Senior Tax Deductions

Looking for a Credit Card for Christmas Shopping? Before you submit a credit card application, first review the main points which will help you choose the right credit card for your needs.

What Charges You'll Make - If you're going to use the credit card mainly for booking airline reservations and hotels, it might be best for you to get a travel credit card that offers sky miles and hotel points or cashback. If this will be an emergency credit card only, then your main concern may be for a low interest rate credit card with low fees.

When You'll Repay Charges - Will you pay off credit card charges in full every month, or will you carry a balance month to month? If you're going to carry a balance, you want the lowest possible interest rate as well as a low introductory rate. But if you'll payoff balances in full every month, then interest rate really doesn't matter so no annual fee and/or a long grace period would be a bigger concern. If you're going to carry a balance, be concerned about how the finance charge is calculated. The most common method is the Average Daily Balance, which means that the daily balances are added together and then divided by the number of days in the billing cycle. Stay away from credit cards that compute the balance using two billing cycles, as this method costs more money in financing fees.

What Amount You'll Charge - If you're going to use the credit card for all your monthly expenses, then you need a card that has a high credit limit and a high cashback percentage.

More info about Interest Rates, Credit Limits, Incentives, Fees and Penalties

Interest Rates - The interest rate (Annual Percentage Rate) APR can either be a fixed rate or a variable rate that is tied to another financial indicator, most commonly the prime rate. With a fixed rate credit card you know what the interest rate will be every month, whereas a card with a variable rate can fluctuate. Of course, even the interest of a fixed rate card can change based on certain events, such as paying your credit card bill late, exceeding your limit, or simply because the credit card issuer decides to change it after providing you ample advance notice.

Credit Limit - This is the amount of money the credit card company will let you charge to the card. This amount varies depending upon the card offer and your credit history. Be sure to get a credit card with an ample limit, because getting close to your max can hurt your credit score. Just remember that you don't have to max out your limit just because it's available.

Incentives - To compete for and to gain customers, many credit card companies offer rewards. Even if you normally use cash, why not use your credit card and then use the cash to make the payment during the grace period? You still won't pay interest and meanwhile you'll rack-up rewards. A credit card with 5% cashback will earn you $5 for every $100 charged. If your total bills come to $2,000 per month, you'll earn a free $100 every month. Look for a rewards program that you'll use and which offers flexibility, such as cashback or travel.

Fees and Penalties - Compare common charges such as late fees, overlimit fees, balance transfers, cash advances, and for making payments by telephone. Regarding balance transfers, look for credit card offers with no transaction fees and zero percent interest for at least 12 months.

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Senior Tax Deductions

By Credit Federal | Published 01/28/2009

Over 55 years of age? Review these tax deductions...

Make contributions to Retirement Plans:
If you are over 50 years of age, there are higher contribution limits for IRAs, Roth IRAs, and 401(k)s. Check with your accountant and find out how much you can contribute. There are differences among Retirement Plans - meaning you either pay taxes before you contribute and then withdrawals are tax free or taxes must be paid when withdrawals are made.

If you own a business, consider establishing SEP - IRAs, Simple IRAs, Keogh Plans, and solo 401(k) plans to have a higher contribution limit. Whether you work in your own business part time or full time this is a way to get tax deductions like travel expenses, equipment, computers, phone lines, or other business expenses. For a complete list, check with your accountant.

Make sure all Medical Insurance areas like Insurance Premiums, prescription drugs, nursing home care, etc. are discussed with your accountant. This area can have huge expenses for retired people and some are tax deductions. Even gas mileage to get those prescriptions and trips to the doctor should be discussed as tax deductions.

Claim charitable donations: If you have given checks, cash, or property (car, boat, etc.) this year to charities or other organizations you may get a tax deduction. There are special limitations and your tax preparer will know the details.

Claim investing and service fees: There are some fees that are tax deductions such as fees for accounting services, financial advice, investing advice, subscriptions, online services, attorney and accounting fees, safe deposit boxes, etc. Ask your account for input on deducting fees from business expenses.

Home Improvements or the sale of a home: If you lived in your home in for at least 2 years out of 5 years before you sold your home the profit you made on the sale may not be taxable up to a certain amount. There are tax deductions for some home improvements made to help conserve energy - so take advantage of them or check out the details for next tax season.

Review other tax tips

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Senior Tax Deductions - by <a href=http://creditfederal.com>CreditFederal.com</a> Over 55 years of age? Review these tax deductions... Make contributions to Retirement Plans: If you are over 50 years of age, there are higher contribution limits for IRAs, Roth IRAs, and 401(k)s. Check with your accountant and find out how much you can contribute. There are differences among Retirement Plans - meaning you either pay taxes before you contribute and then withdrawals are tax free or taxes must be paid when withdrawals are made. If you own a business, consider establishing SEP - IRAs, Simple IRAs, Keogh Plans, and solo 401(k) plans to have a higher contribution limit. Whether you work in your own business part time or full time this is a way to get tax deductions like travel expenses, equipment, computers, phone lines, or other business expenses. For a complete list, check with your accountant. Make sure all Medical Insurance areas like Insurance Premiums, prescription drugs, nursing home care, etc. are discussed with your accountant. This area can have huge expenses for retired people and some are tax deductions. Even gas mileage to get those prescriptions and trips to the doctor should be discussed as tax deductions. Claim charitable donations: If you have given checks, cash, or property (car, boat, etc.) this year to charities or other organizations you may get a tax deduction. There are special limitations and your tax preparer will know the details. Claim investing and service fees: There are some fees that are tax deductions such as fees for accounting services, financial advice, investing advice, subscriptions, online services, attorney and accounting fees, safe deposit boxes, etc. Ask your account for input on deducting fees from business expenses. Home Improvements or the sale of a home: If you lived in your home in for at least 2 years out of 5 years before you sold your home the profit you made on the sale may not be taxable up to a certain amount. There are tax deductions for some home improvements made to help conserve energy - so take advantage of them or check out the details for next tax season. Review other <a target='_top' style="font-weight: bold; font-style: italic;" href="http://creditfederal.com/article/search?&Query=tax&SearchType=1&Categories=a:1:%7Bi:0;s:1:%220%22;%7D&searchWhat=a:3:%7Bi:0;s:14:%22searchArticles%22;i:1;s:10:%22searchNews%22;i:2;s:11:%22searchBlogs%22;%7D&searchField=a:1:%7Bi:0;s:11:%22searchTitle%22;%7D%22">tax tips</a> This article provided courtesy of <a href=http://creditfederal.com target=_new>www.CreditFederal.com</a>, a personal credit resource of good or bad credit credit cards and loans.

Credit Tip: Need a high limit for Christmas credit card charges? If you have bad credit, consider a personal loan by refinancing your mortgage. Even if you have cash to buy Christmas presents, we recommend using a prepaid card to make purchases because it's safer than carrying cash.