Editor: Crass Cash

You have a will in the event that you die.  Great!

You have a retirement account with designated beneficiaries in case you die.  Great!

You have life insurance in the event that you die.  Great

Now what if they conflict and one says one thing and the other another?  Well if you the designated beneficiaries conflict with wants in the will and with wants in the insurance and retirement accounts, then (drum roll please)...the designated beneficiaries will end up getting the individual assets instead of what it says in your will.  

If you have really old retirement and insurance accounts this could cause some serious problems.  Have you been divorced and not changed them?  Have you had a falling out with a relative?  Did one of the beneficiaries die?

You need to go through each asset and make sure that it is consistent with whats in your will.  If you don't you could leave a lot of heart-ache and fighting for your family in the unfortunate event of your death.  

Editor: Crass Cash

Always, always, always review your credit card statements!  With today's automatic payment systems it's easy to just receive a bill and pay it regardless of whatever it says.  Hell we even have now where the credit card company will just deduct the money directly out of your checking account.  You don't even need to see the bill!  This is very worrisome.  

You need to always check the bill.  Perfect example is today when I reviewed my AMEX bill and noticed that the Wall St Journal charged my card for the entire year subscription.  They had me setup as automatic renewal, so I was never contacted about it.  I receive this through my work also, so there is no need to pay for it twice.  I immediately called them and cancelled it.  It ended up saving me $265.  

Also, you need to look for fraudulent charges.  Most thieves will steal your identity and run up huge charges.  But some are getting smarter.  They'll look at your bill and see where you're spending money and then go to those same stores and charge smaller amounts that you would never even think about.  This can go on for years without it ever being realized.  

If there's ever a charge that you don't recognize than don't hesitate to call that company to find out what it was for!  

Editor: IRS Newsletter

Are you, your spouse or a dependent heading off to college? If so, here’s a quick tip from the IRS: some of the costs you pay for higher education can save you money at tax time. Here are several important facts you should know about education tax credits:   

• American Opportunity Tax Credit.  The AOTC can be up to $2,500 annually for an eligible student. This credit applies for the first four years of higher education. Forty percent of the AOTC is refundable. That means that you may be able to get up to $1,000 of the credit as a refund, even if you don’t owe any taxes.
• Lifetime Learning Credit.  With the LLC, you may be able to claim a tax credit of up to $2,000 on your federal tax return. There is no limit on the number of years you can claim this credit for an eligible student.
• One credit per student.  You can claim only one type of education credit per student on your federal tax return each year. If more than one student qualifies for a credit in the same year, you can claim a different credit for each student.  For example, you can claim the AOTC for one student and claim the LLC for the other student.
• Qualified expenses.  You may include qualified expenses to figure your credit.  This may include amounts you pay for tuition, fees and other related expenses for an eligible student. Refer to IRS.gov for more about the additional rules that apply to each credit.
• Eligible educational institutions.  Eligible schools are those that offer education beyond high school. This includes most colleges and universities. Vocational schools or other postsecondary schools may also qualify.
• Form 1098-T.  In most cases, you should receive Form 1098-T, Tuition Statement, from your school. This form reports your qualified expenses to the IRS and to you. You may notice that the amount shown on the form is different than the amount you actually paid. That’s because some of your related costs may not appear on Form 1098-T. For example, the cost of your textbooks may not appear on the form, but you still may be able to claim your textbook costs as part of the credit. Remember, you can only claim an education credit for the qualified expenses that you paid in that same tax year.
• Nonresident alien.  If you are in the U.S. on an F-1 student visa, you usually file your federal tax return as a nonresident alien. You can’t claim an education credit if you were a nonresident alien for any part of the tax year unless you elect to be treated as a resident alien for federal tax purposes. To learn more about these rules see Publication 519, U.S. Tax Guide for Aliens.
• Income limits. These credits are subject to income limitations and may be reduced or eliminated, based on your income.