CAIRO – Libya's oil chief said Monday that production had been cut by around 50 percent, and argued it was "safe" for foreign oil workers to return after a mass exodus sparked by Moammar Gadhafi's increasingly violent campaign to retain control of the country.
The assurances by Shukri Ghanem, the head of the state-run National Oil Co. and Libya's de facto oil minister, came as uncertainty swirled about the state of the OPEC member's production and who was actually in control of the brunt of the nation's oil. Libya sits atop Africa's largest proven reserves.
The country is the only member of the Organization of the Petroleum Exporting Countries so far seriously affected by the protests roiling the Arab world, and unrest there has sent shudders through global oil markets.
Ghanem claimed that the government in Tripoli remained firmly in control of the country's oil installations — from fields to refineries and pipelines. He rejected an assessment put forward by EU Energy Commissioner Guenther Oettinger on Monday that Gadhafi had lost control of the country's main oil and gas fields.
"He does not control the oil," Ghanem said, referring to Oettinger. "You can believe who you want, but I am the chairman of the National Oil Company and I know what we produce," he told The Associated Press in a telephone interview.
Ghanem conceded, however, that production at some fields, including in the Hamada area, had been halted, but attributed the disruption to the departure of foreign workers.
"Of course there is a drastic cut" in production, he said. "The main reason for the oil production to come down is the panic of foreign laborers, who felt they had to leave. I think all laborers will be safe if they return."
The comments came hours after officials in Libya's east, which has thrown off Gadhafi's rule, said that the Tobruk port had reopened and one China-bound tanker was being loaded with 1 million barrels of crude. Another tanker, destined for Italy, was waiting to pick up its cargo of 600,000 barrels of Libya's light sweet crude — a refiner's favorite.
"The terminal (at Tobruk) is working at 100 percent," Rajab Sahnoun, an official with the Arabian Gulf Oil Co., which is based in the eastern city of Benghazi, told the AP.
Sahnoun also said that at least two of the major eastern fields, Sarir and Misla, were still producing, though at slightly reduced capacity. He was not able to say how much production was down at those fields, but noted that the 34-inch pipeline to the terminal was operating normally. The terminal can store 4 million barrels of crude, he said.
Another Agoco official, Ali Faraj, who works in the emergency operations room at the facility, said the company's production of roughly 220,000 barrels per day was largely unaffected.
"A drop of 5,000 or 6,000 barrels per day, in our experience, is not a drop, really," Faraj said.
Libya produces about 1.6 million barrels per day of crude oil, and about 85 percent of its exports are Europe-bound.
Aside from uncertainty about a drop in Libya's exports, oil markets are also panicked that the unrest in the Arab world could spread to other, bigger, OPEC members such as Saudi Arabia or Kuwait, prompting a price rally that could undermine global recovery efforts.
The head of Saudi Arabia's state-run oil giant, Saudi Aramco, said his company had already stepped in to offset the drop in Libyan exports. Khalid Al Falih, however, declined to specify how much additional oil the company had supplied.
Ensuring market stability has long been a source of pride for Saudi Arabia, the de facto leader of the 12-nation bloc that supplies about 35 percent of the world's crude. The country's information minister said Monday that the Cabinet had reaffirmed Saudi Arabia's role in the market and that it was continuing consultations with OPEC members to ensure stability of supply.
Iran, however, which holds OPEC's revolving presidency, cautioned Riyadh against "hasty" steps by injecting new volumes into the market, the official IRNA news agency reported.
Oil markets have rallied over the past couple of weeks because of the broader unrest in the Arab world, and spiked late last week because of Libya. Saudi Arabia's comments Monday helped cool the futures market slightly, with the U.S. crude futures benchmark holding at around $98 per barrel while its London counterpart, Brent, clung to a precariously high level of $113 per barrel.
The spread between the two contracts reflected the fears about Libya. Crude from that country is of roughly the same quality as Brent, and questions about how much control Gadhafi had over his key export unnerved global markets.
EU Energy Commissioner Oettinger said during a meeting of EU energy ministers Monday that control over much of the oil and gas fields is in the hands of regional families or provisional regional leaders that have emerged from the revolt and chaos. But he also spoke out against a proposal put forward by Germany's foreign minister that the EU should consider a total ban on payments to Libya including for oil deliveries.
Oettinger argued that since Gadhafi already lost much of the control over the oil and gas fields, imposing a ban on oil imports would be bad.
"We'd be punishing the wrong people potentially and we would be discarding the regional aspects if we just stopped imports altogether," he said. "We might actually be punishing people who have changed their ways, who are acting better."
The sanctions issue also raises questions about who would be paid for the Libyan crude given the uncertainty in the country and the efforts to isolate Gadhafi's regime.
