Chicago Bankruptcy Lawyer Blog

It's that time of year again - and I'm not talking about doing your taxes.

Spring starts tomorrow, and it's the perfect excuse to get organized. If you've been neglecting your family budget, your growing debt, or your spending habits, it's time for a financial version of spring cleaning. Even if you've gotten organized in the past, it's good to give your finances an annual tune-up, explain Chicago bankruptcy attorneys. Here's how.

Continue reading "How Organizing Finances Can Help Chicago Consumers Save Money" »

This year's average tax refund is more than $3,000 - but there may be a way to stretch it even farther.

With gas and grocery prices going up, it would be easy to allow that money to simply disappear, say Chicago bankruptcy attorneys. A couple bills here, a little shopping splurge there, some unexpected car repairs, and - poof - your bank account is back to where it was before. But there's a way to keep your refund alive long after you deposit it. How? By putting it to work for your future.

Continue reading "Chicago Taxpayers Find Secret to Getting Bigger Refund" »

Uncle Sam is extending your tax deadline - but you might prefer to say no thank-you, say Chicago bankruptcy lawyers.

Because of a Washington D.C. holiday on April 15, the government is giving taxpayers until the following Monday - April 18 - to mail in our tax returns. But there's no reason to wait until the 15th or the 18th. The IRS officially began accepting returns this week - even for folks who plan to itemize deductions (officials previously told itemizers to hold off until new tax laws went into effect). And the sooner you file your taxes, the sooner you may be able to get that tax refund - and reap the benefits.

Continue reading "Chicago Taxpayers See Benefits of Filing Tax Return Early" »

It looks like taxpayers might already have a use for that extra money from President Obama's payroll tax cut - filling up the gas tank.

Legislators hoped that the tax cut - which gives many Americans the equivalent of a 2 percent raise by shaving the amount of paycheck withholdings for Social Security from 6.2 to 4.2 percent - would boost the economy. But with today's gas prices almost 40 cents higher per gallon than they were a year ago, it looks like the savings will be boosting the bottom line of oil companies instead, say Chicago bankruptcy attorneys.

Continue reading "Rising Gas Prices Put Financial Burden on Struggling Consumers" »

As if it isn't hard enough to afford your federal income taxes come April, now Chicago residents have to worry about a state income tax hike as well.

Illinois - like California and a handful of other states - is facing a major budget shortfall. To cover it, lawmakers agreed to raise the personal income tax from 3 percent to 5 percent, at least temporarily. On the one hand, it's probably long overdue - the state of Illinois has not raised income taxes since 1989. On the other hand, it's not the best timing for thousands of Chicago residents currently struggling with unmanageable debts.

Continue reading "How Illinois Income Tax Hike Will Affect Chicago Residents" »

If you're like most folks, you like to dream of all the things you could afford if you finally got that pay raise. But what if I told you that you've already gotten your raise - and you're blowing it?

Thanks to a tax bill signed by President Obama in December, the majority of Americans will pony up just 4.2 percent of our paychecks for Social Security instead of the typical 6.2 percent. In other words, most of us will get a paycheck boost of $1,000 on average this year. But since that amount is spread over a year's worth of paychecks, it will likely go unnoticed by many wage earners - and therefore won't be used as efficiently as it could be, say Chicago bankruptcy attorneys.

Continue reading "How Maximizing Tax Cut Can Help Taxpayers Lower Debt" »

You've heard of spring cleaning, but did you know switching to winter cleaning can save you some money?

With just days to go until the New Year, there's still time to make some charitable donations that can increase the size of the tax refund you receive next year. If you're like most Chicago residents, you're probably feeling a little tapped out financially. But you can still deduct donations from your taxes, even if they aren't monetary.

Continue reading "Clearing the Clutter Helps Chicago Savers Get Organized for 2011" »

Between the red kettle outside the grocery store, mall clerks asking if you want to give a dollar to fill-in-the-blank cause and the seemingly endless requests for donations in your mailbox, Americans are being faced with charity choices every day.

You might think that we'd ignore them, what with most of us struggling to pay off our own debts and make the house payment. But we're more giving than we realize, say Chicago bankruptcy attorneys. It turns out that nearly two-thirds of Americans say they plan to donate to charity this year, regardless of the economy. And fortunately those donations can do more than make us feel warm and fuzzy inside - they can also help our finances.

