by Alexandra Pauline – February 6, 2012

The Art of Tax Deductions

If you’re a freelancer, or you own a small business, the idea of getting a tax refund is likely a foreign concept.  Unlike our W2 bound friends, the art of understanding tax deductions is even more crucial for 1099ers when figuring out what you really owe each quarter and at the end of the year.  Consult with your accountant and take advantage of these Fab & Fru career specific tax tips – so you don’t end up paying more than you actually owe!

Writing-Off Your Home Office

What constitutes a home office anyway?  It doesn’t matter if you’re a musician, writer, financial consultant or a florist, if you work from home, you may be eligible to write off  portion of your rent or mortgage if your work space fits the IRS’s criteria.   According to the IRS, the key is your home office must be used for the business ­ purposes ONLY, and if audited, you must be able to prove it.   Even if your work area is part of larger room in your house, that space must be sanctioned off in some designated way.  –You can deduct up to 33% of your rent, so consult with your tax professional when trying to figure out the appropriate deduction to take.

The Cost of Doing Business… At Home

In addition, Michael Carney of MWC Accounting states that: “If an entrepreneur or small business owner operates their business from their home, there are many expenses that they can deduct.  Office furniture, heat, air conditioning costs, electric bills, and related home repairs are just examples of potentially eligible deductions.”  Frugal freelance writer Robert Ellis-Smith even added, “When I first opened my business – publishing a newsletter – I deducted the cost of firewood because that is how I heated my separate home office!”

Let Your Money Take Center Stage

If you are an actor, comedian, dancer or musician, there are many unexpected deductions you can take as a working performer.  While working hard to try and make it big doesn’t come cheap, you are entitled to some substantial deductions that may make tax time a little easier.  Did you know that your union dues, head shots, costumes, gym membership, monologue books, sheet music, haircuts and reels may all be eligible to be written off within the year of purchase?

by Brandi Savitt – January 25, 2012

The Cost of Traveling Abroad

Last week, in the dead of a long dark winter, I was fortunate enough to travel up to to the Arctic Circle in Norway to attend a film festival.  And while I didn’t get to see the Northern Lights, I did try whale sashimi (…is that legal?) and took a picture with a life size taxidermy Polar Bear…

Work brings me to Europe several times a year.  And while any chance I get to write off sipping wine on the Rivera is a dream come true,  my bank and credit card companies just love to find any sneaky excuse they can to charge me extra fees.  So, if you’re planning a trip to a foreign land, here’s what you need to budget for so you have NO surprises when you go to pay your credit bill when you get home!

What is a Foreign Transaction Fee?

According to Credit Card Hub, the credit card foreign transaction (or international) fee is the combination of a fee that Master Card, Visa, etc charges to handle the transaction between the overseas merchant and your credit card issuer (eg. Chase, Citi, Bank of America), and the fee that your credit card issuer charges on top of that.  Depending on the type of card, and its issuer, this fee is typically 2-3% of every purchase made!

Not So Hidden Fees

If you’ve used your credit card recently while traveling, or even if you’ve purchased something online from a foreign company, you may have noticed this separate, hefty surprise fee on your statement.  I thought this was just a new type of fee that credit cards could now pass onto their customers, but I was wrong.  It’s always been there.  But now the credit card companies are forced to point it out.

American Express explained to me that they’ve always charged a fee for foreign purchases, but they used to roll it into the total purchase number on the statement – essentially hiding their 2.7% foreign transaction fee from the naked eye!  Luckily for us, now we can see for ourselves just how much extra we’re getting charged for the privilege of traveling and spending money abroad!

Call Your Credit Card Company Before You Travel

Before you travel to another country, call each of your credit card companies and see which of your cards has the lowest foreign transaction fee.  Then add that fee into your travel budget. 

If you have an American Express Platinum Card, or another premium card, your international fee may be automatically waived.  But don’t rush out and apply for a premium card just to avoid the fees.  Unless you travel abroad extensively, these premium cards may not be the worth the high annual fee.