A Libyan oil official in the east said that February loading cargoes had already been paid for, but that those for March had not. The official, speaking on condition of anonymity because of the sensitivity of the matter, said that if and when Gadhafi falls, the money would go to the new government. Barring that possibility at present, the payment could be channeled to the regional government in Benghazi, he said.
But experts questioned whether that option would be agreeable to international oil companies who would have no real assurances that they were paying the proper authorities. In addition, if a new government was to be set up, it may request the money that was already paid, for example, to the regional government.
A third option would be for the sale proceeds to be put into some sort of escrow account until some clarity emerges in the country.
Ghanem, Libya's de facto oil minister, said that tankers were loading at the various Libyan ports — indicating that all were operational though that could not be immediately independently confirmed.
"I cannot say its business as usual, or production as usual," Ghanem said. But he stressed that the NOC was firmly in control and coordinating the production, refining and transportation of crude oil in the country.
Ghanem said that for production to return to normal, the foreign workers needed to return.
But international companies, if they haven't done so already, are still trying to pull their expatriate workers from the embattled nation.
Pro-Gadhafi militias and mercenaries have made travel in the country unsafe, and few foreigners appear inclined to stay in the country to see how the political situation will play out given that Gadhafi has vowed a fight to the death.
Italy's Eni SpA, which before the crisis produced 244,000 barrels of gas and oil equivalent a day in Libya, about a quarter of the country's exports, said it was continuing to evacuate its employees.
The company last week announced that supplies of natural gas from Libya, through the Greenstream pipeline, had been suspended. But Eni said it was able to meet its customers' demand for gas. Up until the crisis, Libya supplied around 10 percent of Italy's gas.
Oil workers for Britain's OPS International oil field services company made it across the Egyptian border in a convoy of buses across the desert late Sunday night, and another bus full of oil workers reached the Libyan port of Ras Lanuf Monday and boarded a ship bound for Malta, said company chairman Gavin de Salis.
Meanwhile, France's Total SA said it evacuated all expatriate oil workers in the country, and their families, said spokeswoman Phenelope Semavoine. She said the company "continues to reduce some of our production" of Libya oil but declined to provide more detail.
Repsol spokesman Kristian Rix said Monday that the company is now "declining to give production figures because the situation is unclear and communications are difficult." He said the company was able to get the rest of its employees and contractors out of remote Libyan desert production areas over the weekend. In all, about 200 employees have been evacuated since the crisis began.
2/28/2011
Fewer people sign contracts to buy homes in Jan.
Fewer Americans signed contracts to buy homes in January, the latest evidence that the housing market is struggling to rise above depressed levels.
The National Association of Realtors says its index of sales agreements for previously occupied homes fell 2.8 percent last month to a reading of 88.9, the second straight monthly decline.
The reading was higher than the 75.9 reading from June, the low point since the housing bust. But it's below 100, which is considered a healthy level. The last time it reached that point was in April, the final month people could qualify for a home-buying tax credit.
Sales of previously owned homes fell last year to the lowest level in 13 years. Economists say it will be years before the housing market fully recovers. High unemployment, strict lending standards, and a record number of foreclosures are deterring potential buyers, who fear home prices haven't reached the bottom.
Contract signings of previously owned homes are usually a good indicator of where the housing market is heading. That's because there's usually a one- to two-month lag between a sales contract and a completed deal.
Steven Wood, chief economist for Insight Economics, said the tax credits have pulled home sales on a "rollercoaster ride over the past two years" and that sales have not yet found a steady level.
The Realtors group had reported a modest 2 percent increase in December, which would have marked the fifth such uptick in the previous six months. But the trade association, which began tracking contract signings of homes in 2001, revised its figures to show that signings fell in December from November by nearly 3.2 percent.
Jennifer Lee, senior economist for BMO Capital Markets, said the dismal contract numbers in January is "clearly bad news" for the nation's housing industry.
"And we can't blame weather as three of the four regions saw a decline," she said.
Prices and sales of previously occupied homes have painted a grim picture of that portion of the housing market, which historically accounts for roughly 85 percent of home sales.
Housing prices in all but one of the 20 cities tracked by the Standard & Poor's/Case Shiller index fell in December from November. Eleven of the markets — stretching from Seattle to Miami — hit their lowest point since the housing bubble burst in 2006 and 2007.
Sales of previously occupied homes rose slightly last month. But the seasonally adjusted annual pace of 5.36 million is still far below the 6 million homes a year needed to maintain a healthy market.
The National Association of Realtors says its index of sales agreements for previously occupied homes fell 2.8 percent last month to a reading of 88.9, the second straight monthly decline.
The reading was higher than the 75.9 reading from June, the low point since the housing bust. But it's below 100, which is considered a healthy level. The last time it reached that point was in April, the final month people could qualify for a home-buying tax credit.
