According to tax experts at Kiplinger Personal Finance, there are five legitimate tax deductions taxpayers frequently overlook. Consider these, which can save you a bundle if they apply:

State sales tax – The state sales tax deduction, which expired at the end of 2011, was re-instated on January 1 as part of the fiscal cliff negotiations – and is retroactive for 2012. Congress offers a choice between deducting state income taxes paid or state sales taxes paid. Choose whichever gives you the largest deduction. (The IRS has tables that show how much residents of various states can deduct based on income and state and local sales tax rates.)
State taxes paid last year – If you paid tax when you filed your 2011 state income tax return in 2012, include the amount in your state-tax deduction this year along with state income taxes withheld from paychecks or paid via quarterly estimated payments.
Charitable deductions – Most of us take deductions for our larger charitable gifts, but you can write off smaller out-of-pocket costs incurred while doing work for a charity – including food you donate to a nonprofit organization or stamps you buy for your school. Keep receipts and if your contribution totals more than $250, get an acknowledgement from the charity. If you drove your car for charity in 2012, deduct 14 cents per mile plus parking and any tolls paid.
Job hunting costs – Qualifying expenses incurred during a job search may be written off even if you didn’t land a new job, to the extent that your total miscellaneous expenses exceed 2 percent of your adjusted gross income. Deductible costs include transportation expenses, including 55.5 cents a mile for driving your own car, plus food and lodging expenses if your search took you away from home overnight, plus cab fares, employment agency fees, and costs of printing resumes, business cards, etc. (Job-hunting expenses incurred while looking for your first job may not qualify.)
American Opportunity Tax Credit – Unlike the Hope Credit that this one has temporarily replaced, the American Opportunity Credit is good for all four years of college, not just the first two. The tax credit is based on 100 percent of the first $2,000 spent on qualifying college expenses and 25 percent of the next $2,000, for a maximum annual credit per student of $2,500. The full credit is available to individuals whose modified adjusted gross income is $80,000 or less ($160,000 for married couples filing a joint return).

In today’s economy, according to business consultant Jim Kukral, you need to be more than experienced, qualified, and personable to get the job you want. You need to stand out from the crowd, approaching your job search in ways that grab –and hold – attention.

“No employer today is going to remember someone who falls in the middle of the pack,” says Kukral, whose book, “Attention! This Book Will Make You Money,” instructs individuals and businesses in the art of using creativity and the Web to find success.

Kukral offers five ways job-seekers can stand out from the crowd:

Ramp up your resume – To most hiring managers, resumes look pretty much the same. Make yours stand out by delivering it in a catchy, unusual way – maybe attached to a box of donuts delivered to the CEO’s office, or on a bulletin board covered with post-it notes describing your most distinctive qualities.
Try a Facebook ad – Facebook offers an inexpensive advertising service that allows you to create your own target ad. Create an ad pointing out your skills, experience and goals – and send it to the companies you want to work for, or specifically to executives of those companies.
Make it personal – Before you go on a job interview, use Facebook, Linked In or other social media sites to learn as much as you can about the interviewer. Is he a golfer, like you? Do her children attend the same school as yours? Do you support or volunteer for the same charity? Anything you can do to create a more personal connection will get your interview off to a memorable start.
Use YouTube – Create a personal video thank you note to send to the interviewer after your meeting. Or put something together that tells a potential employer about your unusual skills and/or creativity.
Promote yourself in unexpected places – It may cost you a little money to put yourself up on a billboard or take an ad in a targeted business magazine. But the investment may be well worth it if it catches the eye of a company executive who appreciates your out-of-the-box thinking.

I recently held our first training call with our new virtual coaching platform, and noticed that the one topic that drew the most interest was when I covered “the three questions to ask yourself every single morning.” By simply asking these three questions, you will find that you can be more productive and have better direction for your day.

Here are the three questions:

1. What – The first question to ask yourself every day is, “What do I want to accomplish today?” It is such a direct question that forces you to focus on a specific direction for the day. Most of us wake up most mornings and do whatever shows up on our desk or in our inbox. Please remember this though – not all movement is progress and it is important not to confuse the difference between achievement and activity. One gets you something in the end while the other just keeps you busy and tired. What do you want to accomplish today?