…And just as a general note,  while you have someone on the phone, you should always alert your card company that you will be leaving the country.  This will help avoid them from freezing your card in fear that it was stolen.

by Alexandra Pauline – January 11, 2012

Make Your Space Work For You

It’s tax season, and there’s no time like the present to get organized and turn your home office into a calm haven of peaceful function.  Here at Fab & Fru we’ve got some simple and creative ways to give you closet hoarders some new found hope…

Make Room In Small Spaces

If you’re a city dweller who’s idea of a home office is your iPad, your scattered bills and a cup of coffee, have no fear – you can still get organized even with the smallest of space.   Head to your local Target and pick up a discounted pack of shelves.   In less than an hour you can turn your desktop nook into the fully functioning “corner” office of your dreams!

New York City real estate broker Nick Jabour says he has his “MacBook in a desk drawer that’s wired to a flat LCD panel on the wall.  I have a magnetic bulletin board that holds notes, pen cups and a stapler.  A shelf mounted above the desk holds my check ledgers, reference books, and other items.”  If you’re working with even less space, getting an accent basket and filling it with office supplies and files is a great way to turn your hallway table into a desk when you need it!

Creating Functional Decor

Small details like colorful matching storage boxes are not only a functional way to bring a calming sense of order to a home work area, they can also be decorative!  Use them as an accessible way to separate your paperclips, pushpins, stamps and post-its.  Another Fab & Fru way to create some stylish do-it-yourself storage is by turning old mason jars into micro-storage units.

Clutter Killing Cork

We love the idea of doing a FRU corkboard…with a FAB twist!  If your desk is against a wall, cork board is a great space optimizer – but it can be a bit drab to look at.  Our solution?  Frame it!  Find an inexpensive frame at an antique shop, or reincarnate one from a mirror or painting you already have.  Just remove the glass, cut the cork to fit, and slip it into the frame – you can even cover it in some fabric for an extra luxe look.   Suddenly, you have not only a piece of home decor, but a functional office accessory you will actually enjoy looking at!

Double Duty

If you’re work area also happens to be doubling as another space – synergy is key.  Many working moms opt to combine their office and nursery.  In this case, keep the color schemes the same, and go with a bold unifying accent piece.  Try a solid paint for the walls, and substitute a stuffy office chair with a stylish and sturdy club chair in a pattern – and don’t forget the pillow.  Ample lumbar support is key for mitigating back pain!

Check it out and get prepared for all those delightful deductions!

Get personalized tax advice for your unique situation at TurboTax® so you know you are getting all the deductions you deserve.

by Stephanie Berenbaum – January 5, 2012

Avoid the Price of the Boot & Tow

It’s not even a week into the new year, and already our friend Samantha has broken one of her New Year’s resolutions!  2012 was the year she was finally going to get more organized, not let mail pile up, and stay on top of her bills.  She had the best of intentions, really…

But her optimistic outlook on 2012 was already totally threatened by January 3rd when she looked out her window to see a big orange BOOT being placed on her car!  To make matters worse, it turned out the boot was the least of her troubles.  Because, as the Los Angeles City employee told her, the tow company was on their way…

Beware of Unpaid Parking Tickets..

SERIOUSLY!  As Sam learned the hard way, the current rule in LA is if you have FIVE unpaid parking tickets, your car can be booted and towed – even if the ticket is just a month old.  If you know anything about driving and living in Los Angeles – getting parking tickets should be a budgeted cost of living in this town.  And it’s not just Los Angeles – if you live or work near any large city, chances are you’ve had to pay big bucks for a parking violation at some point or another.

What to Watch for…

So, it got us thinking, there are so many different types of parking violations that cities enforce because the profit margin for them is just so gigantic – what sort of parking rules and tips do you need to be aware of, aside from the obvious?  Of course each city has its own special violation nuances, but here are things to think about wherever you drive!

The Broken Parking Meter

I always assumed that a broken parking meter meant you get a free pass – I mean, it’s not your fault it’s broken, right?  But many of our friends have told tales of getting ticketed while parked at these broken meters!  What gives? While rules differ by city, one thing we learned is that even if a meter is broken, you still have to adhere to the time limits – so be careful not to overstay your welcome.

How Many Tickets Before You Get the Boot & Tow?

This was our friend Samantha’s downfall.  Apparently, many cities are reducing the number of unpaid tickets you’re allowed before you get towed.  As we mentioned, Los Angeles will now boot and tow you if you have 5 unpaid parking tickets – and there is a movement to reduce the number of tickets even lower.  SO – be sure to find out what your city’s limit is – and pay up before you hit it the limit!

How Many Days To Doubling?