Sales of previously owned homes fell last year to the lowest level in 13 years. Economists say it will be years before the housing market fully recovers. High unemployment, strict lending standards, and a record number of foreclosures are deterring potential buyers, who fear home prices haven't reached the bottom.
Contract signings of previously owned homes are usually a good indicator of where the housing market is heading. That's because there's usually a one- to two-month lag between a sales contract and a completed deal.
Steven Wood, chief economist for Insight Economics, said the tax credits have pulled home sales on a "rollercoaster ride over the past two years" and that sales have not yet found a steady level.
The Realtors group had reported a modest 2 percent increase in December, which would have marked the fifth such uptick in the previous six months. But the trade association, which began tracking contract signings of homes in 2001, revised its figures to show that signings fell in December from November by nearly 3.2 percent.
Jennifer Lee, senior economist for BMO Capital Markets, said the dismal contract numbers in January is "clearly bad news" for the nation's housing industry.
"And we can't blame weather as three of the four regions saw a decline," she said.
Prices and sales of previously occupied homes have painted a grim picture of that portion of the housing market, which historically accounts for roughly 85 percent of home sales.
Housing prices in all but one of the 20 cities tracked by the Standard & Poor's/Case Shiller index fell in December from November. Eleven of the markets — stretching from Seattle to Miami — hit their lowest point since the housing bubble burst in 2006 and 2007.
Sales of previously occupied homes rose slightly last month. But the seasonally adjusted annual pace of 5.36 million is still far below the 6 million homes a year needed to maintain a healthy market.
Best Buy, Home Depot find tough times in China
SHANGHAI – Home Depot is no longer open for home improvements in Beijing. Best Buy Inc. decided its brand name electronics stores were not best for China.
This may well be the world's biggest and fastest growing consumer market, but foreign retailers are finding China is no easy sell as tough competition and a boom in online shopping prompt some big names to pack up or drastically alter their market strategy.
Minneapolis-based Best Buy opened its flagship store and other outlets in Shanghai just a few years ago, to great fanfare. This week it closed all nine of its brand name stores in China, stunning employees and customers: On Friday, hundreds of people were lined up outside the city's biggest store to seek help with returns and other customer services.
Best Buy says it plans to increase the number of its Five Star outlets — acquired through the company's purchase of provincial retailer Jiangsu Five Star Appliance Co. in 2006 — to about 210 by early 2012. It also is studying more profitable options for its Best Buy-branded outlets and plans to reopen two of them.
"We at Best Buy will not withdraw from the Chinese market. We will try to find new ways to develop," said a notice posted outside its flagship store in Shanghai's busy downtown Xujiahui shopping district.
Despite its expanded Five Star presence, shuttering the big blue outlets in some of Shanghai's choicest locations signals the company misjudged the local market, analysts say.
"My sense is that their first error was to use a model similar to the one they use in the U.S.," said Torsten Stocker, vice president of the consultancy Monitor Group. "Maybe their people were good at doing what Best Buy does back in America but not at operating a retailer in China."
Last month, Home Depot closed its last store in Beijing, one of several outlets shut down since 2009. The world's biggest home improvement retailer has retained outlets in some key provincial cities, where costs are presumably lower and competition perhaps less intense.
Meanwhile, regulators recently ordered up to 500,000 yuan ($75,900) in fines for hypermarket retailers Carrefour and Wal-Mart for over charging on items ranging from underwear to dumpling flour — a sore point when authorities are jittery over inflation. Shanghai newspaper reports also criticized Carrefour, a French chain, of not paying its employees fair wages.
Some foreign retailers are thriving in China. KFC and Pizza Hut owner Yum Brands Inc. saw its annual operating profit surge 26 percent last year, pushing toward the $1 billion mark, thanks to the voracious Chinese appetite for western fast foods. The Shanghai outlets of foreign fashion retailers like H&M and Zara are often packed.
As Best Buy stages its strategic retreat from China's richest city, Apple Inc. reportedly plans a yet bigger shop right on Shanghai's famous Nanjing Rd. to help accommodate weekend crowds jammed into two recently opened spacious stores.
With incomes of many workers rising by more than 10 percent a year, China's growing affluence makes it a market few companies can afford to ignore. But hitting the right notes with Chinese consumers is crucial, and not always easy, analysts say.
Chinese customers balked at paying a premium for Best Buy's offer of a pleasant store experience and helpful service, including its Geek Squad computer troubleshooters, said Liu Hongjiao, a senior consultant with Analysys International Solution in Beijing.
While its competitors like Suning Appliance and its archrival Gome Electrical Appliances Holdings have suppliers that take payments after their products are sold, in Shanghai Best Buy had no such advantage. Add to that costs for labor and for retail space and the overhead was just not competitive, Liu said.
