holidays

In Accounting & Finances,Business,Culture,Family,Taxes on August 10, 2012 by Sufen Wang Tagged: , , , , , ,

Almost Better than Christmas…

A lot of people accept the fact there’s sales tax on most products and they pay it without complaint. Other people accept the fact that there’s sales tax, and they pay it, but grumble every time they do so. And then there are the people who order everything online so they don’t have to pay sales tax, or if they can’t find an item online, they drive around from city to city, looking for the one with the lowest sales tax rate. And finally, there are the die-hard-no-sales-tax believers, who have moved to Alaska, Delaware, Montana, New Hampshire, or Oregon by now, so they don’t have to worry at all about a state sales tax.  

Now is the perfect time for anyone in those last three groups to take an end-of-summer trip across the United States. Many states have an annual, back-to-school State Sales Tax Holiday where consumers can buy certain items without paying sales tax. For example, from August 10-11 in Georgia, you can purchase school supplies worth up to $20 each, clothing items up to $100 each, and computers worth up to $1,000 each, without having to pay – you guessed it – sales tax.

In Connecticut, you have from August 19-25 to update your wardrobe – tax-free – on any clothing and footwear items under $300 each. While you missed your chance to buy a tax-free Energy Star air conditioner in Texas on Memorial Day weekend, you can still purchase tax-free clothing, backpacks, and school supplies ($100 max. cost each item) from August 17-19. Or you could just head over to Virginia anytime from October 5-8 to get your Energy Star products with no sales tax, at a maximum cost of $2,500.  Louisiana had the best offer in the first days of August with all tangible personal property (pretty much any item you can think of under $2,500) tax-free.

Unfortunately, there seems to be an absence of sales tax holidays on the west coast – perhaps that’s the price of good weather year-round.  However, Georgia just got on the State Sales Tax Holiday bandwagon in 2012, so it’s likely that other states will participate in the near future.  Texas, Connecticut, and the Carolinas have been doing this for over a decade, so if you missed the holiday this year, you can be pretty sure it will be back next year. That gives all of those “frugal” individuals out there time to look for the cheapest deals on flights and hotels. 

Happy Shopping, Sufen Wang, Wang Solutions

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No Need to Outsource…

In Accounting & Finances,Business,Culture,Education,Human Resources on August 6, 2012 by Sufen Wang Tagged: , , , ,

Keep it Local Like GreenJobInterview!

With the political arena heating up, you can’t turn on the TV without hearing a debate about this domestic issue or that foreign policy. One hot topic is outsourcing: should we outsource the jobs overseas, or hire independent contractors to get tasks done, instead of hiring employees? A little BIG company in Costa Mesa, CA came up with a better answer. GreenJobInterview (www.greenjobinterview.com) decided to think inside the box and recently established its own 25-seat call center in its own office, with its own employees as customer service representatives!

GreenJobInterview has only been around since 2007, but it’s already been good for the environment and good for businesses. The company offers a live virtual interviewing platform via the internet for employers across the country and around the world. Instead of flying in potential candidates who, after all, might not be hired, recruiters from companies of all sizes use GreenJobInterview’s technology to conduct interviews with just a few mouse-clicks. And instead of traveling back and forth for a first interview, then a second interview, etc., a job candidate simply has to log on to his/her computer – preferably wearing something dressier than pajamas.

The job candidate sets up a webcam with the help of GreenJobInterview’s customer service representatives, and is trained over the phone on the interviewing process. The recruiter schedules the interview, and presto, recruiter and candidate are talking virtual face-to-virtual face.  No rushing around on planes, trains, and automobiles, and Mother Nature gets to breathe easier as a result.

Earlier this year, Theo Rokos and Greg Rokos, the CEO and President of GreenJobInterview reached an important crossroads in their enterprise: should they expand their customer service department to a full-service,24/7 call center in-house, or outsource it overseas or to another local firm? After much debate, they decided to invest in their own call center, hiring their own employees as customer service representatives for GreenJobInterview.