If a ticket goes unpaid for a certain number of days – surprise – the fine DOUBLES.  But you may not be aware that many cities are also reducing the number of days you have to pay before the add another fine.  Make sure you know how quickly you need to pay in your town before your parking budget is completely busted!

Get A Slice Of Our New Favorite App

I don’t know about you, but holiday shopping has already started to get the best of what little sanity I had left.  I know online shopping is supposed to make my life easier, but I have to admit I have trouble keeping track of all my online purchases. Which is why I was thrilled to learn about SLICE – a new, FREE online service and app that can help even the most disorganized among us (yours truly) keep online purchases organized!  Now if it could just get dinner ready and convince my three year old to brush his teeth…

What is Slice?

Slice is a free, web based service and downloadable app that works by finding the receipts for online purchases in your email and organizing all your purchase info – just for you!  It’s pulls all the info you need – shipping notifications, tracking numbers, return policies and customer service info – and organizes it all in one easy place.

Some Very Fab & Fru Features

Slice saves you time, money — and stress.  How Fab & Fru is that?! Some of our favorite features:

• It tracks all your shipments on one map with detailed info of exactly exactly you bought – not just where it is coming from.
• Notifies you when gifts you ordered have shipped – and been delivered.  Plus, the new “Track with Friends” feature even sends a festive notice to your friends that a gift is on the way (without telling them what’s in the package!)
• The app simplifies returns by keeping all electronic receipts along with customer service info and return policies. No more frustrating inbox searches for receipts – yay!
• Are you a Daily Deal Diva? Slice keeps track of your purchases from both Groupon and Living Social.
• It also helps you get price adjustments – the most Fab & Fru feature of all!  Slice tracks your orders, and lets you know when there has been a price drop so you can recoup the difference!

Ok, So how does it work?

Slice currently can be linked up to Yahoo and Gmail accounts, so if you have your online receipts sent to one of those accounts, you are in luck!  And Slice is now also available for iPhones & iPads from the iTunes App store.  Slice currently is set up to track purchases from large merchants like Amazon, ebay, Apple, etc – and thousands of others, with new merchants being added all the time.

For More Info…

For more info check out www.goslice.com  or Project Slice on Facebook.  And if any of you are already using Slice, we’d love to hear about your experiences with this App.   Here’s to a way more organized shopping season!

*This is Not a paid advertisement.  We just think it’s cool!

by Stephanie Berenbaum – December 12, 2011

A City Girls Guide to Saying Thanks!

Giving holiday tips to service providers may be synonymous with Santa, but knowing what and how much to give remains a source of confusion for most of us – especially during times of economic hardship.  Not to worry –  we have some pretty strong Fab & Fru opinions on the topic!

When You Can’t Afford To Tip!

Let me start off by saying of course if you cannot afford to give the customary holiday bonus due to financial hardship, it is best to be honest with the service provider or employee and let them know how much you appreciate all of their hard work.  Always give a thoughtful card and a homemade token of appreciation rather than avoiding the topic all together.   And be sure to let them know that you hope next year will be more prosperous for everyone!

Ready, Set, Tip!

For those of you lucky enough to be in stable financial condition, these tips are meant for you!  We canvassed friends and family in major cities across the country to see what the standard tipping range is for the most common services.   *REMEMBER, whenever you give a tip or a gift, accompany it with a card! Cards give you a chance to express your appreciation while reminding the person who the gift is from!

The Nanny

2 weeks pay is a customary holiday bonus – and yes, that is in addition to time off (even if you decide to take a last minute holiday family vacation)!  The fact that your nanny continues to receive her salary while you are on vacation is not a substitute for a cash bonus.  Neither is the fact that you may have generously given them hand me down designer bags, etc. during the year. That sort of generosity is of course fabulous, but not a substitute for a proper cash bonus. This person is in charge of taking care of the most important people in your life – your kids! Showing how much you appreciate them is essential.

The Babysitters

For a babysitter you use on a regular basis, one night’s pay seems standard among people we polled – of course this amount will vary greatly on where you live and how much you pay an hour!

Teachers & Day Care Providers

Emily Post says that giving teachers a non- cash gifts from both you and your child is the way to go – but we disagree.  With the often paltry amount teachers & day care providers get paid, most teachers I asked said they WAY prefer a cash (or cash equivalent) gift.  Gift cards are a fantastic way to show your appreciation.  Accompany your gift with a homemade treat from your kids, and you will have made one teacher very happy!