"Foreign companies are sometimes bolder than local ones, but the local companies know more about the local customers. They are better at controlling costs and keeping prices low," said Ding Wenjin, an analyst with Dongguan Securities in the southern city of Dongguan.
"Especially in these days of serious inflation, people are more sensitive about prices," Ding said.
In China, Best Buy has also been bested by local competitors in online sales in a market where, increasingly, purchases are done with the click of mouse.
From towels and T-shirts to microwaves and cell phones — Chinese go online to comparison shop and then wait for their purchases to be sent, cash-on-delivery, straight to their homes or offices.
Online retail sales doubled in China last year from 2009, to 513.1 billion yuan ($77.7 billion), according to figures from the China E-commerce Research Center.
Of course, in a shopping-obsessed city like Shanghai, there is still plenty of retailing to be done: companies like Apple and Zara, which manufacture their own products, draw customers with their unique products, analysts say.
"Their market positioning is high, because their products are different from local brands," said Ding. "However, if you want to buy something like a Nokia cell phone, that's different. It will be the same whether it's from Best Buy, Suning or online," he said.
This may well be the world's biggest and fastest growing consumer market, but foreign retailers are finding China is no easy sell as tough competition and a boom in online shopping prompt some big names to pack up or drastically alter their market strategy.
Minneapolis-based Best Buy opened its flagship store and other outlets in Shanghai just a few years ago, to great fanfare. This week it closed all nine of its brand name stores in China, stunning employees and customers: On Friday, hundreds of people were lined up outside the city's biggest store to seek help with returns and other customer services.
Best Buy says it plans to increase the number of its Five Star outlets — acquired through the company's purchase of provincial retailer Jiangsu Five Star Appliance Co. in 2006 — to about 210 by early 2012. It also is studying more profitable options for its Best Buy-branded outlets and plans to reopen two of them.
"We at Best Buy will not withdraw from the Chinese market. We will try to find new ways to develop," said a notice posted outside its flagship store in Shanghai's busy downtown Xujiahui shopping district.
Despite its expanded Five Star presence, shuttering the big blue outlets in some of Shanghai's choicest locations signals the company misjudged the local market, analysts say.
"My sense is that their first error was to use a model similar to the one they use in the U.S.," said Torsten Stocker, vice president of the consultancy Monitor Group. "Maybe their people were good at doing what Best Buy does back in America but not at operating a retailer in China."
Last month, Home Depot closed its last store in Beijing, one of several outlets shut down since 2009. The world's biggest home improvement retailer has retained outlets in some key provincial cities, where costs are presumably lower and competition perhaps less intense.
Meanwhile, regulators recently ordered up to 500,000 yuan ($75,900) in fines for hypermarket retailers Carrefour and Wal-Mart for over charging on items ranging from underwear to dumpling flour — a sore point when authorities are jittery over inflation. Shanghai newspaper reports also criticized Carrefour, a French chain, of not paying its employees fair wages.
Some foreign retailers are thriving in China. KFC and Pizza Hut owner Yum Brands Inc. saw its annual operating profit surge 26 percent last year, pushing toward the $1 billion mark, thanks to the voracious Chinese appetite for western fast foods. The Shanghai outlets of foreign fashion retailers like H&M and Zara are often packed.
As Best Buy stages its strategic retreat from China's richest city, Apple Inc. reportedly plans a yet bigger shop right on Shanghai's famous Nanjing Rd. to help accommodate weekend crowds jammed into two recently opened spacious stores.
With incomes of many workers rising by more than 10 percent a year, China's growing affluence makes it a market few companies can afford to ignore. But hitting the right notes with Chinese consumers is crucial, and not always easy, analysts say.
Chinese customers balked at paying a premium for Best Buy's offer of a pleasant store experience and helpful service, including its Geek Squad computer troubleshooters, said Liu Hongjiao, a senior consultant with Analysys International Solution in Beijing.
While its competitors like Suning Appliance and its archrival Gome Electrical Appliances Holdings have suppliers that take payments after their products are sold, in Shanghai Best Buy had no such advantage. Add to that costs for labor and for retail space and the overhead was just not competitive, Liu said.
"Foreign companies are sometimes bolder than local ones, but the local companies know more about the local customers. They are better at controlling costs and keeping prices low," said Ding Wenjin, an analyst with Dongguan Securities in the southern city of Dongguan.
"Especially in these days of serious inflation, people are more sensitive about prices," Ding said.
In China, Best Buy has also been bested by local competitors in online sales in a market where, increasingly, purchases are done with the click of mouse.