The best part of this company’s success and expansion is that Greg and Theo chose to invest in-house. Because of their decision, they generated employment in this depressed economy and spent money locally on the workstations, telephone systems, furniture, fixtures,etc. This small BIG decision is practically unheard of nowadays, and should be looked upon as a model to be followed.

Today, 25-seat Call Center, tomorrow 250-seat!  Two Thumbs Up for GreenJobInterview.com.
Eye on GreenJobInterview.com, Sufen Wang, Wang Solutions

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Get a Summer Job!

In Accounting & Finances,Business,Culture,Education,Family,Insurance & Liability on July 31, 2012 by Sufen Wang Tagged: , , , , , , ,

At first, working during the summer sounds awful to most young adults. Then they usually stop complaining when their first paycheck arrives. However, they usually start complaining again once they realize that with income, comes taxes.

Meet Form W-4: Employee’s Withholding Allowance Certificate. This form is used by employers to determine the amount of tax that will be withheld from your paychecks to cover your income tax liability. You, along with everybody else, must fill out a W-4 when you start a new job – even if you work at that job for just one day.

Maybe you were lucky and found work as a waiter. Dealing with customers is difficult, but it also means you can get extra money from tips, and who’s going to say no to free,extra money? Unfortunately, you can’t just pocket your tips and forget about them– all tips you receive are taxable income which you must report. 

Perhaps you decide you want to be your own boss for the summer. You start doing odd jobs around town: babysitting, mowing your friend’s dad’s lawn, walking your neighbor’spoodle up and down the street. Congratulations on being a young entrepreneur,but the earnings you receive from self-employment are still subject to income tax. And if you end up mowing a lot of lawns and make $400 or more from self-employment, you’ll have to pay a self-employment tax.

If you get a job as paperboy (or girl), at least you’ll be done with work by the time most of America wakes up for work. And teens have special rules when it comes to federal taxes. Because newspaper deliverers are generally treated as self-employed, they have to pay the self-employment tax. However, if you’reunder 18, and you don’t meet all of the carrier self-employment conditions, you are exempt from that tax.

Everyone has to start working at some point. If you have nothing do this summer except wait for school to start, then you might as well start mowing some lawns! 

On the Money,

Sufen Wang

Wang Solutions

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Disability Employment App Challenge:

In Accounting & Finances,Business,Culture,Education,Human Resources on July 24, 2012 by Sufen Wang Tagged: , ,

Help People and Win Cash Prizes!

After seeing those government apps last week, do you feel inspired to create your own? Well, now is the perfect time to start working! The Department of Labor is offering $10,000 in CASH prizes for the best apps that help promote the employment of people with disabilities. 

That’s because disabled individuals have a higher unemployment rate and a lower labor force participation rate than everybody else. Your job is to build an app that changes this. Sound like a big project? Luckily, there are specific guidelines to keep you focused.

They want your app to achieve at least one of these goals (but feel free to be an overachiever and accomplish all of these things):

-Promote recruitment resources for employers.

-Develop job-training and skill-building tools for job seekers.

-Facilitate employment-related transportation options.

-Expand web and Information Communication Technology accessibility. 

It would be a good idea to use technology that makes your app accessible for people with disabilities, and to keep in mind that all different kinds of people will be using the app differently. The rest is up to you to be creative. Your submission can be designed for internet browsers, smart phones, feature phones,or as Windows or Macintosh applications. It can be a game, a social network, or anything else you can think of. But get thinking, because you only have until August 23rd to submit!

If your app is good enough, you could win the $5,000 Innovation Award Grand Prize, the $3,000 second place People’s Choice Award(voted on by the public), or the $2,000 third place Above and Beyond Accessibility Award. Of course, it’s nice to win a one-time prize, but it’s even nicer that your tool will work every day to help find people work. For full details on the contest,head over to the Disability Employment App Challenge site.

 
Eye on the Prize!
Sufen Wang
Wang Solutions

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