2. How – Now that you know what you want to accomplish, the real question is how do you plan to accomplish it? We do not get to wherever we are by accident. If I want to go to my friend’s house, no matter how close it may be to where I currently am, if I don’t follow the exact directions to get there I will never find myself at his place. The same is true with your business. You can want to create more transactions or sell more products but if you don’t have a plan on how to do it, you will unfortunately find yourself in the place of activity and not achievement.

3. Who – It is crucial to be aware of who you choose to surround yourself with each and every day. Your environment has everything to do with your success and your environment is not only controlled by what you do to have an effect on your own state, but also by the mood that those around you bring to the table. We all know people that make us feel good when they are around us, and we all also know people who view everything as always miserable, the glass is always half empty and they are not happy unless you are not happy with them. Remember that there is a transfer made between you and everyone that you come in contact with. You need to be in synch with what the people you are choosing to surround yourself with on a daily basis are going to transfer to you. Do they help or hurt your cause for the day?

By asking yourself these three very simple questions you should find that you are more productive and have a purpose for each day. Success doesn’t happen by accident. Tony Robbins once said, “Success leaves clues.” Have a great day!

Jared James is the CEO and Founder of Jared James Enterprises, an internationally sought-after speaker and trainer. James built one of the fastest-growing real estate teams in the country, was inducted into the International Hall of Fame for one of the world’s largest real estate companies and wrote a best-selling book—all before the age of 28. As an acclaimed speaker, James keynotes events for major real estate organizations and conducts regular webinars and training for nationally known organizations like NAR, CRS, Yahoo Real Estate, Trulia and Zillow Academy and blogs regularly for RISMedia.

To stay in touch with Jared James, visit www.facebook.com/jaredjamestoday and www.twitter.com/jaredjamestoday or visit his website at www.jaredjamestoday.com.

In the fourth quarter of 2012, 84 percent of homeowners who refinanced their first-lien home mortgage either maintained about the same loan amount or lowered their principal balance by paying-in additional money at the closing table; just shy of the record 85 percent during the fourth quarter of 2011. Of these borrowers, 46 percent maintained about the same loan amount, and 39 percent of refinancing homeowners reduced their principal balance.

The average interest rate reduction was about 1.8 percentage points, or a savings of about 33 percent in interest rate, the largest percent reduction recorded in the 27 years of analysis.

The net dollars of home equity converted to cash as part of a refinance, adjusted for consumer-price inflation, remained at a low volume. In the fourth quarter, an estimated $8.1 billion in net home equity was cashed out during the refinance of conventional prime-credit home mortgages, down from an estimated $8.2 billion in the third quarter and substantially less than during the peak cash-out refinance volume of $84 billion during the second quarter of 2006.

Property-value change, loan age, and rate reduction differed between refinancings under the Home Affordable Refinance Program (HARP) and other refinances.

o For loans refinanced during the fourth quarter through HARP, the median depreciation in property value was 29 percent, the prior loan had a median age of about 5.9 years (to be eligible for HARP, the prior loan had to be originated before June 1, 2009), and the HARP borrower with a 30-year fixed-rate refinance (no product change) had an average interest-rate reduction of 2.0 percentage points.

o For all other (non-HARP) refinances during the fourth quarter, the median property had very little (0%) change in property value between the dates of placement of the old loan and the new refinance loan, the prior loan had a median age of 3.7 years, and borrowers who refinanced a 30-year fixed-rate into the same product had an average interest-rate decline of 1.5 percentage points.

In the ten largest metropolitan areas, those that experienced the more severe property value declines tended to have older loans, very little cash-out, and larger percentage declines in mortgage rate. For example, borrowers that refinanced in the Detroit metro area (and had experienced a 37 percent decline in property value between placement of loans) paid off loans that were about 7.4 years old, cashed-out equity in only 7 percent of loans, and reduced their mortgage rate by 30 percent. In contrast, borrowers that refinanced in the Boston metro area (and had about 4 percent value decline) paid off loans that were 2.9 years old, cashed-out equity in 19 percent of loans, and had reduced their mortgage rate by 24 percent.