From towels and T-shirts to microwaves and cell phones — Chinese go online to comparison shop and then wait for their purchases to be sent, cash-on-delivery, straight to their homes or offices.
Online retail sales doubled in China last year from 2009, to 513.1 billion yuan ($77.7 billion), according to figures from the China E-commerce Research Center.
Of course, in a shopping-obsessed city like Shanghai, there is still plenty of retailing to be done: companies like Apple and Zara, which manufacture their own products, draw customers with their unique products, analysts say.
"Their market positioning is high, because their products are different from local brands," said Ding. "However, if you want to buy something like a Nokia cell phone, that's different. It will be the same whether it's from Best Buy, Suning or online," he said.
Bank of Montreal CEO pay jumps 28 percent to C$9.5 million
TORONTO (Reuters) – Bank of Montreal Chief Executive Bill Downe earned C$9.5 million ($9.8 million) in the bank's fiscal 2010, a 28 percent raise from the previous year, as BMO's profit rose and it made acquisitions in the wake of the financial crisis.
Downe earned a base salary of C$1.0 million last year, which actually was a decrease from his base salary of C$1.2 million in 2009, according to a regulatory filing.
But his cash bonus jumped 80 percent to C$2.9 million, and his stock-based compensation increased 20 percent to C$5.7 million.
Profit at BMO, Canada's No. 4 bank, rose 57 percent to C$2.8 billion in 2010, up from C$1.8 billion in 2009, when the bank was stung by credit losses.
Toronto-Dominion Bank CEO Ed Clark's pay rose 8 percent to C$11.3 million last year, while Royal Bank of Canada CEO Gordon Nixon earned C$11 million, up 5.8 percent from the previous year.
RBC and TD are Canada's largest banks.
Since emerging from the crisis, BMO has begun making acquisitions as it seeks to increase its U.S. business. In December, it launched a $4.1 billion takeover bid for Wisconsin lender Marshall & Ilsley Corp.
The bank reports first-quarter 2011 results on Tuesday.
($1=$0.97 Canadian)
Downe earned a base salary of C$1.0 million last year, which actually was a decrease from his base salary of C$1.2 million in 2009, according to a regulatory filing.
But his cash bonus jumped 80 percent to C$2.9 million, and his stock-based compensation increased 20 percent to C$5.7 million.
Profit at BMO, Canada's No. 4 bank, rose 57 percent to C$2.8 billion in 2010, up from C$1.8 billion in 2009, when the bank was stung by credit losses.
Toronto-Dominion Bank CEO Ed Clark's pay rose 8 percent to C$11.3 million last year, while Royal Bank of Canada CEO Gordon Nixon earned C$11 million, up 5.8 percent from the previous year.
RBC and TD are Canada's largest banks.
Since emerging from the crisis, BMO has begun making acquisitions as it seeks to increase its U.S. business. In December, it launched a $4.1 billion takeover bid for Wisconsin lender Marshall & Ilsley Corp.
The bank reports first-quarter 2011 results on Tuesday.
($1=$0.97 Canadian)
7 Tips for Getting More from DIY Tax Programs
Do-it-yourself tax-preparation programs cover a broad field of services and functions. With prices ranging from zero to $130 and higher, tax packages include programs for simple returns and for tax filers who own small businesses and investment portfolios.
"Just make sure you select the right product and the right version of the product," said Bob Meighan, vice president-TurboTax. Here are seven tips for getting the most from tax preparation programs:
[In Pictures: 10 Smart Ways to Improve Your Budget.]
1. Update the box
Surprise! Straight from the box, even the newest tax software may be outdated. That's because tax programs are typically shipped in late November or early December, but Congress could issue last-minute changes to the tax code after the software shipping dates. That happened this season, when new federal tax legislation was passed in mid-December after most tax programs arrived on store shelves. For that reason, it's important to download program updates before you start inputting data and making computations, Meighan said. Most tax programs, he pointed out, provide onscreen reminders and prompts about downloading updates.
2. Take out the garbage
The old cliché about data is true: Garbage in; garbage out. The strength of your tax return depends on the quality of information you type into the program. Maximize a program's effectiveness by reading directions carefully. Provide accurate and complete answers for the preliminary "interview" section of the program, Meighan said. Incorrect and incomplete answers could work against you and result in a larger-than-anticipated tax bill, a smaller refund or a tax audit from the Internal Revenue Service.
3. Study
The tax laws change every year. Ignorance of the law can be expensive. "You could miss out on money," said Elaine Smith, a tax advisor at H&R Block. Find out if you qualify for different deductions based on improvements to your home or major changes in your life. For example, taxpayers who support children and elderly parents might be eligible for the "qualifying relative exemption," a deduction of up to $3,650 in expenses for medical care, education, food and housing costs. To find out if you qualify for different deductions, check out the "Am I Eligible" tool and other online resources at IRS.gov.
