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VISIT OUR NEW JOBS PAGES  http://taxmama.careerbank.com/ Check out the 2004 Salary Survey results to see where you stand.

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Dear Family,

Monday is a holiday for IRS and other Federal and school employees and students. 11 years ago, Martin Luther King Day also fell on a Monday. I remember my buddy, Marvin taking that as a personal day off from work. And my husband was gloating because he was going to get to sleep late that Monday, while I was going to have to get to the office for a 7:30 am appointment.

Well, the universe got even with both of them. That morning, before 5:00 a.m., the earth moved. The Northridge quake woke up everyone in the Los Angeles area - and really ruined a perfectly good day off.

This year, let's hope things stay a little more quiet. So. Cal. already had our trauma - with the major land- slides and floods all over Southern and Central California. (Hey, who in the UN is offering to step in and help us with our dead and injured people? And our property destruction? Anyone hear the United Nation's Jan Egeland speaking up for us lately?)

For those of you who want to enjoy the respite from work courtesy of the great MLK - you might want to visit some towns holding parades and celebrations in honor of his life. Here are some last-minute getaways for you. http://taxmama.com/art/ads/lastminute.html

As ever in January, this is traditionally, the big diet month. So, of course, here's the link to the lazy person's diet - the patches. Do they work? Let me know.   http://taxmama.com/art/ads/1800patches.html

And for those of you brave enough to do your own taxes, TurboTax is ready and waiting for your input http://www.turbotax.intuit.com/welcome/common/landingpage.html?source=giftec

OK, we're gone - you have a lovely, introspective weekend.

Best wishes,

Eva Rosenberg, EA Your TaxMama is watching...out for you.

P.S. THE BOOK is out http://www.taxmama.com/AskTaxMama/book/

P.S.S. Drop by TaxMama's Shopping pages http://taxmama.com/resources/shopping.html

P.P.S. TaxMama is starting to schedule speaking/teaching engagements for next year. (Calendar is filling up) http://www.speakermatch.com/showcase/speakerinfo.asp?id=-667529472

P.P.S. If you're using spam blocker software, please add taxmama.com to your approved list. I don't have time to keep responding to each request for authentication. I get hundreds.

************************************************** To comment on any articles in this issue, please, DON'T send me back the whole issue. Send a note to mailto:taxmama@taxmama.com?subject=AskTaxMamaComment

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ADDRESS CHANGES - Please, do NOT send them to me to do. There is a link at the bottom of this issue. Please click on it and you will be able to make updates and changes yourself. And faster.

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In 2003, Americans OVERPAID their taxes by more than $500 MILLION!

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Play a simple, two minute game and learn what tax professionals call "the most overlooked tax deduction in America." ItsDeductible will put $300 to $1200 back in your pocket -- guaranteed -- or your money back.

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To establish the basis of your donated vehicles - Or to research price quotes and vehicle information                  

use EDMUNDS .com

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----------------------------------------------------------------- Radio Tour -----------------------------------------------------------------

Tune in to Mike Kavanagh at WSB Radio in Atlanta, and on CNN. You'll be hearing tax tips starting in January. http://wsbradio.com/about_us/moneymattersshow.html http://wsbradio.com/features/2004_tax_tips.html

Coming soon - weekly radio show in the MoneyRoom...stay tuned

----------------------------------------------------------------- Note to TaxMama's Clients -----------------------------------------------------------------

Rick and I are taking our last few days off next week. Then, it's back to work - seriously. So, please, don't look for us in the office until Thursday. OK?

But Lulu is in the office - and our fax is working. So if you need your 1099s and payroll/sales tax returns done - get in touch with us ASAP!

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Tax-Free Rewards - Frequent Flier Miles

Visit Tim Winship's FrequentFlier.com to get lots of them http://frequentflier.com/cgi-local/pl.cgi?sub

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----------------------------------------------------------------- Get a Clue Time -----------------------------------------------------------------

Speaking of the floods and landslides in California and elsewhere in the USA this winter, many people have faced inconsolable tragedies - lost loved ones and lost or destroyed homes.

[Do NOT click if you don't want to read some hard truths. Sorry.  http://taxmama.blogspot.com/ ]

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Hey! Look at your teeth. Come on - get them cleaned. http://www.qksrv.net/click-241922-8219039

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----------------------------------------------------------------- FUTA Exempt -----------------------------------------------------------------

From: Fountain Valley, CA

Dear TaxMama,

What are FUTA exempt wages?

Ophelia

<TaxMama Replies>

Hi Ophelia,

Wages over $7,000 per person.

Employers only pay FUTA on the first $6,000 per employee, per year.

