e-filing Your Tax

The advantages to e-filing include speedy tax refunds and increased accuracy. Last year was the first time more than half of all taxpayers e-filed, according to the Internal Revenue Service. That was an 11% jump. It's, therefore, fair to assume most Americans will file their taxes online this year. Of about 68 million e-filers of last year, 48 million had a tax professional do it and 17 million did it themselves using computer software, such as TurboTax or TaxACT. The rest used TeleFile, a method that isn't available this year.

The IRS has changed the rules a bit this year. What once was free now may cost you. Only taxpayers with an adjusted gross income of $50,000 or less are eligible to prepare their taxes and e-file free through the IRS Web site. But the software companies TurboTax, TaxCut and TaxACT are offering other deals. If you buy their software through their Web sites, you can e-file free. TaxACT is even offering a free version of its tax-preparation software. But restrictions may apply. These "e-file free" offers may be limited to people who live in specific states and have specific income levels. So, it might be better to go directly to the software company's Web site. Or it might be better to buy tax-preparation software through a link on the IRS Web site, www.irs.gov.

The main advantage of using such tax software is you don't have to type in the same information multiple times. Once your federal tax return is done, completing your state return will require answering only 5 or 6 more questions. There aren't a whole lot of worthy choices for tax-preparation software, but one isn't necessarily as good as another. Some programs are simpler than others to navigate. Many say TurboTax is the easiest, followed by TaxCut and TaxACT.

Then there're questions of integration, if you are using other softwares to manage your money matters. The integration can save you a lot of typing. TurboTax, for instance, can import data from Quicken's personal finance software. TaxCut, on the other hand, works with Microsoft Money.

For more information on e-filing, check out IRS's efile page.

Have Your Own Webpage

Google has launched a new product - Google Page Creator, a free, easy, browser-based tool for creating attractive web pages. Its interface enables users to edit and create pages just as they appear online, without knowledge of HTML or other computer programming languages. Combined with a simple one-step publishing process, users can create attractive, functional web pages in minutes - hosted by Google for free.

Google Page Creator is a web-based tool - that means no download is necessary. Users need only visit THIS LINK, and sign in using their Gmail account to begin creating and publishing their own web pages.

Google Page Creator will be available on Google Labs, but the search giant has decided to limit the number of page sign-ups in order to provide users with an optimal publishing experience. The company holds that due to extraordinary demand, it recently reached that limit so they've temporarily paused additional sign-ups. Users may check the Google Page Creator website regularly for updates or submit their email address to a wait list, and Google will contact them when they have the capacity to support additional users.

Identity Theft of Cars

If you have not yet got enough reasons to get concerned about the identity theft problem, well, here is another already in your basket -- the identity theft ...of your car.

In what is now termed by police department as vehicle identification number (VIN) cloning, thieves replace a stolen car ID number with a legitimate number from another vehicle of the same make and model. The "cloned" car then ends up in an unsuspecting used-car lots. If you still think these are too much of raising an alarm, consider this report from Carfax which estimates that 225,000 of the 1.5 million stolen vehicles last year were tagged with cloned VINs.

How could you avoid this? Before you decide to purchase a used car, conduct a title search, which will detect cars with the same number registered to different people.

Car Abbreviations

Planning to buy a new fancy car? Well, before you do that you need an orientation so that you can understand what the dealers are referring to. Automotive manuals are now peppered with lots of acronyms and abbreviations reflecting the fact that cars are getting more and more complex as years are passing by. Here, we compile a glossary of such technical jargons:

ABS: Antilock braking system. This enables drivers to retain steering control during emergency stops by automatically "pumping" a car's brakes.

AWD: An 'All Whell Drive' system sends power to all 4 wheels, providing more traction on slippery or uneven surfaces than front wheel drive (FWD) or rear wheel drive (RWD). AWD is also referred to as four whell drive (4WD).

CVT: Typically using a belt instead of conventional gears, a 'Continuously Variable Transmission' is a smoother-operating and more fuel-efficient type of automatic transmission.

EBD: 'Electronic Brake-force Distribution' improves braking performance by varying pressure between the front and rear wheels according to the car's load and speed.

ESP: 'Electronic Stability Program', a skid-control system, determines a driver's intended direction based on steering and braking inputs and keeps the car on track.

LATCH: 'Lower Anchors and Tethers for CHildren' refers to a system in new cars for securing childrens' car seats.

OBDII: 'OnBoard Dagnostics' system, phase two, found in cars made in 1996 and later, sets off the "check engine" light if the engine or fuel system emits too much pollution.

PCM: The 'Power train Control Module' is a computer that manages the engine, transmission, and emissions system to maximize fuel economy and performance and to minimize emissions.

SRS: 'Supplemental Restraint System' refers to air bags, which enhance the effectiveness of the most important safety feature in cars: seat belts.