[In Pictures: 12 Money Mistakes Almost Everyone Makes]
4. Get help
Tax software packages are bundled with access to multi-media support, including videos, blogs, articles, live telephone support and chat rooms. TurboTax has an extensive library of short online videos. Titles include "Deducting Charitable Contributions," "Deducting Mortgage Interest and Property Tax" and "Tax Tips for the Self Employed." H&R Block features a tax blog called "On the Ledger," which is written by Leigh Mutert, a CPA.
Recent topics have included posts about claiming dependents, information about filing out a W-4 form and updates for unemployed tax filers. With its tax preparation software, Jackson Hewitt offers a pull-down menu with industry specific information based on job title. "If you work in an office as a secretary, administrative assistant, or accounting or data entry clerk, you should receive Form W-2, Wage and Tax Statement, from your employer," according to the job-specific tool, which provides detailed information about tax deductions and credits, for "job-related expenses."
5. Consider defaulting
Based on your financial profile, tax programs provide default options for different tax credits and deductions. Selecting default options could be in your best interest. For example, after you have itemized education expenses and entered the necessary data, the program might tell you that you're better off with standard deductions. "Accept the program defaults, they'll be generally right," Meighan said.
6. Proofread
Always review your tax return prior to filing. Check income figures and deductions for accuracy. You are responsible for the accuracy of your return, even if you use a tax program or hire an accountant.
7. Go green
File your taxes electronically. In 2010, 34.8 million tax payers filed their own taxes electronically, up from 32.8 million in 2009, a 12-month gain of 8.2 percent in electronic do-it-yourself tax preparation, according to federal data. Logic backs that growth. Electronic filing eliminates the hassles of printing and shipping documents. What's more, you can get your refund check in 8-12 days. "And it's green for the environment," Meighan said.
Sharon Harvey-Rosenberg is a member of Wise Bread's top personal finance blog network. She is the author of "Frugal Duchess: How to Live Well and Save Money" and a contributing author to "10,001 Ways to Live Large on a Small Budget."
"Just make sure you select the right product and the right version of the product," said Bob Meighan, vice president-TurboTax. Here are seven tips for getting the most from tax preparation programs:
[In Pictures: 10 Smart Ways to Improve Your Budget.]
1. Update the box
Surprise! Straight from the box, even the newest tax software may be outdated. That's because tax programs are typically shipped in late November or early December, but Congress could issue last-minute changes to the tax code after the software shipping dates. That happened this season, when new federal tax legislation was passed in mid-December after most tax programs arrived on store shelves. For that reason, it's important to download program updates before you start inputting data and making computations, Meighan said. Most tax programs, he pointed out, provide onscreen reminders and prompts about downloading updates.
2. Take out the garbage
The old cliché about data is true: Garbage in; garbage out. The strength of your tax return depends on the quality of information you type into the program. Maximize a program's effectiveness by reading directions carefully. Provide accurate and complete answers for the preliminary "interview" section of the program, Meighan said. Incorrect and incomplete answers could work against you and result in a larger-than-anticipated tax bill, a smaller refund or a tax audit from the Internal Revenue Service.
3. Study
The tax laws change every year. Ignorance of the law can be expensive. "You could miss out on money," said Elaine Smith, a tax advisor at H&R Block. Find out if you qualify for different deductions based on improvements to your home or major changes in your life. For example, taxpayers who support children and elderly parents might be eligible for the "qualifying relative exemption," a deduction of up to $3,650 in expenses for medical care, education, food and housing costs. To find out if you qualify for different deductions, check out the "Am I Eligible" tool and other online resources at IRS.gov.
[In Pictures: 12 Money Mistakes Almost Everyone Makes]
4. Get help
Tax software packages are bundled with access to multi-media support, including videos, blogs, articles, live telephone support and chat rooms. TurboTax has an extensive library of short online videos. Titles include "Deducting Charitable Contributions," "Deducting Mortgage Interest and Property Tax" and "Tax Tips for the Self Employed." H&R Block features a tax blog called "On the Ledger," which is written by Leigh Mutert, a CPA.
Recent topics have included posts about claiming dependents, information about filing out a W-4 form and updates for unemployed tax filers. With its tax preparation software, Jackson Hewitt offers a pull-down menu with industry specific information based on job title. "If you work in an office as a secretary, administrative assistant, or accounting or data entry clerk, you should receive Form W-2, Wage and Tax Statement, from your employer," according to the job-specific tool, which provides detailed information about tax deductions and credits, for "job-related expenses."
5. Consider defaulting
Based on your financial profile, tax programs provide default options for different tax credits and deductions. Selecting default options could be in your best interest. For example, after you have itemized education expenses and entered the necessary data, the program might tell you that you're better off with standard deductions. "Accept the program defaults, they'll be generally right," Meighan said.
