• Loan Basics

    Are you looking to buy something that might be just out of reach? Is there something on your mind that you need some extra money for, such as a home renovation? If so, you might want to look into the possibility of borrowing money from a bank or other lending institution. This article will go into the loan basics that you should know prior to actually borrowing. loan basics

    Loan Basics

    Loans are a common way of borrowing money for people looking to purchase big-ticket items such as cars or homes (in the form of home mortgages), or to fund things like home improvements or college educations.

    Receiving a Loan

    When receiving a loan whether it be a mortgage or a kitchen remodel loan, a lender will provide you with all of the money that you have been approved for a lump sum. Once you’ve received the money, a monthly payment structure will be negotiated with the lender. Each month, you will pay back a portion of the loan in what is called installments over a fixed period of time until you’ve repaid the entirety of the loan. Lenders refer to this as a long-term loan.

    However, when you are considering a loan, remember that there will be costs involved when you are borrowing money from banks and other lenders. This is how the lender makes money on loaning money to people. After all, it is a business.

    The lender, whether it is a bank or some other entity, will charge an extra amount above the value of the loan. The amount of money that you have borrowed is referred to as the principal of the loan by the bank. Any extra money that the bank charges to lend the money to you is the interest.

    There are a number of factors that decide the amount of interest that a lender will charge you, but there are three main ones. Those factors are:

    • How much money you are borrowing: The interest charged will be a percentage of the amount you borrowed over the life of the loan. Borrowing more money for things such as a pool or more means paying more in interest.
    • The interest rate: The lender will offer an interest rate to be added to the loan. This percentage will also be added to the life of the loan and you will make payments to it each month as you make payments to the principal.
    • The term of the loan: The length of the loan also impacts the amount of interest that you will be charged. Interest is spread over the life of the loan. This means that if your loan has a longer-term, there are more monthly payments for the interest to be applied to. This will also mean a higher interest rate.

    One more thing to remember when considering borrowing money is that the lender may charge other fees beyond interest in return for providing the money to you. These fees vary by lender.

    Bottom Line 

    These are only the loan basics of borrowing money from a lender. The process to acquire a loan isn’t a short one and you will need to watch out for warning signs and learn how to pick the right lender. You can also check with your accountant to ensure that you’re able to afford certain loans. However, the pros at Tax Day Tea Party state that with the basics down, you will be on your way to getting that big purchase that you’ve always wanted. You can reach out to us if you have any further questions. 


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  • Taxes


    Why is Tax Day April 17?

    The regular tax return filing deadline is April 15. However, due to April 15 being on a Sunday and the Washington D.C. Emancipation Day holiday being observed on April 16 instead of April 15, 2018, Tax Day is on the following Tuesday.

    When Can I File My Previous Year or Late Federal Tax Return?

    There is no IRS deadline for overdue previous year tax returns, but in order to claim a tax refund for a certain year, you must file a tax return for that year within 3 years of the original due date. If you wait longer than 3 years, any tax refund is forfeit.

    On the other hand, past due taxes do not disappear. If you owe taxes for a previous tax year, the IRS may charge you late filing and late payment penalties plus interest on taxes owed.

    After April 17, 2018, you can still prepare and efile a 2017 tax return on efile.com until October 15, 2018 (after that date, the IRS will no longer accept 2017 returns electronically, and you will need to paper file your 2017 return).

    If you owe taxes and you file or efile late without getting a tax extension, the IRS will generally charge penalties based on the amount you owe. There are also penalties for paying your taxes late, even if you got an extension. However, the late filing penalties are more severe, so you should try to file on time even if you owe taxes and can’t pay.

    If you owe taxes and are already late, you should file a tax return immediately and explore your options to pay tax.

    If you expect a tax refund and you file late, there is no real penalty other than the effective delay of your refund.

    When Should I File My Amended Tax Return (Tax Amendment)?

    If an amended return results in you owing tax, there is no deadline for the tax amendment. However, if you’re expecting a refund, you must file your return within 3 years of the original tax return deadline in order to claim your refund.

    Tax Tip: Submit your 2017 Tax Return by April 17, 2018 to avoid penalties and interest!

    How Do I Prepare and File My Federal Tax Return?

    Preparing a federal tax return on efile.com is fast and easy. And if you have a simple return, it can even be free! If your return is more complicated, you still get our Lowest Price Guarantee and 5 Pricing Advantages.

    Electronic filing is the safest way to file a tax return, and the fastest way to get your tax refund. And efile.com is the best way to get your biggest tax refund possible. Create a free account and get started on your tax return by clicking the button below, or compare online tax services first.

    Seventy-two (72) hours after your tax return is accepted by the IRS, you can track your tax refund.

    How Do I Prepare and File My State Tax Return?

    On efile.com, you can prepare state tax returns when you prepare your federal tax return. You can then efile your state return(s) together with your federal return or separately.

    Unlike other online tax services, efile.com allows you to prepare as many state returns as you need to for one low price.

    If you already filed federal and you only need to file state returns, you can do that on efile.com, too. Get started by clicking the button below, or find out how to file only state returns.

    After your state return is accepted by your state, you can track your state tax refund


    How Should I File an Amended Tax Return?