“On average, borrowers who refinanced reduced their interest rate by about 1.8 percentage points,” says Frank Nothaft, Freddie Mac vice president and chief economist “On a $200,000 loan, that translates into saving about $3,600 in interest during the next 12 months. Fixed-rate mortgage rates hit new lows during December, with 30-year product averaging 3.4 percent and 15-year averaging 2.7 percent that month, according to our Primary Mortgage Market Survey®.

“While all borrowers that refinance have benefitted, HARP has enabled many borrowers that traditionally would not have had access to refinance to obtain low rates and significantly reduce their interest rate and monthly payment. This increases the likelihood that these borrowers will continue to perform on their loan and remain homeowners.”

For more information, visit www.FreddieMac.com.

“Following solid gains over the past year, builder confidence has essentially leveled out and held in the same three-point range over the last four months,” notes NAHB Chairman Rick Judson, a home builder from Charlotte, N.C. “This is partly due to ongoing uncertainties about job growth and consumer access to mortgage credit, but it’s also a reflection of the fact that builders are now confronting rising costs for building materials and, in some markets, limited availability of labor and lots as demand for new homes strengthens.”

“Having risen strongly in 2012, the HMI hit a slight pause in the beginning of this year as builders adjusted their expectations to reflect the pace at which consumers are moving forward on new-home purchases,” observes NAHB Chief Economist David Crowe. “The index remains near its highest level since May of 2006, and we expect home building to continue on a modest rising trajectory this year.”

Derived from a monthly survey that NAHB has been conducting for 25 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores from each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

Holding above the critical mid-point of 50 for a third consecutive month, the HMI component gauging current sales conditions fell by a single point to 51 in February. Meanwhile, the component gauging sales expectations in the next six months rose by one point, to 50, and the component gauging traffic of prospective buyers slipped four points, to 32.

Three-month moving averages for each region’s HMI score were mixed in February, with the Northeast up three points to 39 and the West up four points to 55 and the Midwest and South each down two points, to 48 and 47, respectively.

HMI tables can be found at www.nahb.org/hmi.

For more information on housing statistics, visit http://www.housingeconomics.com/.

Bad neighbors can include homeowners with annoying pets, unkempt yards, unpleasant odors, loud music, dangerous trees and limbs, or poorly maintained exteriors. A homeowner or prospective homebuyer should visit a street on several days at various times to learn more about what is happening in the neighborhood. A home’s proximity to a bad neighbor also can impact the rate of potential decline in value.

“I’ve seen many situations where external factors, such as living near a bad neighbor, can lower home values by more than 5 to 10 percent,” said Appraisal Institute President Richard L. Borges II, MAI, SRA. “Homeowners should be aware of what is going on in their neighborhood and how others’ bad behaviors could affect their home’s value.”

Appraisers refer to this as external obsolescence, which is depreciation caused by external factors not on the property. According to The Appraisal of Real Estate,13th Edition (Appraisal Institute, 2008), external obsolescence may be caused by economic or locational factors, and may be temporary or permanent, but it is not curable by the owner, landlord or tenant.

The Appraisal Institute urges homeowners to take the following steps when dealing with troublesome neighbors:

1. Speak with other neighbors. Get consensus when identifying issues, and approach the bad neighbor together.

2. Look up original and updated subdivision restrictions. If talking to the neighbor doesn’t work, see if they’re violating any restrictions. If so, writing to the code office of the municipality and reporting the bad neighbor could spur an investigation into the nuisance. Depending on the offense, a call to the local health department also may be warranted.

3. Hire an attorney. If all else fails, the cost of an attorney likely will be less than the home’s potential loss in value.

“Even though homeowners do have some recourse, it’s important for prospective homebuyers to carefully examine the neighborhood where they’re considering living,” Borges said. “That way they can hopefully prevent any problems in the first place.”

Potential homebuyers also should be aware of a property’s proximity to commercial facilities, such as power plants and funeral homes, as these also can negatively affect a home’s value.