6. Proofread
Always review your tax return prior to filing. Check income figures and deductions for accuracy. You are responsible for the accuracy of your return, even if you use a tax program or hire an accountant.
7. Go green
File your taxes electronically. In 2010, 34.8 million tax payers filed their own taxes electronically, up from 32.8 million in 2009, a 12-month gain of 8.2 percent in electronic do-it-yourself tax preparation, according to federal data. Logic backs that growth. Electronic filing eliminates the hassles of printing and shipping documents. What's more, you can get your refund check in 8-12 days. "And it's green for the environment," Meighan said.
Sharon Harvey-Rosenberg is a member of Wise Bread's top personal finance blog network. She is the author of "Frugal Duchess: How to Live Well and Save Money" and a contributing author to "10,001 Ways to Live Large on a Small Budget."
Rising Gas Prices Due to Manipulation Not Demand?
Gas prices across the country have been on a steady increase during the past three weeks as the Middle East has been involved in the throes of civil unrest. Is this an impending gas crisis that could reach the scale of the 1973 oil embargo implemented by OPEC?
There is no such shortage of oil to warrant the increase in gas prices that are now skyrocketing across the country. The United States reserves are at a 20-year high, according to the website Global Research and the speculative market is driving the bus on this latest price increase that is expected to drive gas prices over the $4 a gallon mark before summer.
How does this compare to other gas crisis situations in the past? It does not compare to any of the price increase situations in the 1970s, it will be far worse. It is an alarming trend that the price of oil is now being controlled by the volatile commodity markets. The following are circumstances that led to previous high gas prices.
1973: Oil Embargo by OPEC Creates Shortages
OPEC leaders made a decision to cut back oil production in response to the United States choosing to arm its allies, Israel, during the Yom Kippur War. This NBC Nightly News report on the incident from 1973 goes on to explain the escalating crisis. OPEC agreed to cut production of oil 5 percent per month until Israel pulled out of the Sinai.
Interestingly, the Shah of Iran played a major part in the oil embargo of 1973. This might have led the United States to allow his overthrow in 1979 and eventually led to the next major oil crisis. The Shah of Iran was one of the most outspoken OPEC members that pushed for the 1973 oil embargo.
1979-1980: Gas Crisis Blamed on Iranian Revolution
The 1979 overthrow of the Shah of Iran and the rise to power of the Ayatollah Khomeini in Iran were the reasons given for the 1979 gas crisis. In reality, it was another price increase implemented by Saudi Arabia and OPEC. In 1980, gas prices reached $1.25 for unleaded. The price of gas was effectively doubled since 1976.
2005: Gas Crisis Blamed on Hurricane Katrina
The devastation in the Gulf of Mexico dealt by Hurricane Katrina was the reason given for gas prices increasing in 2005. Gas prices increased from $1.88 a gallon in 2004 to $2.30 a gallon for 2005. The increase was not as sharp as expected, but it was just as unnecessary.
2008: Gas Prices Rise to $3.57 Per Gallon
The most recent rise in gas prices in 2008 was driven purely by speculation much like the current price increase. Ultimately as Newsweek reported in 2008, the only sure way for the United States to curb its usage of gas and change its habits will be for the price of gas to reach the $6 mark. Is this the ultimate goal of government to rid us of our addiction to foreign oil?
There is no such shortage of oil to warrant the increase in gas prices that are now skyrocketing across the country. The United States reserves are at a 20-year high, according to the website Global Research and the speculative market is driving the bus on this latest price increase that is expected to drive gas prices over the $4 a gallon mark before summer.
How does this compare to other gas crisis situations in the past? It does not compare to any of the price increase situations in the 1970s, it will be far worse. It is an alarming trend that the price of oil is now being controlled by the volatile commodity markets. The following are circumstances that led to previous high gas prices.
1973: Oil Embargo by OPEC Creates Shortages
OPEC leaders made a decision to cut back oil production in response to the United States choosing to arm its allies, Israel, during the Yom Kippur War. This NBC Nightly News report on the incident from 1973 goes on to explain the escalating crisis. OPEC agreed to cut production of oil 5 percent per month until Israel pulled out of the Sinai.
Interestingly, the Shah of Iran played a major part in the oil embargo of 1973. This might have led the United States to allow his overthrow in 1979 and eventually led to the next major oil crisis. The Shah of Iran was one of the most outspoken OPEC members that pushed for the 1973 oil embargo.
1979-1980: Gas Crisis Blamed on Iranian Revolution
The 1979 overthrow of the Shah of Iran and the rise to power of the Ayatollah Khomeini in Iran were the reasons given for the 1979 gas crisis. In reality, it was another price increase implemented by Saudi Arabia and OPEC. In 1980, gas prices reached $1.25 for unleaded. The price of gas was effectively doubled since 1976.
