March 30, 2016

The New York State Department of Taxation and Finance, and the New York Department of State’s Division of Consumer Protection, are highlighting five ways that the seven million New Yorkers who receive tax refunds can make smart decisions with their money.

• Save–Use your tax refund to bolster your emergency savings. This could help you avoid credit card debt and resulting interest payments if something unforeseen happens. Financial experts suggest having at least three months’ worth of savings to cover all your fixed expenses, such as mortgage or rent, utilities, food, and insurance.
• Maintenance–If you’ve never had the extra money to build that new deck or put in those new kitchen cabinets that you’ve always wanted, now might be the time. In addition to improving the look and functionality—and possibly increasing the overall value—of your home, many home improvements qualify for tax benefits as well. Any project considered a capital improvement is exempt from sales tax.
• Avoid debt–Your tax refund can put a sizable dent in—or even erase—your credit card debt. If you pay it off now, you won’t continue to pay interest charges. Your tax refund can also help to pay off your student loans earlier.
• Retirement planning–Investing your tax refund now for the future is smart financial planning. There are many ways to save for retirement, including adding your refund money to your 401(k). If your employer doesn’t offer a 401(k) option, then consider opening an IRA. The sooner you start saving for retirement, the more time your money has to grow.
• Training–To earn that promotion or switch career paths you often need additional training and education. You can spend your tax refund on college courses to help you in your career. You could also invest in a 529 College Savings Plan to help pay for your child’s future education.

“There’s no harm in treating yourself, of course—you’ve earned it!” says New York State Commissioner of Taxation and Finance Jerry Boone. “But making a smart decision now can help pave the way to a better financial situation down the road.”

“Foresight and education are keys to being a smart consumer,” said Acting Secretary of State Rossana Rosado. “These suggestions provide New Yorkers with some of the options available to help them secure a better financial future.”

For more information contact Tax On Wheels, LLC at 803 732-4288

The 2012 tax season has begun and the South Carolina Department of Revenue (SCDOR) is urging taxpayers to file their income tax returns electronically.

South Carolina is a national leader in the percentage of its taxpayers that file electronically. Of the 2.1 million returns processed in 2011, 1,692,965 were filed electronically with taxpayers receiving an average refund of $837.

Electronic filers may receive a refund in as little as 10 days, as compared to those who file a paper return, which could take an average of three weeks to receive a refund.

In South Carolina, taxpayers can file their state income tax return electronically by purchasing and using commercial tax preparation software, having a professional tax preparer file for them, or using Free File through SCDOR’s website.

Qualified SC taxpayers can take advantage of free tax preparation services available through Free File in order to electronically prepare and file their state and federal income tax returns simultaneously for free. Since its inception in 2003, the Free File Alliance has offered 70 percent of taxpayers free access to leading commercial tax preparation software. While users benefit from Free File’s automatic check for accuracy, the program is also user-friendly, completely paperless, safe and secure. Taxpayers with an income of $57,000 or less can visit www.sctax.org and click on the Free File icon to e-file their return with one of the six vendors offered.

New in 2012, taxpayers receiving a state income tax refund will be mailed a prepaid debit card containing the amount of their refund, in place of a paper check. In addition, taxpayers have the option to choose direct deposit or to receive a paper check if they do not wish to receive a debit card. Direct deposit is the refund method preferred by SCDOR.

To learn more about filing your taxes electronically, or to check on the status of your refund, visit www.sctax.org or call the individual income tax section of SCDOR at (803) 898-5709.

You may call Tax On Wheels, LLC at 803 732-4288 if you need assistance with state or federal income tax issues.

After posting our apparent scoop about the South Carolina state income tax refund prepaid Visa debit card program yesterday we received the following:

Columbia, SC — The South Carolina Department of Revenue (SCDOR) today announced that taxpayers will soon be offered a new method for receiving their individual income tax refunds.

For the 2012 individual income tax filing season, the SCDOR, working with Bank of America Merrill Lynch and Visa^®, will provide taxpayers with an income tax refund prepaid debit card in place of a paper check. The SCDOR Income Tax Refund Prepaid Debit Card is intended to eventually replace the printing and mailing of paper checks, saving the state of South Carolina significant costs in tax dollars and processing time.

South Carolina taxpayers will still have the option to designate direct deposit or to receive a paper check on their income tax return if they do not prefer a debit card.

“Through the SCDOR Income Tax Refund Prepaid Debit Card and direct deposit options, SCDOR aims to expedite the process in which individuals receive their income tax refunds. It is our goal to make this method as cost-effective and easy to use as possible for the South Carolina taxpayers,” stated Director Jim Etter.

With the SCDOR Income Tax Refund Prepaid Debit Card, the refund is delivered electronically to a unique prepaid debit card account created for the taxpayer. Card recipients may transfer the refund amount into their personal bank account just as they would deposit a paper check. The card is a particularly convenient option for taxpayers who do not have a traditional bank account.

Cardholders can conduct a variety of transactions without fees at Bank of America ATMs, online, over the phone and everywhere Visa debit cards are accepted. Customer service is available from Bank of America 24 hours a day, seven days a week. If a card is lost or stolen, it will be replaced immediately at no charge, and cardholders are protected against any unauthorized or fraudulent charges.