TCS: A 'Traction Control System' helps a car's wheels get a grip on a slippery surface when the driver accelerates. It's sometimes called ASR, or 'Acceleration Slip Regulation'.

Tax 2005 Forms

Tax time is here again. There are 3 kinds of Federal Tax forms: 1040EZ, 1040A, 1040. Which one should you use?

If you can not decide you can always use the most general purpose one: 1040. On the other hand, you must use it if you (i) claim numerous tax credits, (ii) own rental property, (iii) Are self-employed (iv) have sold a stock or bond in the past year.

If your case is not so general, you may as well use one of the other two kinds depending on the following:

Conditions for both 1040EZ and 19040A: (i) Your adjusted gross income is less than $50,000 (ii) You are not itemizing your deductions.

You must choose, 1040A, if: You have income only from wages, salaries, tips, taxable scholarships or fellowship grants, pensions or annuities, taxable Social Security benefits, withdrawals from your IRA, unemployment compensations, interest and dividends.

Or, select the easiest one, 1040EZ: If (i) You are single or married (filing jointly); No dependents. (ii) You have income only from wages, salaries, tips, taxable scholarships or fellowship grants, unemployment compensation, dividends from the Alaska Permanent Fund and qualified state tuition program earnings. (iii) Your income does not include more than $1,500 of taxable interest income from investments and other financial accounts. (iv) You are not receiving any advance earned income credit. (find if you have any at Box 9 on your W-2 form) (v) You are not claiming any adjustments to income of tax credits. Such adjustments to income would include deducting student loan interest, IRA contributions or childcare expenses.

Testing Technology Literacy

In this modern world "technology literacy" is something that, everyone agrees, is important to have. But it is an ability that is difficult to measure. School students look tech-savvy as they regularly download music or use instant messaging. These interest-driven activities may not actually amount to much if they lack knowledge or skill of making good use of the endless stream of information that computers bring to their fingertips.

With this in mind the nonprofit Educational Testing Service (ETS) has introduced a new test called ICT (Information and Communication Technology). ETS also designs and administers the SAT, but says the ICT isn't designed as an admissions test. Rather, the goal is to show schools whether their students know how to use technology effectively and responsibly.

The ICT Literacy Assessment will touch on traditional skills, such as analytical reading and math, but with a technological twist. Test-takers, for instance, may be asked to query a database, compose an e-mail based on their research, or seek information on the Internet and decide how reliable it is.

One version of ICT test is already being used by some colleges. Last Friday, the nonprofit Educational Testing Service announced details of a new version that some high school and first- and second-year college students will begin taking this spring. The new "core" version that will be sold to high schools can be taken in a school computer lab over about 75 minutes and consists of 14 short tasks, lasting three to five minutes each, and one longer task of about 15 minutes. Students will receive an individual score on a point scale of 400 to 700, and schools will get reports showing how students fare in seven core skills: defining, accessing, managing, integrating, evaluating, creating and communicating information.

Car Warranty & Dealer

While buying a new car, some dealers might tell you that you have to get the recommended service items regularly done 'at their shop' to keep your warranty in effect. The subtly-forwarded incorrect part of this statement is 'at their shop'.

You do not need to follow this, if you do not want. You can get service done anywhere; you can even do it yourself. Just keep records and receipts, should any questions arise over a warranty claim. The part of the statement which holds true and you must keep in mind is that: If you do not follow the scheduled maintenance like oil changes and filters at recommended intervals, that can void a warranty.

Auto Insurance

If you go to the street and ask people what they understand by the terms 'comprehensive' or 'collision' coverage, you will see lot of them do not really know what these are, even though they go on paying their auto insurance premiums year after year. So, our today's topic is auto insurance:

Collision coverage: your insurer will pay for repairs to your car after a smashup if it was your fault or you can't collect from the driver who caused the accident.
Comprehensive coverage: protects you against other losses -- for example, if your car is stolen or vandalized, is hit by falling objects, catches fire or is damaged in a flood. In addition, the comprehensive covers loss of items installed in your car, such as a radio, but usually not anything that you are transporting in it (such losses are covered by your homeowner or tenant policy, as long as your car was locked when the theft occurred).

These two types of optional coverages may cause significant differences in premiums for various makes and models of cars. Their premiums are cheaper on cars that are harder to damage and easier to repair. Cars that are easily damaged in accidents or are popular for joy riders or are a valuable source of spare parts have more expensive premiums.

You may remember the following 3 tips while buying your auto insurance:
(i) Three Year Rule: In case of any mishaps, your insurer will reimburse you only upto your car's current retail value. This is very important and that's why you may consider buying both coverages when your car is less than three years old.
(ii) Largest deductible Rule: 'Deductible' is the amount you must pay before the insurer starts reimbursing you. Car owners typically accept deductibles of $250 but $500 might be better because that may reduce your premium by as much as 10%.
(iii) Too Old Car: If your car is more than 5 to 7 years old, or is worth less than $1,500, you may drop your collision and comprehensive insurance altogether and save money.