2005: Gas Crisis Blamed on Hurricane Katrina
The devastation in the Gulf of Mexico dealt by Hurricane Katrina was the reason given for gas prices increasing in 2005. Gas prices increased from $1.88 a gallon in 2004 to $2.30 a gallon for 2005. The increase was not as sharp as expected, but it was just as unnecessary.
2008: Gas Prices Rise to $3.57 Per Gallon
The most recent rise in gas prices in 2008 was driven purely by speculation much like the current price increase. Ultimately as Newsweek reported in 2008, the only sure way for the United States to curb its usage of gas and change its habits will be for the price of gas to reach the $6 mark. Is this the ultimate goal of government to rid us of our addiction to foreign oil?
1/21/2011
Haiti candidate warns of protests, U.S. pulls visas
Haitian presidential candidate Michel Martelly, whom the United Nations and the United States want put back into the country's election runoff, said on Friday he would bring protesters out onto the streets if local election authorities do not comply.
In a move apparently linked to heavy U.S. pressure for Haiti's electoral authorities to amend the preliminary results of chaotic November 28 elections, Washington revoked the U.S. visas of some Haitians associated with the campaign of a government candidate who is Martelly's rival for a runoff place.
The U.N. and western donors are piling pressure on Haiti's government and Provisional Electoral Council to include Martelly, a popular musician, in the deciding second-round contest with opposition matriarch Mirlande Manigat.
This would be in line with an Organization of American States experts' report, delivered to Haitian authorities, that cites "irregularities" in the initial election results. It recommends dropping the government-backed candidate, Jude Celestin, from the runoff, in favor of Martelly.
U.N., U.S. and European officials are emphatically telling Haitian President Rene Preval, who has faced accusations of rigging the first round vote results, that failure to follow the OAS recommendation risks plunging the earthquake-battered Caribbean nation into even more turmoil.
Martelly, whose supporters staged violent protests when the December 7 preliminary results placed him third and excluded him from a deciding second-round vote, said he would "not negotiate" his being one of the final two runoff contenders.
"We are saying that the electoral council has to apply the (OAS) experts' recommendations ... We are prepared to fight to the end," he told a news conference in Port-au-Prince.
"If the recommendations are not respected, the population is ready to take to the streets and we will accompany them to defend their vote."
The uncertainty created by the elections impasse in Haiti, which is trying to recover from a devastating 2010 earthquake, has been intensified by the surprise return home from exile of former dictator Jean-Claude "Baby Doc" Duvalier.
Duvalier, 59, faces charges of corruption and human rights abuses committed during his 1971-1986 rule. Another exiled former president, firebrand ex-priest Jean-Bertrand Aristide, has said he also wants to come home.
Haitian radio stations reported nine Haitians with links to Preval and Celestin's ruling Inite coalition and to Celestin's presidential campaign had their U.S. entry visas revoked.
The list of nine included Preval's Minister of Social Affairs Gerald Germain, Celestin's campaign manager Jean Francois Chamblain and another Inite campaign figure, Assad Volcy, head of communications at the presidential palace.
STATE DEPARTMENT CONFIRMATION
U.S. State Department spokesman P.J. Crowley confirmed that some visas had been revoked and that Haitian officials were among those affected.
"We want to see the government of Haiti embrace the recommendations of the OAS verification mission report. We want to see security and stability sustained in Haiti. We want to see the election results reflect the will of the Haitian people," Crowley said in Washington.
"To the extent that there are individuals who are connected with episodes of violence or corruption, we will not hesitate to take appropriate action," he added.
In Port-au-Prince, Martelly accused outgoing President Preval, who cannot stand again for a second consecutive term, of being "ready to do anything, including killing people" to keep his protege Celestin in the second-round runoff.
Martelly called Duvalier's return a "distraction," saying Preval must have known in advance about the former dictator's intention to return to his homeland. Preval's government has said it had only about an hour's warning Duvalier was coming.
Martelly said he would wait to see the definitive election results from the Provisional Electoral Council, which is expected to give final results at the end of this month.
U.N. officials say they expect a second round runoff in mid-February.
Preval, whose popularity slumped when many Haitians criticized his low-key response to the earthquake disaster, has expressed reservations about the OAS experts' report.
The report puts Martelly ahead of Celestin with as slim a margin -- mere fractions of percentage points - as the original preliminary results from Haiti's Provisional Electoral Council puts Celestin in front and in the second round.
Former first lady Manigat is undisputed as winner of the most votes in the first round, though not enough to win outright.
Subscribe to:
Posts (Atom)