Best wishes,

Eva Rosenberg, MBA, EA

http://www.TaxMama.com

The BOOK is out! Small Business Taxes Made Easy  - read all about it! http://www.taxmama.com/AskTaxMama/book/

---------------------------------------------------------------- Live There, File Here ----------------------------------------------------------------

From: Gurnee, Il

Dear TaxMama,

Due to declining health, my parents gave me power of attorney with the IRS. So now all financial mail including tax information is sent to them in care of me at my Illinois address.

They live in Florida.

For 2003, the state of Illinois in 2003 claimed, because of the address on their IRS Tax Form, that they owed Illinois taxes. Or IL wants proof they were not residents.

Proof they say they would accept is evidence that they are paying taxes to another state. Since Florida has no income tax, my parents can't provide such proof of

However, we did provide Florida driver's license, car registration, voter’s cards and fishing license showing they live in Florida.

Illinois' Dept. of Revenue never responded. They just sent us another letter for year 2002.

We replied. Again, no response.

Now, we just received a letter asking for a sworn notarized statement of residency for the year 2001.

Will this never end??????

What can we do to stop the harrassment?

Thanks much for your help.

CJ

<TaxMama Replies>

Dear CJ,

I can understand their confusion.

They get records of all tax returns filed using an ILL address.

And it seems the IL tax department is big on sending out lots and lots of letters...often contradictory.

Why don't you call them up and speak (very politely) to someone there. Explain the situation and ask that person specifically what they would accept - AND may you send it to that person's attention?

Otherwise, sure, get a notarized statement from your parents saying they live in Florida at XYZ address. To substantiate that, enclose a copy of a utility bill showing service at that address.

Keep these documents handy. When you finally get a letter from IL accepting your position, keep a copy of that in a permanent file and send that to them each year, if they persist in asking about that tax return.

Good luck!

Best wishes,

Eva Rosenberg, MBA, EA

---------------------------------------------------------------- Expiring W-2s ----------------------------------------------------------------

From: The Internet

Dear TaxMama,

This may be a stupid question, but does a W-4 ever expire if there are no changes?

Guido

<TaxMama Replies>

Dear Guido,

That's not a stupid question.

It doesn't really expire. If a new one hasn't been prepared, the company's payroll department has to use the information from the previous year - except when the exemptions are over 10.

In that case, a new W-4 must be submitted by the employee in January.

Otherwise, IRS recommends that new W-4s be signed each year.

http://tinyurl.com/5dlcm

Best wishes,

Eva Rosenberg, MBA, EA

http://www.TaxMama.com

---------------------------------------------------------------- Because We Care ----------------------------------------------------------------

Don't let yourself or your friend feel helpless. Share the Power - SCHOLARSHIPS FOR SELF-DEFENSE TRAINING AVAILABLE SHARE THE POWER:SELF DEFENSE TRAINING is gaining POWER!  visit Share The Power - http://www.sharethepower.com

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Helping Seniors keep their pets http://angelsday.org/ Talk to Linda Baker for more information (310) 680-0798 LBaker6343@aol.com

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The Jeremiah Society asks "Who Will Care for the Children?"

Today, many of these people outlive their parents. And therein lies the problem. Once their loving caregivers are gone, who will care for them? And will they be able to care for themselves?

The Jeremiah Society, is working to help enhance and enrich the lives of developmentally disabled teens and adults in the Jewish Community Please Call Rose Lacher, (714) 997-8193

http://www.jccoc.org/adults.html

----------------------------------------------------------------- MONEY FUNNIES -----------------------------------------------------------------

The Mommy Test

I was out walking with my 4 year old daughter. She picked something up off the ground and started to put it in her mouth. I asked her not to do that.

"Why?" she asked.

"Because it's been laying outside and is dirty and probably has germs," I said.

At this point, she looked at me with total admiration and asked, "Wow! How do you know all this stuff?"

"Uh," I was thinking quickly, everyone knows this stuff, "Um, it's on the mommy test. You have to know it, or they won't let you be a mommy."

"Ohhhh." was her only reply. We walked along in silence for two or three minutes, but she was evidently pondering this new information. "I get it!" she beamed.  "Then if you flunk, you have to be the daddy!"

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Courtesy of Joyce Ragels, EA in Arizona

----------------------------------------------------------------- IRS and Tax NEWS -----------------------------------------------------------------

Courtesy of Vertex Inc.

NEW YORK OFFERS ONE WEEK EXEMPTION ON CLOTHING At the end of January certain clothing items will be tax exempt in N.Y. State. Please use the link below to access further information about which items will qualify. http://www.vertexinc.com/TaxCybrary/SalesTax/topchanges_01-2005/retailers.asp

ILLINOIS OFFERS INTERNET SALES TAX FILING Illinois now offers fast and secure filing of sales tax via the Internet, with no special software required. Use the link below to learn more about this exciting initiative. http://www.vertexinc.com/TaxCybrary/SalesTax/topchanges_01-2005/general3.asp