For more information, visit www.appraisalinstitute.org.

Giving your home an updated feel doesn’t require a full-scale renovation. Instead, focus on simple updates for the most frequently used rooms in your house. When you’re ready to get started on your home’s new look, let these trends of the year be your design guide.

In the kitchen
Kitchens need to be functional, but in this hub of the home style is just as important. Upholding practicality while adding visual interest is a top trend this season. Two-toned upper and lower cabinet colors are rapidly growing in popularity as a way to let homeowners customize their kitchen spaces and express their personalities.

Maple is the style frontrunner when it comes to wooden cabinets, but painted cabinets in white, black and gray tones are also on the rise. Whether you opt to replace your cabinet fronts or paint them, your efforts will give you impressive – and fast – results.
On the functionality front, innovative hands-free faucets simplify cooking and cleaning tasks while requiring minimal effort to install.
Open shelving is seeing a boost in popularity. Both glass-fronted cabinets and simple open shelves capture this trend, allowing you to put your style on display while creating a sleek, updated look.

In the bath

A luxurious-feeling bath doesn’t need to make big demands on your wallet. By making a few on-trend updates, you’ll give your room designer appeal guaranteed to make an impression.

Updating the vanity, often the focal point in a bathroom, provides immediate results. Customizable modular options let you create a storage-savvy vanity that fits virtually any bathroom while also adding functional drawer and countertop space.
Tiling provides the perfect solution to add extra personality to your bath. Right now, trends offer two different but equally chic directions – large-scale tile and small-scale mosaics. Tiles with wood-like appearances are also gaining popularity; they create a warm, inviting look, but offer the wet-space practicality of tile. If it’s your first time tiling, home improvement experts at stores like Lowe’s can provide guidance to get started with your tile flooring.

Throughout the home

When it comes to low-effort, big-impact changes, it’s hard to beat a fresh coat of paint. For walls that feel drab, boring or outdated, new paint makes a color statement and draws attention to architectural details. Follow these paint tips to make an instant, dramatic impression:

Alter the dimensions of a space by painting ceilings a slightly lighter color than the walls.
Create patterns and shapes using painter’s tape. Stripes, chevrons and ombre effects are perfectly on-trend.
Highlight architectural details by painting interior doors and trim in a colorful hue instead of traditional white.
In one weekend or less, these simple changes will make your home feel like an entirely new space. So when the seasonal urge to renovate sets in, don’t resist – reinvigorate your home with these ideas. Find more decorating trends and inspiration at Lowes.com.

Every year, our politicians talk about the need to simplify the tax code and every year, they make it more complex.

The average taxpayer will spend an estimated 23 hours completing their return this year. Eighty percent of taxpayers will hire someone to do the work, or buy tax software, even though 64 percent of taxpayers don’t owe anything.

There are six definitions of a child; more than a dozen educational credits, and 16 different types of tax-favored savings plans. That may seem daunting, but with some basic knowledge and planning, you can avoid costly mistakes.

Here is a list of the seven common mistakes and missed deductions to help you prepare your 2012 tax return.

1. Charitable deductions – cash. Did you make a contribution to charity last year? The IRS is cracking down on bogus deductions, so be sure to follow the donation tax rules. One of the most important rules is that you give to a charity with an IRS tax-exempt status. Don’t forget to take the mileage deduction when it applies. The IRS allows 14 cents per mile driven in service of charitable organizations.

2. Charitable deductions – in kind. Your used clothing donated to charity may not be seem worth much, but consider using valuation software to determine how much to claim. You may be pleasantly surprised. The same applies for furniture and other household items donated. Clothing must be in good condition or better to take the deduction.

3. Social Security number. Privacy concerns caused the IRS to stop putting taxpayer Social Security numbers on tax package labels. Most of your tax information is keyed to your tax ID number.Tax ID number errors raise red flags with the IRS, which attempts to match reported income to tax returns. This number is also important when claiming the Child Tax and Additional Child Tax credits and credits for educational expenses. Take time to verify that your tax ID number is correct on 1099s, W-2 forms and all tax documents to avoid delays processing your return.

