Wasting Money

• Little splurges are the killers: Americans talk a good game about saving and paying off debt, but they sabotage their efforts by splurging on meals out and other little luxuries, a survey says.
  
  Americans consider more luxuries to be necessities than we did 10 years ago, yet most of us consider ourselves to be frugal or thrifty. More likely, we like to get a good deal on something that's a waste of money, being "penny wise and pound foolish".
  
  The next article focuses on how we waste money on our 2nd largest purchase.
  
  
• The real reason you're broke: For a huge number of troubled debtors, it all began with a car. Too much car, financed too long, traded too soon.
  
  Yes, cars can be a big waste of money. But the top money-waster is that big house.
  A good rule of thumb I saw recently was to have a mortgage no bigger than twice your income.
  
  

IRS Free File

I'm still waiting for all my tax documents, but for those of you who are ready to file, you may qualify for the IRS Free File program. If you have an Adjusted Gross Income of $52,000 or less, you qualify.

Season's Greetings (Tax Season, That Is!)

I hope everyone had a Merry Christmas (or whatever else you celebrated this December) and a Happy New Year. Now it's time to start thinking about taxes, if you haven't already. Bankrate.com has an online tax guide with daily tax tips, information and this section on tax software.

I've recently examined two of the major tax software providers, H&R Block and TurboTax. H&R Block has an estimator program that gives you a ballpark figure of how much you owe or the size of your interest-free loan to the IRS--whoops, I mean your refund. TurboTax has a feature where you can try out the online version of the software for free (without entering any credit card information). You only have to pay if you want to file your completed return through them. But otherwise, it is a full version. They have several tax programs geared towards investors, business owners, or people who just need the basic software, as does H&R Block. The packages from both companies vary in price, starting at $9.95 for H&R Block and $14.95 for TurboTax (with additional charges for state e-filing for both companies).

Depending on your income (AGI of $52,000 or less) or military service, however, you may be able to file for free through the Free File Alliance. The qualification criteria should be released Jan. 16, according to the IRS. You can go here to see if you qualify: Free File Home - Your Link to Free Online Filing (irs.gov)

On a lighter note, bribes, stolen property, illegal drug sales, and other ill-gotten gains are still taxable income.