The amount you give will of course depend on what you can afford.  Many people we polled suggested a gift in the range of $50-$100 for the head teacher, and a smaller gift for any assistant teachers.  Even if your price range is in the $5-$10- go for the practical gift – a Starbucks gift card or something that will actually save them out of pocket cash will always be appreciated!

The School Security Guard

I know… It’s such a sign of the times that most schools have armed security guards.  Not only are they keeping our schools safe, but many of them are the welcomers that help start out kids days off wit a smile.  Depending how many guards you have to tip, $20-$30 – cash or gift card – is the going rate!

What Tax Deductions Can You Take?

No, this tax article isn’t a misprint!  It’s the end of the year, and ’tis the start of tax season.  Our good friend – and Certified Financial Planner – Michael Hardy, of Mollott and Hardy, Inc. (along with Efile.com),  just reminded us about one of the greatest holiday gifts you can give yourself: to be well organized and make sure you have all the relevant documentation for tax time NOW,  so you can save as much money as possible when you file your 2011 taxes.

Here are some key questions Michael wants you to ask yourself to help determine what deductions you are eligible to take advantage of.   –Thanks Michael!

Make Your Job Work for You!

• Do You Pay For Parking At Work?  You may be able to deduct the cost of parking.
• Do you Use Your Car For Business? You may be reimbursed for business use of your vehicle based on miles driven.
• Do You Ride A Bicycle To Work? If so, you may be reimbursed for the cost of the bike as well as repairs and storage.
• Have You Gone On Work Related Trips? Keep all your receipts – even down to dry cleaning and baggage handling.
• Have You Lost or Changed Your Job?  It takes money to look for a new job – and you might be able to deduct these expenses.
• Do You Work From A Home Office? You may be able to deduct expenses like internet, phone, furniture and security
• Did You Move Closer to Work or to Take a New Job? If your new residence is at least 50 miles closer to your workplace than your old home, you qualify for a deduction of your moving expenses.
• Do You Belong To A Union? Union dues and initiation fees are deductible.
• Do You Make a Low Income? Check if you qualify, and don’t miss out on the Earned Income Tax Credit.
• Do You make Retirement Savings Plan Contributions?  If so, you might be able to get a tax credit for qualified contributions.

Green Living Puts Green in Your Pocket!

• Did you buy an electric car in 2011? If the car you bought in 2011 is a plug-in hybrid or fully electric vehicle, you could qualify for a tax credit of up to $7,500.
• Did you improve your home with energy-efficient appliances, windows, doors, or other energy saving devices? You may be able to deduct up to $500 for the expenses, or even more for installing renewable energy sources.

Family-Friendly Tax Savings!

• Do you have children or other dependents? You may qualify for a $1,000 credit per dependent with the Child Tax Credit.
• Did you adopt a child? There is a special refundable tax credit for which you may qualify. The credit can reimburse up to $13,360 of qualified adoption expenses.
• Are you a student or the parent of one?  If so, you have a choice of credits. You may be able to receive up to $2,500 per student.
• Did you get married?  Congratulations! There are several tax-related implications which you should know about.
• Did you get divorced? As with marriage, there are several tax-related implications in cases of divorce or separation. For example, alimony is deductible while child support is not.
• Did you spend money on medical care?  Most people did, of course. But if you had a particularly tough year, you may be able to deduct any medical expenses which exceed 7.5% of your income.
• Do you employ your child in a family business?  If you hire one of your children who is less than 18 years old, you may not have to withhold taxes from their salary for social security, Medicare, or unemployment.

If your taxes are complicated in any way, or you are unsure about what deductions you are eligible for – don’t guess – consult with a CPA.  Hiring a certified accountant may cost you up front, but a good accountant will help save you in the end.  Happy Early Tax Planning!

By Stephanie Berenbaum – November 10, 2011

Introducing our First Fab & Fru 5 Minute Guide!

We know, just what you wanted to think about today – emergencies…  Well, before you click back over to TMZ, hear us out.  No one wants to think about potentially life-altering illnesses or events, but ladies – we owe it to ourselves and our families to be prepared.  The last thing you want to be is a big old ostrich when it comes to your own life!

