Managing - Brief Article

HOW TO MAKE YOUR MONEY WORK FOR YOU

* TAX TIP: If the IRS hits you with a late-payment penalty, think twice before paying it. TimeValue Software figures half of penalties are too high--a particular danger if you earn income unevenly during the year. The company offers a calculator at www.slidecalc.com to help you decide whether to challenge the IRS figure. * STUDENT AID: Revised financial-aid formulas for private colleges hike aid packages by $500 or more for 59% of students, according to the College Board. But aid shrinks for families with business losses or more than one student in college. * DIG .DEEPER: Early estimates are that the social security wage base--the amount of earnings to which the full 7.65% social security and medicare tax apply--will jump $3,900 next year, to $80,100. That would add about $250 to the tax tab for top earners. * IDENTITY THEFT: The FTC has a toll-free hotline (877-A38-A338) for victims of identity theft to report crimes and seek guidance on resolving problems. * CHECK YOUR SAVINGS BONDS: A calculator at www.publicdebt.treas.gov/sav/savcalc.htm tells you the current value of your bonds and exactly how much they're earning right now. * MOVING UP: The interest rate the IRS charges if you're late paying your taxes rose from 8% to 9% on April 1. On the bright side, what the government pays you if you don't get your refund by June 1 rose by the same amount. * TAKE A BREATHER: Since Patriots' Day (April 17) closes the IRS Service Center in Massachusetts, taxpayers in the Northeast who send their returns to Andover get yet another day of grace. Your deadline is April 18.

MAY CHECKLIST

[] Believe it: 52% of college students and recent graduates who responded to a Jobtrak.com poll expect to be millionaires by the time they're 40.

[] Enjoy it: With the number and size of tax refunds running ahead of last year, the IRS will put more than $125 billion into taxpayers' pockets this spring.

[] Change it: Fix your W-4 form at work to reduce tax withholding. You'll start getting installments on next year's refunds starting your next payday.

[] Watch it rise: The rate for series EE savings bonds will rise May 1--to about 5.8%, up from 5.2%.

[] Watch it fall: On May 1, Discover slashes its rebate to 0.25% at Costco, BJ's and Sam's Club--down from as much as 1%.

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