As many of you know, there have been several tax breaks in place for the last few years that will soon be (or have already been) phased out.  You are probably aware of this because of the recent debate over whether or not to prolong tax cuts for the wealthy (ultimately, these cuts were preserved for another year as part of a deal to extend unemployment benefits).  Students will be aware of the Hope Credit (or the American Opportunity Tax Credit) that provides a credit for some college expenses.  And first time home buyers will be kicking themselves if they missed out on the $8,000 tax credit that expired in 2010.  But what about those who are well beyond the first flush of adulthood and into their twilight years?  With very few exemptions and deductions for the elderly, 2011 could prove to be an expensive year.  Luckily, there is one credit that will allow them to avoid quite a bit of taxation.

For those citizens over the age of 70½, a tax deduction will be given for charitable contributions made from an IRA (Individual Retirement Arrangement).  When people start contributing to a retirement plan at an early age and then continue to work and contribute until the age of retirement (or beyond) without touching that money, they many end up with a lot more than they bargained for.  That’s a good thing, right?  Yes and no.  Unfortunately, the way most of these plans work is that you have to take a certain disbursement each year based on the amount of money in the account.  Remember that this money is tax free only until you draw it.  So when retirees begin to draw from their account, they can easily get bumped into a higher tax bracket and end up owing a lot in income tax.

In order to avoid this situation, many elderly opt to make charitable donations instead of losing the money to the government.  However, they aren’t eligible for many deductions in this area.  This is where the charitable contribution portion of our current tax law comes into play.  As it so happens, this particular law will continue through 2012 (although itemized deductions will now be subject to a cap).  So here’s how it works.

Those who are drawing from an IRA are legally allowed to donate up to $100,000 annually to charity – wait for it – TAX FREE!  The trick is that the amount donated is not considered income.  Therefore, it doesn’t have to be claimed and is not listed as a deduction.  This money comes directly from the minimum disbursement required by your particular IRA, but it doesn’t show up as income, meaning you get to pay much lower taxes.  Hurrah!

This is great news for elderly citizens on a budget.  It can be hard to take disbursements knowing that there are limits to what can be donated for a tax break, but since this portion of charitable donations from IRAs will be around for two more years, everyone who can take advantage of it should certainly do so.

Emma Martin writes for Roth IRA where you can find out how to open your Roth IRA and learn about IRA conversion to Roth as well as finding other tools and information to help you on the road to retirement.

There’s no doubt about it: cars are an expensive commodity for the modern individual.  Not only do you have to take out a loan to purchase one (and pay more than it’s worth in interest), you also have to shell out the cash for regular service, insurance, registration, fuel, and any unexpected problems that are going to arise sooner or later.  Almost makes you want to take a bus, doesn’t it?  But therein lays the appeal of the automobile.  It offers us the freedom to come and go as we please (as long as we can afford the attendant costs).  However, if you are one of the many people who needs a car (for work, ferrying the kids around, etc.) but you just don’t have the thousands of dollars (and stellar credit rating) necessary to complete such a transaction without handing over shares in your immortal soul, then you should know that there are options to save you money.  Here are a few you may have overlooked.

1.  AAA.  You may think that Triple A is only good for roadside assistance, free maps, and getting a 10% discount on hotels and rental cars.  In fact, being a member of the Automobile Association could actually save you quite a bit on a car purchase (as long as you buy from a participating dealer).  You’ll pay a set amount above cost and avoid the haggling that so many people find daunting, virtually guaranteeing you the best price on a new or used vehicle off the dealer lot.

2.  Certified pre-owned vehicles.  This is an excellent way to save on a car that has had minimal use and still comes with a long-term, bumper-to-bumper warranty (it differs by manufacturer, but it could be as good as the warranty on a brand new vehicle).  Plus, dealers guarantee that certified cars have passed a rigorous inspection (although if you live in a state with strict lemon laws, you don’t have to worry anyway).

3.  Up-front service plans.  If you have the available cash to pay for a service plan at the time you purchase your vehicle (for regular oil changes/tune-ups) you stand to save a lot over time on these 3-month/3,000-mile markers.  However, it’s only really worthwhile if you actually bring your car in for scheduled services.

4.  Hybrid or electric.  You might be surprised how many moderately priced eco-cars are now on the market.  For the same amount you might spend on a petroleum-fueled vehicle, you can find one that gets double (or more) the gas mileage (or has no expense for fuel at all…although you will pay for the energy to charge an electric car).

5.  Repairs.  It can be tempting to go to the dealer for service every time you hear knocking and pinging or see a spot of oil on the driveway (and within warranty, this is a good plan).  But they are going to charge you a lot more than just about anyone else once your warranty runs out (or before, if the part in question isn’t covered).  Find a local auto shop that you trust (get referrals) and they will likely offer you options with varying levels of expense from patch-up jobs to full repairs, depending on what you can afford (while the dealer will always insist on a comprehensive fix).

Emma Martin writes for Cheap Car Insurance where you can compare rates and the find the best deals on auto insurance.

No one wants to be on the receiving end of the call or letter telling them they’ve been the victim of identity theft.  You certainly don’t want to open your online banking to find a slew of charges that have cleared out your account without your knowledge, or worse, go to make a transaction and find your card maxed out.  And yet, very few people take the necessary precautions to stop criminals from stealing their private information.  It’s not so much that you’re complacent or lazy; you probably just have no notion of the many ways in which unsavory characters can trick you into giving up the sensitive information needed to steal your identity.  But your ignorance could cost you a lot.  For that reason, you need to get with the program and learn a few tips and tricks that will make it much harder for hackers and con-artists to get the information required for identity theft.

The first and most obvious consideration is volunteering information.  Don’t do it!  Just because someone has your phone number and knows where you bank doesn’t mean you should offer up account numbers, your social security number, or any other piece of personal information they request.  If someone calls you and says they’re from your bank or credit card company, simply hang up and call the number on your card to confirm.  If you call them, you’ll know for certain that they are who you think, whereas anyone could get ahold of your phone number to contact you.

Unfortunately, much more prevalent is online identity theft, and if you don’t know how to protect yourself, you might as well paint a target on your back.  For starters, you need to password protect any online account that could hold sensitive information.  This includes not only email and online banking, but also any retailers that save your credit card number for future use.  In fact, you may not want to provide this information permanently, despite the fact that it makes future orders quicker, just in case their database is hacked.  As for passwords, make them hard to crack by using at least eight characters and including letters, numbers, and symbols if possible.  And be sure to avoid obvious combinations like your name and birthdate, for example.  Finally, don’t use duplicate passwords on various accounts.  Simply keep a list somewhere (that it won’t be lost or stolen) if you can’t memorize all of your passwords.

And when it comes to protecting your information out in the real world, there are a few ways to do so.  When you receive your credit or debit card simply write “Ask for ID” in the space provided for a signature so that vendors will be prompted to ascertain if the person using the card is you (hopefully).  Also, make a habit of perusing any receipt you sign and hand back to the cashier to make sure that your entire card number is not displayed.  Most vendors X out all but the last four numbers, so if you see more, simply black them out yourself.

One last note: be careful about your trash.  Throwing away statements that contain not only your name and address, but also your card number is like asking anyone willing to hop in a dumpster to steal your identity.  Simply spring for a paper shredder to easily avoid this possibility.  Most of these tips may seem like common sense, but considering how many people are the victims of identity theft every day, it pays to know how to protect yourself from those who would profit from your ignorance.

Emma Martin writes for Purchase Order Finance which helps small businesses find the working capital they need for big business opportunities.