Learn how to file your FBAR

An FBAR is a Report of Foreign Bank and Financial Accounts. Any United States resident, who has signature authority over any financial account, holding more than $10,000 in any foreign country at any time, is required to file for FBAR.

You need to get hold of Form 1040, Form 1041, Form 1065 and Form 1120. Boxes 7a and 7b are to be filled in on Form 1040 Schedule B. Box 3 on Form 1041 “Other Information” section has to be ticked. Similarly, Box 10 on Form 1065 Schedule B and Boxes 6a and 6b on Form 1120 Schedule N are to be filled by you. In addition to these, you are also required to fill in Form TD F 90-22.1. You can get this in a PDF format and later on take a copy while filing.

In case you have elderly members in your family who need to file FBAR, you can have the power of attorney to take up these activities on their behalf.

Is paying personal income tax essential

Personal income tax refers to the tax that you pay to the government from what you earn. This kind of tax is paid solely on the basis of your earnings and may increase or decrease, depending on your income. Payment of personal income tax is mostly essential in most countries and avoiding it is considered a crime.

You can receive a refund in the personal income tax if you have paid more then required. These refunds are paid by the government. Those who have not paid are considered as the tax payers and if they miss the dead for the payment they might have to pay a fine.
However if you do not earn enough to pay taxes then you are probably exempted from paying personal income tax. But you will have to pay once your income goes up.

You should always pay your taxes on time as this money is used by the government for the overall development of the country. All social work, buildings and other services for the citizens are carried out with this money.

Tips to minimize taxes

Do you want to minimize your income tax? Well, if your answer is in the affirmative you have to understand that you should always adhere to legal methods to lower your income tax. Lowering of income tax is known as tax avoidance. One of the best ways to lower you income tax is exemption. It basically means automatic lower of taxable income. IRS gives this exemption to encourage good tax behavior. The commonest tax exemption is given to dependents.

A tax credit is also a very good way to minimize your income tax. Instead of reducing your taxable income, tax credit lowers the actual tax liability. The most common kind of tax credit is for adopting or supporting children. If you are above 24 and have a job with low to medium income, you are eligible to get earned income credit. You can also find ways to reduce your inheritance tax, investment tax, estate tax and self employment tax.

Learn what a credit debt management plan is

Debt management has emerged as one of the primary issues in the context of modern economy. Many people are not well acquainted with credit debt management plan, and the various methods of how to go about it. Basically, it is an excellent tool for the elimination of debt. But you need to consult an authentic debt management planning agency to sort out your debt issues. For obvious reasons, you will have to shell out money as service charge.

A proposal letter will be sent to a creditor by the debt management service, so as to ask for their approval regarding enrolment of their accounts in the management plan. Then, a valuation of your assets will be taken into consideration, including living expense, net income, list of creditors, repayment dates and so on. This forms the systematic approach towards formation of the management plan. Generally, it takes about 3 to 5 years for successful implementation of credit debt management plan.

Learn how to calculate your credit score

Are you wondering how to find out the fair interest rates and calculate your credit score? Then, the credit score calculator is all that you need. The tool will help you to know about your financial state and whether it will be wise to request for a new credit.

You will need to find out the age of your account and also specify the number of accounts you have at present. This will help to determine the credit history’s age. You will also need to enlist any bankruptcy or other credit disputes, if you have any. Now, add all your credit limits as well as balance of all the credit cards to find the credit utilization along with payment history.

Now you can evaluate all the data on debts, account age, type of account and payment history to estimate your credit score. You can increase the score by checking the breakdown and the approximate FICO score.

Protect yourself from credit card frauds

Credit card frauds are on a high these days. The article below thus provides you with some valuable tips to prevent yourself from any credit card scams. Firstly, always keep a watch on the card while using it and get it back quickly as soon as the transaction ends because copying the card details takes very little time.

Then, make sure that the companies or websites you are transacting with are accredited and legitimate ones. Always remember that reputed agencies won’t usually ask your card number over the phone. Never entertain unknown e-mail messages which request you for the credit card info via email as these are usually scams.

Do not write the PIN digits anywhere in the card and always keep the card covered so that nobody can copy the card data with the high end technological means like mobile phone camera. Lastly, make sure to keep a record of your card numbers, expiration dates and all the possible contact info of the card issuer which will help to contact them in case of emergencies.