The good news is that Fab & Fru has teamed up with our friends at Citibank’s Women & Co. to bring you a series of Fab & Fru 5 Minute Guides – handy little life guides that break down even the heaviest of topics into fun (yes, fun), quick & easy reads! As you all know, you can never have enough fabulous girlfriends in your life, which is why we are so thrilled about our relationship with Women & Co. – financially savvy gals you’d actually want to go to dinner with – what more could we ask for?

The team at Women & Co. gave us some great ideas for financially prepping for an emergency (we’re assuming you already have a good therapist to handle the rest), so do yourself a favor and take a big girl pill – and 5 minutes-  to check out the first in our new series!

Fab & Fru 5 Minute Guide #1- Financially Prepping For An Emergency

Based on an article by Women & Co.

We’re not trying to be dramatic here, but whether you want to think about it or not, life is bound to throw some curve balls your way.  And when serious emergencies do arise, you’ll be glad you took five minutes now to remind yourself of how to prepare – financially – for the future!

1. INSURANCE

You might not even be aware that there is insurance beyond auto, homeowners and health.  NOW is the time to start educating yourself about other policies that can help protect you and your family:

Life Insurance  – Yes, we know, it’s creepy to talk about – scarier NOT to!

Disability Insurance – No matter how invincible you feel, everyone is vulnerable to accidents, which can take you out of the workplace for an extended period of time.

Long-Term Care Insurance – You know that 100 is the new 60, right? And, yes, hot stuff, someday even YOU may need home aides and nursing home care.  NOW is the time to start thinking about it – it will be way cheaper to get it when you are younger than when you really need it!

2.  EMERGENCY CASH RESERVES

In an ideal world, financial planners advise people to always have a 6-12 month cash reserve available for times of economic uncertainty.  With the economy the way it is, this is easier said than done.  Start adjusting your lifestyle accordingly so you can start saving and be in a position of power – not panic – should emergency strike.  As much as you love your Pilates class, believe us – it is worth canceling the gym membership in order to get your financial fitness up to speed!

 Based on an article by Women & Co.

We’re not trying to be dramatic here, but whether you want to think about it or not, life is bound to throw some curve balls your way.  And when serious emergencies do arise, you’ll be glad you took five minutes now to remind yourself of how to prepare – financially – for the future!

1. INSURANCE

 You might not even be aware that there is insurance beyond auto, homeowners, and health.  NOW is the time to start educating yourself about other policies that can help protect you and your family:

Life Insurance  – Yes, we know, it’s creepy to talk about – scarier NOT to!

Disability Insurance – No matter how invincible you feel, everyone is vulnerable to accidents which can take you out of the workplace for an extended period of time.

Long Term Care Insurance – You know that 100 is the new 60, right? And, yes, hot stuff, someday even YOU may need home aides and nursing home care.  NOW is the time to start thinking about it – it will be way cheaper to get it when you are younger than when you really need it!

2.  EMERGENCY CASH RESERVES

In an ideal world, financial planners advise people to always have a 6-12 month cash reserve available for times of economic uncertainty.  With the economy the way it is, this is easier said than done.  Start adjusting your lifestyle accordingly so you can start saving and be in a position of power – not panic – should emergency strike.  As much as you love your Pilates class, believe us it is worth canceling the gym membership in order to get your financial fitness up to speed!

3.  ESTATE PLAN 

 We know, we know – you’re probably thinking you don’t have much of an “estate’ to plan for!  But an estate plan has nothing to do with living in a mansion.  All of us, no matter what our financial status, should have a legal plan in place in case we become impaired or, you know, dead.  Estate planning includes:

A Will & Testament.  Single or Married, we should all have a will.  We’re assuming you would rather have control over where your money and possessions  – not to mention children! – go in the event of your passing.

Living Will – Like it sounds, it’s something that affects you while you are still living.  This document lets you appoint someone to make medical treatment decisions for you if you cannot do so for yourself.  Maybe even more depressing to think about than the last will and testament, we know, we know.

Power of Attorney/ Health Care Proxy – This person not only can make medical decision on your behalf, but also financial and legal ones.  In other words – choose wisely.  And for goodness sake, remember to update according to major life events like divorces!

For a more in depth look at related issues, check out these articles:

Do You Really Need a Will?

In Case of Emergency

Single Women and Life Insurance