By Andrew Schwartz, CPA
Wikipedia defines money as follows:
Here’s how Vince Vaughn and Jon Favreau define money in their hit movie Swingers: Money: (adj) Top shelf (e.g., “You’re so money.”)
Trent: Baby, that was money! Tell me that wasn’t money. Mike: That was so demeaning. Trent: She smiled, baby. Mike: I can’t believe what an a**hole you are. Trent: Did she, or did she not smile. Mike: She was smiling at what an a**hole you are. Trent: She was smiling at how money I am, baby.
Regardless of how you view money, let’s give some thought to some tax-savvy and prudent steps you can take with your money during 2012.
Find Some Money:
What better way to start the year than by uncovering some money sitting there waiting for you to find? Start by making sure you submitted sufficient receipts to get back all the money you set aside last year to fund your employer’s Flexible Spending Accounts (FSA). Many people take advantage of FSAs to pay for their family’s healthcare expenses and dependent care expenses with pre-tax dollars. Most FSAs give you until 3/15 to submit receipts for the prior year.
You might also consider checking to see if there is any of your money sitting in your state’s unclaimed money fund. The Massachusetts Abandoned Property Division web site estimates that one person in every ten has abandoned property. According to the Massachusetts Abandoned Property Laws, most financial assets that have been inactive for more than three years are declared “abandoned” and turned over to the Commonwealth.
Check in tomorrow for “Money – Part II: Save and Put Away Money”