    You can prepare an amended tax return for the current tax year on efile.com. The IRS does not accept amendments electronically, so you can print your completed amendment from your efile.com account and then mail it to the IRS. Learn more about preparing and filing a tax amendment.

    Remember, if you amend a federal tax return, this might also affect your state tax return for that year. Please see the website of your state tax agency for information about how they handle tax amendments.

    How Do I File a Previous Year Tax Return?

    Electronic filing is no longer available for Tax Years 2016 and earlier. Download, complete, print out, sign, and mail the tax forms to the IRS for the appropriate Tax Year:

    Tax Year 2016· Tax Year 2015· Tax Year 2014 ·Tax Year 2013

    Tax Year 2012 · Tax Year 2011 · Tax Year 2010 ·Tax Year 2009

    Tax Year 2008 · Tax Year 2007 · Tax Year 2006 · Tax Year 2005 · Tax Year 2004


    Original Article at: www.efile.com


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  • Loans

    Kitchen Remodel Loans

    Do you want to give your kitchen brand new look, but you are stressed because of high costs? Remodeling a kitchen is an exciting experience for all homeowners. However, the cost associated with kitchen remodels is typically high for many people. Kitchen remodels are one of the most expensive home improvement projects that a homeowner can ever undertake. In fact, it is actually the second most expensive home improvement project that you can do. Kitchen remodeling can cost you anywhere from $12,589 to $33,067. The average cost is about $21,668, but the cost can go up to six figures depending on how you want your kitchen to look. However, high costs should not discourage you. There are various financing options that you can choose to help you build your dream kitchen. In this article, we are going to discuss kitchen remodel loans that can help you achieve the kitchen you’ve been wanting.

    Kitchen Remodel Loans

    1. Home Equity Loan

    Did you know that you can have your dream kitchen just by applying for a home equity loan? However, this type of loan usually uses your home as collateral; meaning that you actually risk losing your home if you fail to make payments on time. Home equity loans can be compared to taking a second mortgage. This type of loan has a fixed interest rate, where you will be required to make fixed monthly payments as per the specified terms. The interest paid is tax deductible.Kitchen Remodel Loans

    1. Home Equity Line of Credit

    If you are looking for a cheaper and more efficient way to finance your kitchen remodeling project, then look no further than taking a home equity line of credit. This type of loan is similar to using a credit card. You will use your home as security. Unlike a home equity loan, where you receive a lump sum, a home equity line of credit only allows you to borrow small amounts of money over a certain period of time. Interest will be paid only on the amount that you have borrowed. You need to have good credit history in order to benefit from this loan.

    1. Contractor Financing

    You can also fund your kitchen remodeling project by using contractor financing. The only setback when you choose this option is that you only have one loan to consider. This means that you don’t have an option to compare other competitive payment plans.

    1. Personal Loan

    If you don’t have enough equity to use in your home, then a personal loan is your best option. Personal loans are usually unsecured, meaning that you don’t have to use your house as collateral. The application process is quick, and once the process is completed, the money will be disbursed into your account immediately. They have a fixed interest rate and longer repayment terms. The interest charged will depend on your credit score. For instance, if you have a low credit score, then you will pay a higher interest rate.

    Which Loan Should You Choose?

    Remodeling any part of your home is extremely exciting — especially if it is your kitchen. These different types of kitchen remodel loans will help you take the next steps towards installing a new back splash, replacing your counter tops, etc. Regardless of the option that you choose to fund your project, it is advised that you consider all of the pros and cons of each option to make sure that you’re saving as much as possible.

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  • Uncategorized

    The New 2018 Federal Income Tax Brackets Rates

    It appears the GOP has settled on a final tax bill. While it ain’t over till it’s over, we’re close enough that an article on the new 2018 federal income tax rates makes sense.


    Representing a major tax-overhaul, the bill makes significant changes to the federal income tax brackets and deductions. Let’s look at both, starting with the 2018 income tax brackets.


    2018 Income Tax Brackets

    Rate Individuals Married Filing Jointly
    10% Up to $9,525 Up to $19,050
    12% $9,526 to $38,700 $19,051 to $77,400
     22% 38,701 to $82,500 $77,401 to $165,000
    24% $82,501 to $157,500 $165,001 to $315,000
    32% $157,501 to $200,000 $315,001 to $400,000
    35% $200,001 to $500,000 $400,001 to $600,000
    37% over $500,000 over $600,000

    The number of brackets remained the same at seven. Rates overall, however, have come down. For individuals, these lower rates are scheduled to expire in 2025 unless Congress extends them.

    The top rate will fall from 39.6% to 37%. The bottom rate remains at 10%, but it covers twice the amount of income compared to the previous brackets.


    2018 Standard Deduction and Exemptions

    The new tax rules also make big changes to the standard deduction and exemptions.

    The standard deduction in 2018 as the law currently exists is $13,000 for a couple filing jointly. That number will jump to $24,000. For single filers it jumps from $6,500 to $12,000.

    The personal exemption, currently at $4,150 for 2018, would be repealed. That’s the bad news. The good news the child tax credit gets a big boost.


    Original Article at: Forbes

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