What is HSA?

Health savings accounts, or HSA, let people put aside money tax-free that can be used to pay health expenses. The accounts must be paired with high-deductible health insurance policies.

HSAs were created in 2003. To qualify for tax breaks under the current rules, the insurance deductible must be at least $1,050 for an individual, or $2,100 for a family. Users of HSAs pay no tax on the money they deposit into the accounts or on any investment gains. Withdrawals also are tax-free if they are used to cover medical expenses.

They can be used for any expense that the Internal Revenue Service allows as a qualified medical expense. The money carries over to the next year and continue to accrue interest. If you die, the remaining funds pass to your heir.

In his State of the Union address on January 31st, President Bush urged Congress to expand health savings accounts. He wants to increase the tax breaks to make the program more attractive. For example, he would let HSA users pay their insurance premiums with money in their accounts. That would boost the tax advantage because, under current rules, many people pay premiums with after-tax dollars. In addition, Bush wants to increase the amount of money that one could deposit each year in an HSA.

A number of health care advocates and labor groups point out that Bush's plan does little to address the problem of making medical care more affordable for the unemployed or lower-income people who can't afford a high deductible. On the other hand, many employers, health insurers and financial institutions support HSAs, saying they give individuals more control over their own healthcare dollars.

The White House estimates that 3 million Americans now have HSAs. But if Congress were to expand the tax breaks, that figure could rise to 21 million by 2010.

Avoid Remodeling Ripoff

After you buy your new home, you may want to further invest in it by completing some remodeling projects to increase the value. If the projects are extensive enough, you may decide to hire a professional to do the work. When hiring someone to work on your home, it is important that you make your selection carefully and choose someone whom you know is reliable.

According to the Federal Trade Commission, there are some telltale signs for spotting an unreliable contractor. A less than reputable professional will probably do things such as:

• Ask for payment only in cash
• Pressure you into making an immediate decision
• Ask you to pay un full for work that has not been done
• Offer exceptionally long guarantees
• Use materials that "Just happen to be leftover"
• Ask you to obtain the required work permits
• Not have a business listing in the phonebook
• Suggest that you borrow money from a lender the contractor knows, which could make you the target of a home improvement loan scam.

LiveInUSA: One Year

Today is LiveInUSA's first birthday!

We thank all our readers who supported us continuously in our year long journey. We hope we'll be able to serve quality information to our readers in years to come.

Savings for College

Many people think that the more you save for your kid's college education, the less likely your child will receive any financial aid. That's simply not true. A big chunk of financial assistance actually comes in the form of loans. So, the more you save the less likely you'll need to borrow.

As long as you save wisely, you can minimize any reduction in your total aid package. One important key is to save in your name, not your child's. The aid formulas count only 5.6% of parental assets vs. as much as 35% of money saved in the student's name. This makes tax-advantaged programs like Coverdell ESA and 529 college savings plan especially useful. Federal Aid Rules regard those accounts as parental assets.

If you have already set up a college fund in your kids' name, you may consider spending the money on your child's behalf well before college (of course, if it's not a very high amount). For example, you may spend the money for SAT preparation or music lessons. At the same time you may deposit a comparable amount in one of those tax-saving programs in your name. The 529 plan is a great savings program with tax advantage.

New Computer Worm!

In a Microsoft security advisory released Monday, the company has issued a warning to Windows users of a file-trashing worm that has been circulating via e-mail for several weeks. The worm, which is programmed to destroy a wide variety of files on the 3rd day of every month, has been circulating since mid-January. The worm is estimated to have infected between 250,000 and 300,000 systems worldwide.

Microsoft calls it Win32/Mywife.E@mm, but it is also known as Nyxem, Blackdoom, W32.Blackmal.E@mm, Tearec, and Kama Sutra. Although the number of systems infected so far is not large as compared to millions of internet users worldwide, it can spread quickly if all of us do not take proper action.

For a PC to become infected by Nyxem, a user must first click on a PIF (Program Information File which are data files used to help programs written for Microsoft's pre-Windows DOS run in a Windows environment) file attached to an e-mail, which is typically blocked by corporate antivirus software, according to Cooper. Nyxem does not rely on a Windows vulnerability, but instead uses "social engineering" techniques to spread, luring users to click on files with names like "Miss Lebanon 2006" or "School girl fantasies gone bad".

For those who are infected, Friday, February 3, will be a day to watch for. On that day the worm will overwrite a wide range of files, including Word documents, Excel spreadsheets, PowerPoint presentations, and .pdf files, replacing their contents with the phrase: "DATA Error [47 0F 94 93 F4 K5]," Microsoft said.

Microsoft's advisory tells customers to use up-to-date antivirus software, most of which can detect the Nyxem infection, and to use caution before opening unknown e-mail attachments.