Continue reading "Chicago Residents Still Donate to Charity When In Debt" »

It looks like American workers could be getting a raise next year, albeit a small one.

If the tax agreement between President Obama and legislators passes, one of the provisions will reduce the Social Security payroll tax rate from 6.2 percent to 4.2 percent. For someone making $60,000 a year, that's an extra $1,200 in annual take home pay - or the equivalent of another $25 a week. It might not seem like much, but if you're looking for ways to make ends meet, any little bit can help, say Chicago bankruptcy attorneys.

Continue reading "How Bush Tax Cut Extension Could Affect Chicago Workers With Debts" »

What exactly does Christmas shopping have to do with energy efficiency? A lot, if you want to get a soon-to-expire discount on new appliances.

For the past two years, homeowners have been eligible for an energy tax credit of up to 30 percent, or $1,500, on products from biomass stoves to storm windows to gas-burning fireplaces. With most Americans still short on cash, it's been a great way to save money when upgrading old appliances, say Chicago bankruptcy attorneys. But all that's coming to an end on Dec 31. In order to take advantage of the discount, you need to have the energy-saving device installed and ready to use by that date.

Continue reading "How Chicago Shoppers Can Save Money on New Appliances This Month " »

If you're more worried about turkey, pies and grocery bills than your taxes this week, you're not alone. But there's a reason you might want to take time out from your hectic holiday schedule to check on your tax situation - especially if you're looking for ways to help lower debt, say Chicago bankruptcy attorneys.

Turns out that more than 100,000 Americans are eligible for a piece of a $164 million pie that the IRS is hoping to serve up this fall. That's the amount of tax refunds that couldn't be delivered this year due to incorrect addresses.

Continue reading "Didn't Get a Tax Refund This Year? Uncle Sam Might Be Looking For You" »

Paying taxes is tough enough as it is. But now popular tax credits could disappear thanks to Uncle Sam's overspending.

According to MSNBC.com, there's a federal commission currently looking at ways to lower the government deficit - including doing away with breaks like the child tax credit or mortgage interest deduction. Eliminating those credits could save $1 trillion annually, but would be a slap in the face to taxpayers already struggling to afford the mortgage and put food on the table, say Chicago bankruptcy attorneys.

Continue reading "Government Debt Could Mean Disappearing Tax Breaks for Struggling Chicago Residents" »

Something scary is on its way to your door, and I'm not talking about trick-or-treaters.

It's property tax season. And if it isn't bad enough that many of us have to pay a property tax bill on top of credit card bills and an expensive mortgage, it looks like that tax bill might be unfairly overpriced. As much as 60 percent of properties in the U.S. may be overtaxed, according to the National Taxpayers Union. Fortunately, there may be a way to lower your tax obligation, say Chicago bankruptcy attorneys.

Continue reading "Chicago Homeowners May Be Able to Lower Property Tax Bill" »

It's enough that we have to worry about our IRAs and 401ks. But what about these new HSAs?

Believe or not, insurance companies aren't trying to make our heads spin. Health Savings Accounts - savings funds where we can stash money for potential medical-related expenses - might be the ticket to affordable health insurance for many Americans, according to Chicago bankruptcy attorneys. Just how much you'll benefit from an HSA depends on your unique financial situation.

Continue reading "Health Savings Accounts Have Pros and Cons for Chicago Insurance Customers" »

On the one hand, the expiring Bush tax cuts left us trillions of dollars in debt. On the other hand, they saved most of us - not just the wealthy - money in the process, say Chicago bankruptcy attorneys.

Currently, the six income tax brackets are 10%, 15%, 28%, 33% and 35%. When the cuts come to an end, those brackets jump to 15%, 28%, 31%, 36% and 39.6%. That means that even if you fall into the lowest range, your tax bill will increase by 5 percent - or about $400 more a year for someone with a $40,000 income, for example. That's no small change when you're already struggling to pay the bills and manage debt as it is.

Continue reading "How Expiring Tax Cuts Could Affect Chicago Taxpayers" »