4. Dividend reinvestments. Each time a stock or mutual fund reinvests dividends, it’s the same as making a new purchase of shares. The amount of the reinvested dividend adds to your tax basis when you calculate your taxable gain from a sale. Make sure you don’t overpay the IRS. Mutual funds generally track the average basis of shares and automatically include reinvested dividends in the calculation. Ultimately it’s up to you to make sure you calculate the gain properly.

5. Unused deductions from 2011. The tax code allows capital losses to offset capital gains. When losses exceed gains, the taxpayer can use only $3,000 of losses against other income. Any excess loss can be carried forward into future tax years. Don’t forget to carry the unused losses over to your 2012 tax return. Charitable deductions are capped based on the type of property donated and your adjusted gross income. Excess deductions can also be carried into future years. Don’t let carryovers get lost in the shuffle.

6. Excess Roth contributions. Single taxpayers whose modified adjusted gross income is between $110,000 – $125,000 ($173,000 – $183,000 for joint filers) cannot make a full Roth IRA contribution. Check this number when you complete your tax return. Excess contributions are subject to a 6 percent penalty on the amount you contributed.

7. Overlooked medical deductions. Health insurance premiums are an often overlooked deduction. The portion paid by the employee is a deductible expense when you itemize. This includes the portion you pay to Medicare which is usually deducted from Social Security. Transportation expenses for trips to medical facilities or doctors’ offices are also deductible. The IRS allows 23 cents per mile driven for medical purposes in 2012.

If you have made a mistake or missed a deduction you can file an amended tax return to correct the problem. Some taxpayers worry filing an amended return will increase their chances of being audited. Amending the return doesn’t focus the IRS’s attention on your return but it will extend your exposure to their challenges. The IRS looks back three years from the date you file a return. When you amend your tax return you reopen the three-year window.

No one likes to deal with the IRS and taxes, but you could be leaving money on the table by not filing an amendment. If the total amount of tax you owe is smaller than your original return, the IRS will refund the difference.

Also file an amended return if the correction results in additional tax owed. The IRS will add interest to the amount if you amend after your filing deadline, but it rarely adds penalties. Correcting the mistake early saves interest and can avoid penalties.

Certified Financial Planner® Rick Rodgers is president of Rodgers & Associates, “The Retirement Specialists,” in Lancaster, Pa., and author of “The New Three-Legged Stool: A Tax Efficient Approach to Retirement Planning.”

For more information, visit www.RodgersSpeaks.com.

Whether it’s adding a sunroom, refurbishing a bath, or modernizing your kitchen, remodeling projects can be fun and exciting and add comfort and value to your home. But, noted contractors at a home remodeling expo in California, costly planning or construction mistakes can cost you time, money, and satisfaction.

The experts advise avoiding these top five remodeling mistakes:

• Not getting a permit – A room added without a permit may not be counted as part of your total square footage when you sell. It may cost you a few bucks in the short run, but check with your city about zoning restrictions and necessary permits before you begin any project.
• Being too trendy – Home design trends go in and out of fashion. Today’s popular vessel sinks for example – the ones that sit on top of the bathroom counter like a salad bowl – could be out of favor down the line. Unless you love them unconditionally, err on the side of the more traditional when choosing colors, patterns and designs.
• Lowballing – Inexpensive is good. Cheap is not, and there’s a difference. Choose quality materials from roofing shingles to kitchen cabinets because you may be in for a major disappointment when shoddy materials don’t perform as expected.
• Inaccurate measurements – If you’re doing it yourself, measure everything three times before the fabric, lumber, or granite is cut or the new refrigerator is selected. Best choice? Have a licensed contractor do the work or consult with experienced installers.
• Counting on too big a payback – While it’s true that great kitchens can sell houses, be careful of over-investing. Do the work that’s needed, but understand that your beautiful new kitchen will represent no more than 15 percent of your home’s actual resale value. New windows? They will look great and reduce draftiness, but don’t expect them to “pay for themselves” in energy costs in just the first few years after installation.